Sudarshan Chemical Industries Share Price

1. For the quarter ended on June 30, 2018, Sudarshan Chemical Industries Limited reported its total income to be at Rs.346.6 crore - a marginal growth of close to 5% over the same quarter last year. However, with respect to the revenue reported for the March quarter, the figure is down by close to Rs.43 crore.
2. As for the expenditure, on a YoY basis, it increased marginally by Rs.10 crore with the final figure standing at Rs.307.3 crore.
3. Consequently, the pigment manufacturer revealed its profit before taxes to be at Rs.39.3 crore - as against Rs.33.2 crore. After taxation, the net profit of Sudarshan Chemical Limited for the June quarter was Rs.95.1 crore, in comparison to Rs.23.4 crore for the corresponding quarter of the previous year.
4. The company received a boost in its profitability on account of its divestment of the holdings in its wholly owned subsidiary. Consequently, its basic earnings per share (EPS) rose from Rs.3.4 to Rs.13.7, YoY.

Sudarshan Chemical Industries Limited Stock Trends in 2018

1. On January 2, 2018, the opening share price of Sudarshan Chemical Industries Limited was Rs.389 on the National Stock Exchange. Over the course of the first week of January, the scrip gained close to 15% to cross the Rs.450 mark and for the remainder of the month, the shares were traded at levels above Rs.450.
2. In February, the shares shed marginally to descend below the Rs.430 mark driven by uncertainties and turbulence in the international markets. In the same month, the company announced an interim dividend of 125%. This announcement helped the shares hold steady at levels above Rs.400. Things stayed this way through most of March as well.
3. The month of April proved to be a landmark one for the Sudarshan Chemical Industries shareholders. In a span of little over three weeks, the shares gained as much as 40% to cross the Rs.570 mark. Through the second half of April to the first week of May, the stock price remained afloat above the Rs.570 mark. In the same period, the scrip also reached its 52-week high at Rs.634.60 on the NSE.
4. This meteoric rise was followed by a sharp nosedive through the course of May. The stocks lost their gains just as quickly as it made them. By late May, the shares were back to their previous levels at Rs.480, losing as much as 20% after peaking in April. However, unlike other shares in that period, this fall didn't imply the start of a bear run for Sudarshan Chemical scrip.
5. Through the months of June, July, and August, the stocks were traded at levels varying from Rs.430 to Rs.470. In July, the company announced a final dividend of 50%. It wasn't until September that the scrip finally started to go down gradually. In the final week of the month, the shares took a sharp fall and lost 15% to slip into the Rs.350 region. The shares also hit their 52-week low at Rs.315.25.
6. The stocks recovered marginally in October and as of second half, they were being traded at levels close to Rs.370.

Sudarshan Chemical Industries Limited Stock Trends in 2016 and 2017

1. At the start of 2016, the Sudarshan Chemical share price was seen varying at levels close to Rs.100. Over the course of the first quarter of the calendar year, the shares lost marginally to slip into the Rs.80 region. The shares managed to recover in the months of April and May and eventually, the price moved past the Rs.120 mark.
2. The scrip commenced a bull run in the month of June and eventually moved on to make exponential gains over the course of the next few months. In June, the shares crossed the psychologically important mark of Rs.200 and by the end of July, the same was up into the Rs.300 region.
3. Over the course of the last two months, the shares had gained as much as 200%. In the same period, the company announced a final dividend of 25%. The scrip continued to exhibit its bullish trend well in the month of August as well and eventually, it the Rs.370 mark.
4. Things changed considerably post demonetisation as the shares lost close to 30% to slip into the Rs.200 region. For the remainder of the year, the scrip maintained its position above the Rs.200 mark, with the closing price on December 29, 2016, being Rs.317.17.
5. 2017 was a flat year for the Sudarshan Chemical Industries share price. The scrip commenced the year trading at levels close to Rs.320 and the same, by February, had gained marginally to cross the Rs.350 mark. In the same month, the company announced an interim dividend of 125%.
6. Things didn't change considerably through the months of March, April, and May. The shares continued to make marginal gains and eventually, they found themselves being traded in the Rs.370 region. It was not until the month of July that the shares crossed the Rs.400 mark, driven by positive developments and the announcement of a final dividend of 50%.
7. However, by early August, the scrip had shed its recently earned gains to descend back into the Rs.370 region. For the remainder of the year, the stock price of Sudarshan Chemical Industries Limited remained below the Rs.400 mark. The shares found stability at levels varying from Rs.360 - Rs.380, without incurring any sharp rises or drops.

Should You Invest in Sudarshan Chemical Industries Limited?

1. Sudarshan Chemical Industries Limited is a manufacturer of pigments and intermediates. The company has been around for close to 60 years in the country and manufacturers pigments for coatings, print inks, cosmetics, and plastics. It has two production facilities in Roha and Mahad in India.
2. Considering the financial performance of the company, for the year ended on March 31, 2018, Sudarshan Chemical Industries reported its consolidated sales to be at Rs.1,489 crore as against Rs.1,396.6 crore.
3. As for the profitability of the company, its net profit after taxation for the FY 2017-18 was reported to be at Rs.84.7 crore as against Rs.101.3 crore for the previous year. The profit declined YoY on account of an increase in the overall expenses for the period.
4. As for the performance of the stock, the scrip had a phenomenal run in 2016, gaining as much as 250% over the course of the year. In 2017, the shares found some stability at levels varying from Rs.360 - Rs.380. In 2018, however, things have been fairly different owing to market uncertainties and international developments. As a result, the shares have been highly volatile. In terms of dividends, the company has been highly generous and has given out a couple of dividends every year.
5. From a long-term perspective, the scrip makes for an attractive buy. However, its liabilities are slightly on the higher side, the majority of which are related to tax. In comparison to its peers, the company is performing quite well. However, before investing in this stock, it is strongly recommended that you research thoroughly.

Company Information

Sudarshan Chemical Industries Limited is a leading manufacturer of colour and effect pigments in India. Headquartered in Pune, the company manufactures pigments for various industrial applications like coatings, plastics, print inks, and cosmetics. The company is active in more than 85 countries and presently employs more than 2,000 people.

History of the Company

Sudarshan Chemical Industries Limited was incorporated in 1952 with head office in Pune as a private limited company. The company began its operations with a very limited portfolio of organic and inorganic pigments and intermediates. It focused on consolidated its position in the domestic market for the next three decades and set up manufacturing units in Roha and Pune. Starting in 1989, Sudarshan Chemical Industries underwent a thorough phase of expansion which saw its technical capabilities and infrastructure improve massively. It also started a new manufacturing unit in Mahad to focus on effect pigment, phthalocyanines, and organic pigments. In 2006, the company entered the European and American markets with a world-class portfolio of high-performance pigments and cosmetics pigments.

Management of the Company

Mr. Pradeep Rathi - Chairman

Mr. Pradeep Rathi presently serves as the Non-Executive Chairman of the Board at Sudarshan Chemical Industries. Prior to this, he served as the Managing Director of the company for more than a decade - from May 2007 to June 2018. He has also served as the company's Chief Executive Officer and Vice Chairman. Mr. Rathi has been associated with various reputed companies like Rathi Steel and Power Limited, Finolex Cables Limited, Sanghvi Movers Limited, Rieco Industries Limited, Videocon d2h Limited, and many more. He held upper-level management positions in all of these companies. Mr. Rathi holds a Masters' degree in Chemical Engineering from MIT, USA, and an MBA from Columbia University, USA.

Mr. Rajesh Rathi - Managing Director

Mr. Rajesh Rathi presently serves as the Managing Director of Sudarshan Chemical Industries. He has held this position since June 2018 and additionally, he serves as the company's BR Head and an Executive Director. Before accepting his current responsibilities, he served as the Vice President of Pigment Division of the company. Mr. Rajesh Rathi has been a part of Sudarshan Chemical Industries since October 1992. He obtained his Bachelors' degree in Mechanical Engineering from MIT, Pune. He also holds a B.Sc. in Chemical Engineering from Ohio State University, USA, and an MBA from Pittsburgh University, USA.

Mrs. Rati F. Forbes - Non-Executive Independent Director

Mrs. Rati F. Forbes is currently the Non-Executive Independent Director of Sudarshan Chemical Industries Limited. In addition to this, she is also associated with Automotive Samplings & Assemblies Limited in the capacity of Non-Executive Independent Director. She has also been on the Board of Forbes Marshall Private Limited since 1999. She graduated in psychology and sociology from Bombay University and followed it with special courses on human resources, philanthropy, social entrepreneurship, et cetera.

Sudarshan Chemical Industries Limited Listings in NSE, BSE, and Indices

The equity shares of Sudarshan Chemical Industries Limited are available to the general public for trading. The shares are listed on the country's two major stock exchanges - the National Stock Exchange of India Limited and the Bombay Stock Exchange. The respective symbols for the same are as follows:

1. BSE Code: 506655
2. NSE Code: SUDARSCHEMEQ
3. ISIN: INE659A01023
4. Sector: Dyes & Pigments

Coming to the stock market indices, the company comprises the following:

1. Nifty 500
2. Nifty SmallCap 250
3. S&P BSE 500
4. S&P BSE Basic Materials
5. S&P BSE AllCap
6. Nifty MidSmallCap 400
7. S&P BSE SmallCap

Registered Office

Sudarshan Chemical Industries Limited

Global Head Office:

162, Wellesley Road,

Pune - 411-001

Maharashtra, India

Email: contact@sudarshan.com

Contact number: +91-20-262-26-200

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DISCLAIMER:

The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.