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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sudarshan Chemical Industries Ltd

Basic Stock Data

Last Updated: June 20, 2024, 10:24 pm

Market Cap 6,041 Cr.
Current Price 876
High / Low903/437
Stock P/E51.2
Book Value 166
Dividend Yield0.41 %
ROCE11.8 %
ROE11.9 %
Face Value 2.00
PEG Ratio2.58

Competitors of Sudarshan Chemical Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Vidhi Specialty Food Ingredients Ltd 2,274 Cr. 456497/33862.1 56.30.22 %17.2 %13.8 % 1.00
Poddar Pigments Ltd 485 Cr. 459470/30016.8 3280.76 %12.2 %8.98 % 10.0
Prolife Industries Ltd 82.3 Cr. 201338/1879.40 1000.15 %35.6 %27.1 % 10.0
Ushanti Colour Chem Ltd 57.7 Cr. 54.076.0/51.0 41.40.00 %0.07 %5.58 % 10.0
Bodal Chemicals Ltd 981 Cr. 78.0101/65.8152 86.00.13 %3.13 %0.60 % 2.00
Industry Average636.45 Cr263.1855.07162.890.19%9.04%8.02%8.45

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales577474498602627554528528691608601566764
Expenses489412445528541513486486606538535504645
Operating Profit876253748641434285706662119
OPM %15%13%11%12%14%7%8%8%12%11%11%11%16%
Other Income211221112319643
Interest45455691115101098
Depreciation21212222252627313135353536
Profit before tax6437284958108141344262278
Tax %17%29%18%25%22%32%43%17%20%22%32%34%26%
Net Profit532623364575133267181558
EPS in Rs7.723.783.295.266.451.020.660.084.7038.562.582.118.38

Last Updated: June 9, 2024, 2:37 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:09 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales8631,1061,2051,4011,2821,3291,5931,7081,8642,2012,3022,539
Expenses7849741,0751,2321,0931,1391,3861,4601,5741,9232,0882,222
Operating Profit80133131170189191207248290278213316
OPM %9%12%11%12%15%14%13%15%16%13%9%12%
Other Income72231425158122755332
Interest344341373025191620234437
Depreciation26374248495866748789114141
Profit before tax2655729913612320318019017160471
Tax %15%37%24%29%25%31%33%20%26%24%25%24%
Net Profit223554701018513514514113045357
EPS in Rs3.195.087.8610.1014.6412.2419.5220.8820.3818.776.4751.63
Dividend Payout %39%30%22%30%24%29%31%30%29%27%23%9%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)59.09%54.29%29.63%44.29%-15.84%58.82%7.41%-2.76%-7.80%-65.38%693.33%
Change in YoY Net Profit Growth (%)0.00%-4.81%-24.66%14.66%-60.13%74.67%-51.42%-10.17%-5.04%-57.58%758.72%

Growth

Compounded Sales Growth
10 Years:10%
5 Years:12%
3 Years:10%
TTM:10%
Compounded Profit Growth
10 Years:7%
5 Years:-12%
3 Years:-30%
TTM:54%
Stock Price CAGR
10 Years:27%
5 Years:13%
3 Years:6%
1 Year:56%
Return on Equity
10 Years:18%
5 Years:16%
3 Years:14%
Last Year:5%

Last Updated: April 13, 2024, 9:21 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital77714141414141414141414
Reserves2372472642493003674265545877308198141,089
Borrowings290437440433430433431367501618823829638
Other Liabilities185189217317346379433424522638705725696
Total Liabilities7198809291,0121,0901,1931,3041,3581,6242,0002,3612,3832,436
Fixed Assets2293193273333584524754656276158321,1261,095
CWIP172378158624482782854447
Investments000000001122146
Other Assets4735385946717167338228699481,1051,2431,2101,148
Total Assets7198809291,0121,0901,1931,3041,3581,6242,0002,3612,3832,436

Reserves and Borrowings Chart

Sudarshan Chemical Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 52254811216416314871263165180287
Cash from Investing Activity -87-120-28-61-83-135-87-27-220-266-308-189
Cash from Financing Activity 59101-48-43-81-38-62-48-39108138-103
Net Cash Flow237-278-0-10-2-3389-5

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-357.00-307.00-302.00-260.00-244.00-240.00-160.00-253.00-328.00-545.00-616.00-151.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days898985969298927978958377
Inventory Days159168144125113134131119154142163132
Days Payable877763949613912694139152150136
Cash Conversion Cycle162180166127109939610592859673
Working Capital Days99110102938671929473899281
ROCE %15%10%14%16%19%22%18%17%18%17%13%6%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters39.57%35.73%35.73%35.82%35.82%35.82%35.82%35.82%35.82%35.82%35.82%33.22%
FIIs8.80%9.38%8.49%7.93%6.03%4.16%2.81%3.12%3.49%4.65%4.22%4.50%
DIIs9.26%9.78%10.92%11.54%13.01%14.18%14.33%14.18%14.29%13.67%13.58%17.47%
Public42.37%45.11%44.86%44.71%45.14%45.84%47.05%46.87%46.41%45.86%46.37%44.81%
No. of Shareholders52,94271,12173,80271,24074,04975,76975,94672,94667,78968,05268,30168,607

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Axis Small Cap Fund2,440,6880.72133.992,440,6882024-06-180%
Mirae Asset Midcap Fund1,788,3330.7198.182,440,6882024-06-18-26.73%
ICICI Prudential Smallcap Fund1,540,1401.1984.552,440,6882024-06-18-36.9%
Mirae Asset Multicap Fund252,9970.6313.892,440,6882024-06-18-89.63%
Axis Multi Asset Allocation Fund195,3180.8710.722,440,6882024-06-18-92%
Axis Children's Gift Fund Compulsory Lock-in - Regular Plan61,8360.423.392,440,6882024-06-18-97.47%
Axis Children's Gift Fund No Lock-in - Regular Plan61,8360.423.392,440,6882024-06-18-97.47%
Motilal Oswal Nifty Microcap 250 Index Fund49,9220.442.742,440,6882024-06-18-97.95%
LIC MF Small Cap Fund9000.030.052,440,6882024-06-18-99.96%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)51.606.5018.8020.4020.88
Diluted EPS (Rs.)51.606.5018.7020.4020.88
Cash EPS (Rs.)72.0322.9731.6732.8831.50
Book Value[Excl.RevalReserv]/Share (Rs.)165.99119.64120.36107.4186.79
Book Value[Incl.RevalReserv]/Share (Rs.)165.99119.64120.36107.4186.79
Revenue From Operations / Share (Rs.)366.74332.50317.92269.28246.76
PBDIT / Share (Rs.)48.1831.1240.4242.5836.26
PBIT / Share (Rs.)27.7814.6227.5330.0825.64
PBT / Share (Rs.)67.978.6324.7227.5026.06
Net Profit / Share (Rs.)51.646.4718.7720.3820.88
NP After MI And SOA / Share (Rs.)51.646.4718.7720.3820.88
PBDIT Margin (%)13.139.3512.7115.8114.69
PBIT Margin (%)7.574.398.6511.1710.39
PBT Margin (%)18.532.597.7710.2110.56
Net Profit Margin (%)14.071.945.907.568.46
NP After MI And SOA Margin (%)14.071.945.907.568.46
Return on Networth / Equity (%)31.105.4015.5918.9724.05
Return on Capital Employeed (%)12.887.2314.5918.2019.82
Return On Assets (%)15.171.875.487.048.86
Long Term Debt / Equity (X)0.160.540.440.410.37
Total Debt / Equity (X)0.380.980.980.650.75
Asset Turnover Ratio (%)1.070.870.900.961.04
Current Ratio (X)1.381.171.131.201.18
Quick Ratio (X)0.870.670.600.720.61
Inventory Turnover Ratio (X)2.962.482.822.642.91
Dividend Payout Ratio (NP) (%)0.0077.3131.950.0058.91
Dividend Payout Ratio (CP) (%)0.0021.7718.940.0039.05
Earning Retention Ratio (%)0.0022.6968.050.0041.09
Cash Earning Retention Ratio (%)0.0078.2381.060.0060.95
Interest Coverage Ratio (X)9.045.1914.4116.4917.64
Interest Coverage Ratio (Post Tax) (X)2.152.087.698.909.99
Enterprise Value (Cr.)4605.333488.904384.534055.413025.30
EV / Net Operating Revenue (X)1.811.521.992.181.77
EV / EBITDA (X)13.8116.1915.6713.7612.05
MarketCap / Net Operating Revenue (X)1.661.171.641.931.52
Retention Ratios (%)0.0022.6868.040.0041.08
Price / BV (X)3.673.264.324.834.31
Price / Net Operating Revenue (X)1.661.171.641.931.52
EarningsYield0.080.010.030.030.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 1,015.55

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 15.93% compared to the current price 876

Intrinsic Value: 1,217.13

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 38.94% compared to the current price ₹876

Last 5 Year EPS CAGR: 19.85%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.42%, which is a positive sign.
  2. The company has higher reserves (541.00 cr) compared to borrowings (517.42 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (73.08 cr) and profit (148.83 cr) over the years.
  1. The stock has a high average Working Capital Days of 90.17, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 115.33, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Sudarshan Chemical Industries Ltd:
    1. Net Profit Margin: 14.07%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 12.88% (Industry Average ROCE: 6.59%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 31.10% (Industry Average ROE: 6.76%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.15
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.87
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 51.2 (Industry average Stock P/E: 65.42)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.38
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Sudarshan Chemical Industries Ltd. is a Public Limited Listed company incorporated on 19/02/1951 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24119PN1951PLC008409 and registration number is 008409. Currently Company is involved in the business activities of Manufacture of dyes and pigments from any source in basic form or as concentrate. Company’s Total Operating Revenue is Rs. 1918.91 Cr. and Equity Capital is Rs. 13.85 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Dyes & Pigments7th Floor, Eleven West Panchshil, Survey No. 25, Near PAN Card Club Road, Pune Maharashtra 411045grievance.redressal@sudarshan.com
http://www.sudarshan.com
Management
NamePosition Held
Mr. Pradeep R RathiChairman
Mr. Rajesh B RathiManaging Director
Mr. Ashish VijWhole Time Director
Mr. Anuj N RathiNon Exe.Non Ind.Director
Mr. Sanjay K AsherInd. Non-Executive Director
Mrs. Rathi F ForbesInd. Non-Executive Director
Mr. Dara N DamaniaInd. Non-Executive Director
Mr. Subramanian PadmanabhanInd. Non-Executive Director
Mr. Naresh T RaisinghaniInd. Non-Executive Director
Mrs. Shubhalakshmi A PanseInd. Non-Executive Director
Dr. Deepak ParikhInd. Non-Executive Director

FAQ

What is the latest fair value of Sudarshan Chemical Industries Ltd?

The latest fair value of Sudarshan Chemical Industries Ltd is ₹1015.55.

What is the Market Cap of Sudarshan Chemical Industries Ltd?

The Market Cap of Sudarshan Chemical Industries Ltd is 6,041 Cr..

What is the current Stock Price of Sudarshan Chemical Industries Ltd as on 21 June 2024?

The current stock price of Sudarshan Chemical Industries Ltd as on 21 June 2024 is ₹876.

What is the High / Low of Sudarshan Chemical Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Sudarshan Chemical Industries Ltd stocks is 903/437.

What is the Stock P/E of Sudarshan Chemical Industries Ltd?

The Stock P/E of Sudarshan Chemical Industries Ltd is 51.2.

What is the Book Value of Sudarshan Chemical Industries Ltd?

The Book Value of Sudarshan Chemical Industries Ltd is 166.

What is the Dividend Yield of Sudarshan Chemical Industries Ltd?

The Dividend Yield of Sudarshan Chemical Industries Ltd is 0.41 %.

What is the ROCE of Sudarshan Chemical Industries Ltd?

The ROCE of Sudarshan Chemical Industries Ltd is 11.8 %.

What is the ROE of Sudarshan Chemical Industries Ltd?

The ROE of Sudarshan Chemical Industries Ltd is 11.9 %.

What is the Face Value of Sudarshan Chemical Industries Ltd?

The Face Value of Sudarshan Chemical Industries Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sudarshan Chemical Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE