About Company: Sudarshan Chemicals Limited is a globally renowned player in the Pigment
Industry and manufactures a wide range of Organic and Inorganic Pigments,
Effect Pigments, Agro Chemicals and other products with facilities at Roha and
Mahad, Dist. Raigad, Maharashtra. The Company has also set up an ultra modern
R&D Facility at Ambedvet (Sutarwadi), Pune, India.
Company also has subsidiaries in Netherland and America .
Business Outlook: Product of company has increasing application in
industries such as paints. Plastics, inks, cosmetics and textiles etc.90% of
revenue comes from pigment division and 10% revenue comes from agro chemicals. Both
the divisions are doing well though agrochemicals is dependent upon mansoon
pigment division is expected to do well on increase in demand and exports. Also
lower crude will help to reduce raw material cost and improving margins which
is visible in the financial performance of 2015-16 so far.
Financials Of Company:
|
|
2016-YTD-Dec-15
|
2015
|
2014
|
2013
|
2012
|
2011
|
|
Revenue
|
890
|
1,088.29
|
1,026.65
|
785.25
|
744.23
|
706.93
|
|
Other Income
|
3.29
|
23.03
|
4.73
|
11.5
|
7.98
|
5.08
|
|
Total Income
|
893.29
|
1,111.32
|
1,031.38
|
796.76
|
752.22
|
712.02
|
|
Expenditure
|
-775
|
-979.14
|
-903.6
|
-715.49
|
-663.57
|
-608.95
|
|
Interest
|
-18.7
|
-32.81
|
-37.6
|
-31.18
|
-21.31
|
-10.66
|
|
PBDT
|
99.59
|
99.37
|
90.18
|
50.09
|
67.33
|
92.41
|
|
Depreciation
|
-31.06
|
-39.75
|
-35.35
|
-25.04
|
-17.15
|
-13.21
|
|
PBT
|
68.53
|
59.62
|
54.83
|
25.05
|
50.19
|
79.19
|
|
Tax
|
-17.6
|
-17.21
|
-20.41
|
-4
|
-14.03
|
-23.38
|
|
Net Profit
|
50.93
|
42.41
|
34.42
|
21.06
|
36.15
|
55.81
|
|
Equity(Share FV@Rs2)
|
13.85
|
13.85
|
6.92
|
6.92
|
6.92
|
6.92
|
|
EPS
|
7.35
|
6.13
|
49.72
|
30.41
|
52.22
|
80.62
|
|
CEPS
|
|
11.87
|
100.78
|
66.58
|
76.99
|
--
|
|
OPM %
|
11.19%
|
12.15
|
12.45
|
10.35
|
11.91
|
14.58
|
|
NPM %
|
5.72%
|
3.9
|
3.35
|
2.68
|
4.86
|
7.89
|
|
Dividend(Rs)
|
|
4.25
|
3
|
2.5
|
2.5
|
2.5
|
Investment Positives:
1.
Consistent profit making and Dividend
paying company since last 5 years
2.
DIC Japan has 8 % stake in equity
3.
Already achieved turnover of 890
crores in FY-2015-2016 YTD-Q-3 with NP of 51 crores.
4.
Company is expected to announce the results and
dividend on 27-5-2017 and I expect it to be better based upon 9 month
performance shared in the financials.
Target price: Share is available at CMP of Rs 112-116 at PE multiple of 13-14 .Good promoter and 8%
equity stake by DIC reflects strong business model .Based upon the historical performance
and improvement in NP margins it can easily achieve EPS of 10 in year 2016-17
so stock is currently available at forward PE of multiple of 10 which is cheap
it can easily touch Rs 150 in one year time frame. Long term investor can
invest at CMP of Rs 112-116 for 30% returns in one year.
Disclosure: I am personally holding shares of the company.
Waiting for report, pls post the same... Thanks
ReplyDeleteIt has touched the 150 target. Should we hold on to it? Or it's time we exit?
ReplyDeleteYou may sell since target is achieved sooner then expected
ReplyDeletehi
ReplyDeletecan we enter sudarshan chemicals at rs 370
for long term
madhusudanrao
Dear Madhu, Please hold fresh investment at current high levels in Sudarshan Chemicals.You may invest at Asahi Songwon at current levels of 175-178 instead for decent returns in long run.
Delete