Sudarshan Chemical Industries Ltd., incorporated in the year 1951, is a Mid Cap company (having a market cap of Rs 5249.85 Crore) operating in Chemicals sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 578.88 Crore, up 13.74 % from last quarter Total Income of Rs 508.93 Crore and up 28.61 % from last year same quarter Total Income of Rs 450.11 Crore. Company reported net profit after tax of Rs 53.42 Crore in latest quarter.
Investment Rationale
Q1FY22 revenues are expected to to grow 36% YoY to Rs 479 crore mainly due to improvement in demand from end user industries. EBITDA margins are likely to improve 148 bps YoY to 16.5% mainly due to operational leverage. Subsequently, EBITDA is expected to grow 49% YoY to Rs 79 crore. Net Profit is expected to grow ~107% YoY to Rs 38 crore largely on account of lower taxes and a better operational performance, Key Monitorables: Improvement in end user demand and product mix.
Promoter/FII Holdings
Promoters held 42.7 per cent stake in the company as of June 30, 2020, while FIIs held 9 per cent, DIIs 2.5 per cent and public and others 45.8 per cent.
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