Sudarshan
Chemical Industries Ltd (506655) closes at ₹669.25 with
a Fall of -0.20%% on
01-June-2021 with formation of a Small Red
Candle on Daily Price Chart.
About the Company : Sudarshan
Chemical Industries manufactures and sells a wide range of Organic and
Inorganic Pigments, Effect Pigments. The Group also manufactures Pollution
Control Equipment, Size Reduction Equipment and Grinding Equipments for
industrial applications
Strength : Two major global players shifting away from the pigment business could act as a tailwind for ndian pigment manufacturers
Financials : Sudarshan Chemical Industries Ltd has posted Net Sales /
Revenue of ₹ 1864.10 Cr & Net Profit of ₹141.10Cr in FY2021 and expected to post
Net Sales / Revenue of ₹2163.10 Cr & Net Profit
of ₹161.70 Cr in FY2022 & Net
Sales / Revenue of ₹2477.50 Cr & Net Profit
of ₹201.80 Cr in FY2023
Valuations : The Company is now Trading at X 2.0 of its valuations
of its FY2021 earnings with ~100% Premium and X1.72 of its FY2022 earnings with
~70% premium and X1.38 of its FY2023 earnings with ~38% premium.
Margin of Safety (1Yr Bond Yield: Value>1 ) is now -0.8
which makes is attractive after a
~20% fall in market price. The Equity Value Per Share ( Enterprise Value Method ) is ₹665.80.
Latest Management Update : Exports accounted for 49 per cent of revenues for the pigment segment; Specialty pigments constituted 68 per cent of the revenues for pigment segment in Q4; The company’s Capex is planned to build and concentrate onincreasing specialty pigments in its mix; It is about to finish its Capex plan of ₹600 crore in FY22; Sales from the total Capex will ramp up gradually over 34 years. This Capex has a revenue potential ₹1,0001,200 crore at full capacity. Additional Capex for FY22 is ₹135 crore, which will be used to build infrastructure; and raw material price inflation is about 22.5 per cent.
If We factor its FY2023 earnings/valuations, its Price arrives at ₹970.00
Disclaimer : We are / may going to take exposure shortly.
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Data
Source | NSE Website | Screener.In | Capital
Line | Money
Control |
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