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With Chemical Sector Gaining, Take a Bet on

Sudarshan Chemical
With all the changes and developments pushing
the Equity market to the higher highs and the
pulling it back to lower lows, 2016 has been
quite an eventful year for the Indian Investors.
While some stocks dipped more than expected,
there are few which have been identified by
Dynamic Levels as Multibaggers. These
Multibagger stocks are expected to grow with
time and give good returns.
Sudarshan Chemical is one such Multibagger
Stock as identified by Dynamic Levels.

What the Company Does!


Sudarshan Chemical started manufacturing pigments in the year 1952 with a handful of
inorganic pigments. It has since flourished with a breadth of products that cover
classical azo pigments, effect pigments, high performance pigments and pigment
dispersions. The company primarily serves the coatings, plastics, inks and cosmetics
markets.
The company is one of the leading pigment producers in India with a domestic market
share of 35 per cent. Sudarshan Chemicals is planning to invest around Rs 1,000 crores
in new capacities over the next five years at its Roha site. The investment is likely to
generate return on assets of four times with an RoCE of 30 per cent, which is likely to
boost the revenue growth at approximately 17 per cent (CAGR) over FY2016-20E.

Analysts believe net profit of the company will nearly double from Rs 70 crores in FY16
to Rs 136 crores in FY18. The brokerage has projected revenue of the company to
increase from Rs 1,409 crores to Rs 1,828 crores during the same period.
Also, the rating agency India Ratings & Research have recently upgraded Sudarshan
Chemical Industries Ltd's rating to "IND A+"; Outlook Stable w.e.f. 23rd December, 2016.

The Specialty Chemical Sector is a Big Support


Specialty chemical industry is one of the innovative, entrepreneurial as well as
consumer-driven industries. These specialty chemicals companies comprise lowvolume, high-value chemicals with specific applications. They constitute a significant
part of the Indian chemical industry.
Growing need for these chemicals in the end-user industries due to their physical as
well as chemical characteristics positively impacts the global market growth. The rising
population, decreasing arable land, increasing the need for improvement in crop yields,
and growing construction sector are some of the factors influencing the growth of
specialty chemicals such as pesticides, Specialty coatings and surfactants, and
construction chemicals.

Investment Opportunity in Sudarshan Chemical


Sudarshan Chemical share price closed at Rs 311.30. On the last trading day of this year,
the share closed with a correction of 1.95 per cent intraday. Dynamic Levels suggests
a buy of the share at CMP, with a target of Rs 374, which is its 6 week high.
With right stocks in your portfolio, you can aim for a good growth in 2017. Happy New
Year!

Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research
team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

Disclosure
Dynamic Equities Pvt. Ltd. is a member of NSE, BSE, MCX SX and a DP with NSDL & CDSL. It is also engaged in Investment Advisory
Services and Portfolio Management Services. Dynamic Commodities Pvt. Ltd., associate company, is a member of MCX & NCDEX. We declare
that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered. SEBI,
Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor
penalty on for certain operational deviations.
Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research Analyst/
his Relative:

Do not have any financial interest / any actual/beneficial ownership in the subject company.
Do not have any other material conflict of interest at the time of publication of the research report
Have not received any compensation from the subject company in the past twelve months
Have not managed or co-managed public offering of securities for the subject company.
Have not received any compensation for brokerage services or any products / services or any compensation or other benefits from the
subject company, nor engaged in market making activity for the subject company
Have not served as an officer, director or employee of the subject company

Article Written by
Nabarupa Kanjilal