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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sumitomo Chemical India Ltd

About the Company - Sumitomo Chemical India Ltd

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
Mr. Suresh RamachandranWhole Time Director & CMO
Mr. B V BhargavaDirector
Mr. Ninad D GupteDirector
Ms. Preeti MehtaDirector
Mr. Masanori UzawaDirector

Sumitomo Chemical India Ltd. Share Price Update

Share PriceValue
Today₹380.70
Previous Day₹379.25

Basic Stock Data of Sumitomo Chemical India Ltd

Market Cap 18,778 Cr.
Current Price 376
High / Low476/370
Stock P/E56.4
Book Value 50.6
Dividend Yield0.32 %
ROCE30.2 %
ROE23.4 %
Face Value 10.0

Data Source: screener.in

Competitors of Sumitomo Chemical India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
NACL Industries Ltd 1,468 Cr. 73.7105/67.8 26.90.93 %15.2 %18.0 % 1.00
PI Industries Ltd (PIIND) 55,749 Cr. 3,6744,011/2,86935.0 5260.27 %21.7 %18.5 % 1.00
Adarsh Plant Protect Ltd 27.7 Cr. 28.033.5/15.086.6 1.080.00 %5.44 %15.6 % 10.0
Rallis India Ltd 4,683 Cr. 241274/18647.2 93.90.00 %7.77 %5.37 % 1.00
Meghmani Organics Ltd 2,212 Cr. 87.099.8/71.7 62.31.62 %16.1 %14.2 % 1.00
Industry Average17.94 Cr86.5433.76142.040.56%13.24%14.33%2.8

Sumitomo Chemical India Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales9035605347829107076649861,122753652724903
Expenses683482463631695580555798843632571643715
Operating Profit22078711502151271091882781218181188
OPM %24%14%13%19%24%18%16%19%25%16%12%11%21%
Other Income6655815751113171825
Interest2112221111111
Depreciation11111311111111111511141416
Profit before tax21371611432101291041802721218283196
Tax %26%24%12%26%26%24%28%23%26%25%12%26%27%
Net Profit15854541061559875138202917262144
EPS in Rs3.171.091.092.133.111.961.502.774.051.821.451.242.88

Sumitomo Chemical India Ltd Quarterly Chart

Sumitomo Chemical India Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4514956356717247991,9112,2232,4232,6433,0603,5113,032
Expenses4634845876146356981,6911,9322,0882,1552,4582,8432,562
Operating Profit-1210485789101219291335488603668470
OPM %-3%2%8%8%12%13%11%13%14%18%20%19%16%
Other Income1338261031-0-2019364572
Interest0021115577865
Depreciation00667724284147455255
Profit before tax-11134358107103221258267453586655482
Tax %0%0%23%40%40%40%34%35%23%24%26%23%
Net Profit-111333356562145167206345434503369
EPS in Rs4.126.928.6910.097.39
Dividend Payout %0%0%0%0%0%0%0%38%18%12%12%12%

Sumitomo Chemical India Ltd Profit & Loss Yearly Chart

Sumitomo Chemical India Ltd Growth

Compounded Sales Growth
10 Years:22%
5 Years:13%
3 Years:13%
TTM:-20%
Compounded Profit Growth
10 Years:44%
5 Years:28%
3 Years:31%
TTM:-34%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:8%
1 Year:-18%
Return on Equity
10 Years:22%
5 Years:23%
3 Years:24%
Last Year:23%

Sumitomo Chemical India Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital233233233233233275275275499499499499499
Reserves-82-70-36-2633606657617101,0291,4251,8812,025
Borrowings01000010203633383429
Other Liabilities2082022432342802886957918481,0971,047955974
Total Liabilities3593674404665769221,6441,8462,0932,6583,0093,3693,528
Fixed Assets534847515253267279319309390430501
CWIP000017981014357123
Investments000002772187291357239587
Other Assets3063193934155235851,3671,5581,6762,0432,2272,6282,416
Total Assets3593674404665769221,6441,8462,0932,6583,0093,3693,528

Sumitomo Chemical India Ltd Reserves and Borrowings Chart

Sumitomo Chemical India Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 75-1620452-214975222424223389
Cash from Investing Activity -2-1-8-8-5-289-40-35-118-282-281-327
Cash from Financing Activity -490-10-02767-65-61-47-63-73
Net Cash Flow24-1711-447-3416-264395-120-10

Sumitomo Chemical India Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days1059690839210110511012811710198
Inventory Days125135169191202193133185198157
Days Payable13410913211517613611214511087
Cash Conversion Cycle1059681109130177131167150157189168
Working Capital Days426258697911311511911197128138
ROCE %-8%8%25%27%41%22%29%27%26%33%34%30%

Sumitomo Chemical India Ltd Financial Efficiency Indicators Chart

Sumitomo Chemical India Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%
FIIs1.12%1.22%1.32%1.36%1.69%1.90%2.05%2.44%2.40%2.51%2.58%2.61%
DIIs6.29%6.57%6.13%6.17%6.36%6.70%6.39%5.52%5.50%5.50%6.06%6.02%
Public17.59%17.21%17.55%17.47%16.95%16.40%16.54%17.02%17.09%16.96%16.33%16.35%
No. of Shareholders73,32778,6511,19,5611,50,5891,39,6011,33,6581,46,0631,44,0181,42,5961,56,1361,47,9071,45,083

Sumitomo Chemical India Ltd Shareholding Pattern Chart

No. of Sumitomo Chemical India Ltd Shareholders

Sumitomo Chemical India Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
360 ONE Focused Equity Fund36236372.38146.41
Axis Midcap Fund22226460.3789.81
HSBC Small Cap Fund - Regular Plan21066000.6485.12
Axis Growth Opportunities Fund18596820.775.14
PGIM India Midcap Opportunities Fund15782980.6363.77
ICICI Prudential MidCap Fund10634530.8442.97
Tata Ethical Fund - Regular Plan7972001.4732.21
Aditya Birla Sun Life MNC Fund - Div6472840.7326.15
Aditya Birla Sun Life MNC Fund - Gr6472840.7326.15
ICICI Prudential Manufacturing Fund5082580.920.54

Sumitomo Chemical India Ltd ROCE Trend

Sumitomo Chemical India Ltd EPS Trend

Sumitomo Chemical India Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)10.068.496.924.103.32
Diluted EPS (Rs.)10.068.496.924.103.32
Cash EPS (Rs.)11.109.387.854.927.05
Book Value[Excl.RevalReserv]/Share (Rs.)47.7238.6130.8824.4830.00
Book Value[Incl.RevalReserv]/Share (Rs.)47.7238.6130.8824.4830.00
Revenue From Operations / Share (Rs.)70.3461.4052.9948.5881.16
PBDIT / Share (Rs.)14.2512.5610.136.8910.86
PBIT / Share (Rs.)13.2111.669.196.079.85
PBT / Share (Rs.)13.1111.539.085.349.46
Net Profit / Share (Rs.)10.068.486.924.106.04
NP After MI And SOA / Share (Rs.)10.068.486.924.106.04
PBDIT Margin (%)20.2620.4519.1014.1813.38
PBIT Margin (%)18.7818.9817.3412.4912.13
PBT Margin (%)18.6318.7817.1310.9911.66
Net Profit Margin (%)14.3013.8213.058.447.44
NP After MI And SOA Margin (%)14.3013.8213.058.447.44
Return on Networth / Equity (%)21.0821.9722.4016.7520.12
Return on Capital Employeed (%)27.0729.2628.8423.9225.07
Return On Assets (%)14.9014.0712.939.718.91
Total Debt / Equity (X)0.000.000.000.000.02
Asset Turnover Ratio (%)1.101.081.111.231.27
Current Ratio (X)2.992.472.142.081.97
Quick Ratio (X)2.031.551.441.381.10
Inventory Turnover Ratio (X)2.032.182.332.032.06
Dividend Payout Ratio (NP) (%)9.939.427.9510.5235.61
Dividend Payout Ratio (CP) (%)9.008.527.008.7630.50
Earning Retention Ratio (%)90.0790.5892.0589.4864.39
Cash Earning Retention Ratio (%)91.0091.4893.0091.2469.50
Interest Coverage Ratio (X)131.90101.6290.9962.3881.71
Interest Coverage Ratio (Post Tax) (X)94.1169.6863.1843.7348.33
Enterprise Value (Cr.)20923.3422359.9914273.209063.320.00
EV / Net Operating Revenue (X)5.967.305.403.740.00
EV / EBITDA (X)29.4135.6828.2426.360.00
MarketCap / Net Operating Revenue (X)6.057.325.493.780.00
Retention Ratios (%)90.0690.5792.0489.4764.38
Price / BV (X)8.9111.649.427.500.00
Price / Net Operating Revenue (X)6.057.325.493.780.00
EarningsYield0.020.010.020.020.00

Sumitomo Chemical India Ltd Profitability Ratios (%)

Sumitomo Chemical India Ltd Liquidity Ratios

Sumitomo Chemical India Ltd Liquidity Ratios (%)

Sumitomo Chemical India Ltd Interest Coverage Ratios (X)

Sumitomo Chemical India Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sumitomo Chemical India Ltd

Fair Value: ₹669.94

The stock is undervalued by 78.17% compared to the current price ₹376

*Investments are subject to market risks

Strength and Weakness of Sumitomo Chemical India Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 24.50%, which is a positive sign.
  2. The company has higher reserves (671.46 cr) compared to borrowings (15.46 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (291.62 cr) and profit (248.85 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 10.00 and average Dividend Yield of 15.94%.
  2. The stock has a high average Working Capital Days of 94.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 138.33, which may not be favorable.

Should I Buy Sumitomo Chemical India Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sumitomo Chemical India Ltd:
    1. Net Profit Margin: 14.30%
      • 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: 27.07% (Industry Average ROCE: 19.05%)
      • 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. Interest Coverage Ratio (Post Tax): 94.11
      • 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.
    4. Quick Ratio: 2.03
      • 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.
    5. ✗ Stock P/E: 56.3 (Industry average Stock P/E: 19.66)
      • 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.
    6. ✓ Total Debt / Equity: 0.00
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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