Mehabe score: 7 G Factor: 5 Piotski Score: 9 The stock has a rating . 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 5 and Piotski score of 9.
Description
Sumitomo Chemical India Ltd. (SCIL) is one of the leading players in the industry which has a balanced portfolio of technical as well as formulation products along with backward integration for some products. The Company is known for domestic marketing of proprietary products of its Japanese parent -Sumitomo Chemical Company Limited in agrochemicals, animal nutrition, and environmental health business segments. With the integration of Excel Crop Care Limited, the Company now has a strong portfolio of generics in addition to specialty products and a strong combined marketing network. With this integration, the Company has moved up several notches in the pecking order of the Indian crop protection industry. SCIL has also marked its presence in Africa and several other geographies of the world.
Main Points
Products
The Company has a presence in all product segments – insecticides, weedicides, fungicides, fumigants and rodenticides, plant growth nutrition products, bio-rationals, and plant growth regulators. It is also into animal nutrition and environmental health businesses; these are comparatively small businesses.Site:SUMICHEM
Market Cap:
Rs 19,222 cr
Price:
385.0
Trading pe:
56.6x
Book-value:
30.6/share
Div yield:
0.14 %
Earning yield:
2.46%
Face-value:
10.0/share
52week high:
403.40
52week low:
258.00
Technical Analysis
Stock trades at 385.0, above its 50dma 347.83. It also trades above its 200dma 306.99. The stock remains bullish on techicals
The 52 week high is at 403.40 and the 52week low is at 258.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has delivered good profit growth of 39.36% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 22.47%
Weakness
– Stock is trading at 12.58 times its book value
Competition
– The industry trades at a mean P/E of 30.8x. P I Industries trades at the industry’s max P/E of 62.21x. SUMICHEM trades at a P/E of 56.6x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 9.0. SUMICHEM has a G-Factor of 5 and Piotski scoreof 9.
– Average 1 month return for industry is 3.8%. The max 1- month return was given by P I Industries: a return of 13.1 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 534.0 cr compared to Rs 445.0 cr for period ended Mar 2020, a rise of 20.0%
Operating Profits reported at Rs 71.0 cr for period ended Mar 2021 vis-vis 41.0 for period ended Mar 2020 .
Operating Margins expanded 408.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.09 compared to Rs 1.09 for previous quarter ended Dec 2020 and Rs 0.46 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2643.0 cr for period ended Mar 2021 vis-vis sales of Rs 2423.0 cr for the period ended Mar 2020, a growth of 8.3%. The 3 year sales cagr stood at 11.4%.
Operating margins expanded to 18.0% for period ended Mar 2021 vis-vis 14.0% for period ended Mar 2020, expansion of 400.0 bps.
Net Profit reported at Rs 345.0 cr for period ended Mar 2021 vis-vis sales of Rs 206.0 cr for the period ended Mar 2020, rising 40.3%.
Company recorded a healthy Net Profit CAGR of 33.5% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 424.0 cr for period ended Mar 2021 vis-vis Rs 222.0 cr for period ended Mar 2020
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 25.0% compared to 23.0% over the last 3 Years. – The stock has given a return of 39% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 9% vis-vis a compounded sales growth of 11% over the last 3 Years. – The compounded profit growth on a TTM basis is 50% vis-vis a compounded profit growth of 33% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 1.12% vis-vis 1.15% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 17.59% vis-vis 17.24% for Dec 2020
Conclusion
– is almost debt free.
– has delivered good profit growth of 39.36% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 22.47% – Stock is trading at 12.58 times its book value
