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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Sumitomo Chemical India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:24 pm

Market Cap 25,483 Cr.
Current Price 510
High / Low628/336
Stock P/E52.7
Book Value 54.4
Dividend Yield0.18 %
ROCE20.8 %
ROE15.3 %
Face Value 10.0
PEG Ratio4.23

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Sumitomo Chemical India Ltd

Competitors of Sumitomo Chemical India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Epigral Ltd 8,306 Cr. 1,9292,408/88628.4 3370.26 %17.5 %16.9 % 10.0
Dharmaj Crop Guard Ltd 918 Cr. 273390/19722.7 1170.00 %14.5 %13.2 % 10.0
Bhaskar Agrochemicals Ltd 36.4 Cr. 69.8122/46.118.5 29.20.00 %14.7 %13.4 % 10.0
Bhagiradha Chemicals & Industries Ltd 3,841 Cr. 310448/117143 51.00.03 %9.69 %6.27 % 1.00
Best Agrolife Ltd 1,393 Cr. 590918/45437.8 3200.51 %16.5 %18.1 % 10.0
Industry Average11,925.47 Cr1,737.9741.23387.580.32%13.80%15.51%7.35

All Competitor Stocks of Sumitomo Chemical India Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales5347829107076649861,122753652724903540664
Expenses463631695580555798843632571643715475526
Operating Profit71150215127109188278121818118866139
OPM %13%19%24%18%16%19%25%16%12%11%21%12%21%
Other Income558157511131718252727
Interest1222111111111
Depreciation13111111111115111414161616
Profit before tax61143210129104180272121828319676149
Tax %12%26%26%24%28%23%26%25%12%26%27%27%26%
Net Profit54106155987513820291726214455109
EPS in Rs1.092.133.111.961.502.774.051.821.451.242.881.102.19

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales4956356717247991,9112,2232,4232,6433,0603,5112,833
Expenses4845876146356981,6911,9322,0882,1552,4582,8432,358
Operating Profit10485789101219291335488603668474
OPM %2%8%8%12%13%11%13%14%18%20%19%17%
Other Income338261031-0-2019364596
Interest021115577865
Depreciation0667724284147455261
Profit before tax134358107103221258267453586655503
Tax %0%23%40%40%40%34%35%23%24%26%23%27%
Net Profit1333356562145167206345434503370
EPS in Rs4.126.928.6910.097.41
Dividend Payout %0%0%0%0%0%0%38%18%12%12%12%80%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)153.85%6.06%85.71%-4.62%133.87%15.17%23.35%67.48%25.80%15.90%-26.44%
Change in YoY Net Profit Growth (%)0.00%-147.79%79.65%-90.33%138.49%-118.70%8.18%44.12%-41.68%-9.90%-42.34%

Sumitomo Chemical India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:16%
5 Years:5%
3 Years:2%
TTM:-1%
Compounded Profit Growth
10 Years:27%
5 Years:17%
3 Years:2%
TTM:31%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:11%
1 Year:33%
Return on Equity
10 Years:20%
5 Years:21%
3 Years:21%
Last Year:15%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:34 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital233233233233275275275499499499499499499
Reserves-70-36-2633606657617101,0291,4251,8811,9412,214
Borrowings100001020363338342524
Other Liabilities2022432342802886957918481,0971,0479558221,077
Total Liabilities3674404665769221,6441,8462,0932,6583,0093,3683,2873,814
Fixed Assets4847515253267279319309390430489491
CWIP000179810143571239
Investments00002772187291357239425624
Other Assets3193934155235851,3671,5581,6762,0432,2272,6282,3512,691
Total Assets3674404665769221,6441,8462,0932,6583,0093,3683,2873,814

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-1620452-214975222424223389756
Cash from Investing Activity +-1-8-8-5-289-40-35-118-282-281-327-426
Cash from Financing Activity +0-10-02767-65-61-47-63-73-331
Net Cash Flow-1711-447-3416-264395-120-10-1

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow9.0048.0057.0089.00101.00209.00271.00299.00455.00565.00634.00449.00

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days969083921011051101281171019891
Inventory Days125135169191202193133185198157135
Days Payable1341091321151761361121451108796
Cash Conversion Cycle9681109130177131167150157189168131
Working Capital Days6258697911311511911197128138175
ROCE %8%25%27%41%22%29%27%26%33%34%30%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%
FIIs1.32%1.36%1.69%1.90%2.05%2.44%2.40%2.51%2.58%2.61%2.74%3.06%
DIIs6.13%6.17%6.36%6.70%6.39%5.52%5.50%5.50%6.06%6.02%6.63%7.13%
Public17.55%17.47%16.95%16.40%16.54%17.02%17.09%16.96%16.33%16.35%15.61%14.79%
No. of Shareholders1,19,5611,50,5891,39,6011,33,6581,46,0631,44,0181,42,5961,56,1361,47,9071,45,0831,48,7641,28,148

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
360 ONE Focused Equity Fund3,623,6372.38146.412,106,6002024-11-2072.01%
Axis Midcap Fund2,222,6460.3789.812,106,6002024-11-205.51%
HSBC Small Cap Fund - Regular Plan2,106,6000.6485.122,106,6002024-11-200%
Axis Growth Opportunities Fund1,859,6820.775.142,106,6002024-11-20-11.72%
PGIM India Midcap Opportunities Fund1,578,2980.6363.772,106,6002024-11-20-25.08%
ICICI Prudential MidCap Fund1,063,4530.8442.972,106,6002024-11-20-49.52%
Tata Ethical Fund - Regular Plan797,2001.4732.212,106,6002024-11-20-62.16%
Aditya Birla Sun Life MNC Fund - Div647,2840.7326.152,106,6002024-11-20-69.27%
Aditya Birla Sun Life MNC Fund - Gr647,2840.7326.152,106,6002024-11-20-69.27%
ICICI Prudential Manufacturing Fund508,2580.920.542,106,6002024-11-20-75.87%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)7.4010.068.496.924.10
Diluted EPS (Rs.)7.4010.068.496.924.10
Cash EPS (Rs.)8.6511.109.387.854.92
Book Value[Excl.RevalReserv]/Share (Rs.)48.9747.7238.6130.8824.48
Book Value[Incl.RevalReserv]/Share (Rs.)48.9747.7238.6130.8824.48
Revenue From Operations / Share (Rs.)56.9870.3461.4052.9948.58
PBDIT / Share (Rs.)11.4214.2512.5610.136.89
PBIT / Share (Rs.)10.1813.2111.669.196.07
PBT / Share (Rs.)10.0813.1111.539.085.34
Net Profit / Share (Rs.)7.4110.068.486.924.10
NP After MI And SOA / Share (Rs.)7.4010.068.486.924.10
PBDIT Margin (%)20.0520.2620.4519.1014.18
PBIT Margin (%)17.8618.7818.9817.3412.49
PBT Margin (%)17.6818.6318.7817.1310.99
Net Profit Margin (%)13.0014.3013.8213.058.44
NP After MI And SOA Margin (%)12.9914.3013.8213.058.44
Return on Networth / Equity (%)15.1321.0821.9722.4016.75
Return on Capital Employeed (%)20.2227.0729.2628.8423.92
Return On Assets (%)11.1514.9014.0712.939.71
Asset Turnover Ratio (%)0.851.101.081.111.23
Current Ratio (X)3.342.992.472.142.08
Quick Ratio (X)2.582.031.551.441.38
Inventory Turnover Ratio (X)1.882.032.182.332.03
Dividend Payout Ratio (NP) (%)83.749.939.427.9510.52
Dividend Payout Ratio (CP) (%)71.689.008.527.008.76
Earning Retention Ratio (%)16.2690.0790.5892.0589.48
Cash Earning Retention Ratio (%)28.3291.0091.4893.0091.24
Interest Coverage Ratio (X)111.66131.90101.6290.9962.38
Interest Coverage Ratio (Post Tax) (X)73.4094.1169.6863.1843.73
Enterprise Value (Cr.)17160.4920923.3422359.9914273.209063.32
EV / Net Operating Revenue (X)6.035.967.305.403.74
EV / EBITDA (X)30.0929.4135.6828.2426.36
MarketCap / Net Operating Revenue (X)6.106.057.325.493.78
Retention Ratios (%)16.2590.0690.5792.0489.47
Price / BV (X)7.108.9111.649.427.50
Price / Net Operating Revenue (X)6.106.057.325.493.78
EarningsYield0.020.020.010.020.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Sumitomo Chemical India Ltd as of November 21, 2024 is: 439.42

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.

As of November 21, 2024, Sumitomo Chemical India Ltd is Overvalued by 13.84% compared to the current share price 510.00

Intrinsic Value of Sumitomo Chemical India Ltd as of November 21, 2024 is: 494.16

Calculation basis:

  • Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Sumitomo Chemical India Ltd is Overvalued by 3.11% compared to the current share price 510.00

Last 5 Year EPS CAGR: 12.46%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 26.92%, which is a positive sign.
  2. The company has higher reserves (841.62 cr) compared to borrowings (17.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (278.25 cr) and profit (272.25 cr) over the years.
  1. The stock has a high average Working Capital Days of 105.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 140.50, 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 Sumitomo Chemical India Ltd:
    1. Net Profit Margin: 13%
      • 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: 20.22% (Industry Average ROCE: 13.8%)
      • 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%: 15.13% (Industry Average ROE: 15.51%)
      • 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): 73.4
      • 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: 2.58
      • 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: 52.7 (Industry average Stock P/E: 30.47)
      • 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
      • 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 - Qualitative Analysis

Sumitomo Chemical India Ltd. is a Public Limited Listed company incorporated on 15/02/2000 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24110MH2000PLC124224 and registration number is 124224. Currently Company is involved in the business activities of Manufacture of pesticides and other agrochemical products. Company’s Total Operating Revenue is Rs. 3063.57 Cr. and Equity Capital is Rs. 499.15 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Agro Chemicals/PesticidesBldg. No. 1, Ground Floor, Shant Manor Co-op Housing Society Ltd., Mumbai Maharashtra 400101investor.relations@sumichem.co.in
http://www.sumichem.co.in
Management
NamePosition Held
Mr. Mukul G AsherChairman
Mr. Chetan ShahManaging Director
Mr. Sushil MarfatiaExecutive Director
Dr. Suresh RamachandranWhole Time Director
Mr. B V BhargavaIndependent Director
Mrs. Preeti MehtaIndependent Director
Mr. Ninad D GupteNon Exe.Non Ind.Director
Mr. Masanori UzawaNon Exe.Non Ind.Director
Mr. Tadashi KatayamaNon Exe.Non Ind.Director

FAQ

What is the latest intrinsic value of Sumitomo Chemical India Ltd?

The latest intrinsic value of Sumitomo Chemical India Ltd as on 21 November 2024 is ₹439.42, which is 13.84% lower than the current market price of ₹510.00.

What is the Market Cap of Sumitomo Chemical India Ltd?

The Market Cap of Sumitomo Chemical India Ltd is 25,483 Cr..

What is the current Stock Price of Sumitomo Chemical India Ltd as on 21 November 2024?

The current stock price of Sumitomo Chemical India Ltd as on 21 November 2024 is ₹510.

What is the High / Low of Sumitomo Chemical India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Sumitomo Chemical India Ltd stocks is 628/336.

What is the Stock P/E of Sumitomo Chemical India Ltd?

The Stock P/E of Sumitomo Chemical India Ltd is 52.7.

What is the Book Value of Sumitomo Chemical India Ltd?

The Book Value of Sumitomo Chemical India Ltd is 54.4.

What is the Dividend Yield of Sumitomo Chemical India Ltd?

The Dividend Yield of Sumitomo Chemical India Ltd is 0.18 %.

What is the ROCE of Sumitomo Chemical India Ltd?

The ROCE of Sumitomo Chemical India Ltd is 20.8 %.

What is the ROE of Sumitomo Chemical India Ltd?

The ROE of Sumitomo Chemical India Ltd is 15.3 %.

What is the Face Value of Sumitomo Chemical India Ltd?

The Face Value of Sumitomo Chemical India Ltd is 10.0.

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 Sumitomo Chemical India 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