Mehabe score: 5 G Factor: 4 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 7.
Description
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.(Source : 202003 Annual Report Page No:203)Site:SUDARSCHEMMain Symbol:SUDARSCHEM
Stock trades at 751.0, above its 50dma 689.34. It also trades above its 200dma 575.33. The stock remains bullish on techicals
The 52 week high is at 794.00 and the 52week low is at 382.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– has been maintaining a healthy dividend payout of 30.13%
Weakness
– The company has delivered a poor sales growth of 5.88% over past five years.
– might be capitalizing the interest cost
-Promoter holding has decreased over last 3 years: -12.86%
Competition
– The industry trades at a mean P/E of 25.8x. Atul trades at the industry’s max P/E of 43.16x. SUDARSCHEM trades at a P/E of 36.9x
– Industry’s mean G-Factor is 4.3 while the mean Piotski score is 7.0. SUDARSCHEM has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 9.5%. The max 1- month return was given by Vidhi Specialty: a return of 22.54 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 577.0 cr compared to Rs 449.0 cr for period ended Mar 2020, a rise of 28.5%
Operating Profits reported at Rs 87.0 cr for period ended Mar 2021 vis-vis 54.0 for period ended Mar 2020 .
Operating Margins expanded 305.1 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 7.72 compared to Rs 5.66 for previous quarter ended Dec 2020 and Rs 3.94 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1864.0 cr for period ended Mar 2021 vis-vis sales of Rs 1708.0 cr for the period ended Mar 2020, a growth of 8.4%. The 3 year sales cagr stood at 11.9%.
Net Profit reported at Rs 141.0 cr for period ended Mar 2021 vis-vis sales of Rs 145.0 cr for the period ended Mar 2020, falling 2.8%.
Company recorded a healthy Net Profit CAGR of 18.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 21.0% compared to 20.0% over the last 3 Years. – The stock has given a return of 92% on a 1 Year basis vis-vis a return of 19% over the last 3 Years. – The compounded sales growth on a TTM bassis is 9% vis-vis a compounded sales growth of 12% over the last 3 Years. – The compounded profit growth on a TTM basis is 8% vis-vis a compounded profit growth of 18% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 9.37% vis-vis 9.31% for Dec 2020 – Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 41.59% vis-vis 43.91% for Dec 2020
Conclusion
– has been maintaining a healthy dividend payout of 30.13% – The company has delivered a poor sales growth of 5.88% over past five years.
– might be capitalizing the interest cost
-Promoter holding has decreased over last 3 years: -12.86%
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 689.34 and is trading at 751.0, thus bullish price action wise.
