Sudarshan Chemical Industries Limited (SUDARSCHEM) AI Stock Analysis

• Market Cap: ₹91.25B
• Dividend Yield: 0.44%
• Average Volume (3M): 4.98K
• Price to Earnings (P/E): 117.5
• Beta (1Y): 0.97
• Revenue Growth: 159.81%
• EPS Growth: -63.02%
• Country: IN
• Employees: 1,248
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.50
• Shares Outstanding: 78,606,476
• 10 Day Avg. Volume: 2,724
• 30 Day Avg. Volume: 4,977
• PEG Ratio: -1.68
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 2.37
• P/FCF Ratio: -137.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: ₹1,304.00 ▲(27.51% Upside)

The overall stock score reflects significant bearish technical indicators and overvaluation concerns, despite solid revenue growth. The lack of earnings call data and corporate events further limits positive influences on the score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Market Position

As a leader in the pigment industry, Sudarshan Chemical benefits from brand recognition and competitive positioning, enhancing its ability to capture market share.

Product Diversification

A diversified product portfolio across multiple industries mitigates risk and ensures steady demand, supporting revenue stability and growth.

Negative Factors

Profitability Challenges

Profitability challenges, such as declining margins, can impact financial health and limit reinvestment capabilities, affecting long-term growth.

Cash Flow Variability

Inconsistent cash flow can hinder the company's ability to fund operations and growth initiatives, posing a risk to financial stability.

Return on Equity Fluctuations

Fluctuating return on equity indicates potential challenges in maintaining profitability, which can affect investor confidence and capital allocation.

Sudarshan Chemical Industries Limited Business Overview & Revenue Model

Company Description

Sudarshan Chemical Industries Limited, together with its subsidiaries, manufactures and sells organic, inorganic, effect pigments, and dispersions in India, the United States, Europe, China, Mexico, Japan, and internationally. It operates in two segments, Pigments and Others. The company offers its pigment products under the Sudaperm, Sudafast, Sudacolor, Sudadur, Sudafine, Sudajet, Sudasol, Sudatherm, Sudanyl, Sumica, Sumica NXR, Sumicos, and Prestige brands that are used in coatings, paints, plastics, inks, cosmetics, textile, and other applications. It also manufactures pollution control equipment, size reduction equipment, pneumatic conveying systems, and grinding equipment for industrial applications; and clean air, grinding, and conveying solutions. The company was incorporated in 1951 and is headquartered in Pune, India.

How the Company Makes Money

Sudarshan Chemical Industries generates revenue primarily through the sale of its pigment products, which are essential components in various applications such as paints, coatings, plastics, and inks. The company has a diversified revenue model that includes both domestic and international sales, with significant exports contributing to its earnings. Key revenue streams include the production and distribution of organic and inorganic pigments, specialty chemicals, and color additives. SUDARSCHEM also benefits from strategic partnerships with various industries, which enhance its market reach and product offerings. Additionally, the company invests in research and development to innovate and expand its product portfolio, thus driving growth and profitability.

Sudarshan Chemical Industries Limited Financial Statement Overview

Summary

Sudarshan Chemical Industries Limited shows solid revenue growth and stable leverage. However, challenges in profitability and cash flow management, such as declining net profit margins and inconsistent free cash flow, indicate areas needing improvement.

Income Statement

Sudarshan Chemical Industries Limited has shown a consistent growth in total revenue over the years, with significant increases in gross profit and net income. The gross profit margin and EBIT margin have remained stable, although there's a noticeable decline in net profit margin for the most recent period. The revenue growth rate is strong, indicating a positive trajectory despite recent profitability challenges.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio, suggesting balanced leverage. The equity ratio indicates a reasonable proportion of assets funded by equity. However, the return on equity has shown fluctuations, affected by varying net income levels, indicating potential risks in maintaining profitability.

Cash Flow

Cash flow analysis reveals variability in free cash flow, with recent declines indicating potential cash management issues. The operating cash flow to net income ratio highlights efficient cash generation from operations, yet the free cash flow to net income ratio suggests challenges in sustaining cash flows after capital expenditures.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	52.19B	33.46B	25.39B	22.77B	21.91B	18.50B
Gross Profit	24.69B	15.72B	10.82B	9.09B	8.65B	7.45B
EBITDA	4.55B	3.14B	6.51B	2.14B	2.83B	2.97B
Net Income	735.19M	557.53M	3.57B	447.69M	1.30B	1.41B
Balance Sheet
Total Assets	0.00	97.31B	23.55B	23.92B	23.69B	20.03B
Cash, Cash Equivalents and Short-Term Investments	14.78B	19.16B	539.32M	371.99M	351.66M	166.70M
Total Debt	0.00	23.78B	4.67B	8.29B	8.23B	6.18B
Total Liabilities	-40.38B	56.92B	12.06B	15.64B	15.36B	12.60B
Stockholders Equity	40.38B	34.40B	11.49B	8.28B	8.33B	7.44B
Cash Flow
Free Cash Flow	0.00	-575.29M	1.15B	946.46M	-1.32B	-1.04B
Operating Cash Flow	0.00	370.37M	1.93B	2.87B	1.78B	1.65B
Investing Cash Flow	0.00	-15.48B	2.79B	-1.89B	-3.07B	-2.66B
Financing Cash Flow	0.00	25.96B	-4.46B	-1.03B	1.38B	1.08B

Sudarshan Chemical Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1022.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUDARSCHEM, the sentiment is Negative. The current price of 1022.7 is below the 20-day moving average (MA) of 1049.63, below the 50-day MA of 1205.06, and below the 200-day MA of 1173.83, indicating a bearish trend. The MACD of -52.46 indicates Negative momentum. The RSI at 34.09 is Neutral, neither overbought nor oversold. The STOCH value of 29.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SUDARSCHEM.

Sudarshan Chemical Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANURAS	66 Neutral	₹122.24B	78.69	―	0.06%	69.32%	113.55%
PRIVISCL	64 Neutral	₹116.50B	43.66	―	0.16%	24.25%	96.45%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALKYLAMINE	61 Neutral	₹93.53B	51.34	―	0.60%	3.95%	8.28%
RALLIS	56 Neutral	₹50.89B	28.92	―	0.95%	0.91%	18.12%
ACI	55 Neutral	₹63.19B	37.00	―	0.78%	-3.15%	-22.30%
SUDARSCHEM	49 Neutral	₹91.25B	117.51	―	0.44%	159.81%	-63.02%

Sudarshan Chemical Industries Limited Corporate Events

Sudarshan Chemical’s Credit Ratings Affirmed by India Ratings

Sudarshan Chemical Industries Limited announced that India Ratings and Research Private Limited, a Fitch Group Company, has affirmed the company’s credit ratings for its long-term and short-term financial instruments. The affirmation includes the withdrawal of ratings on the company’s non-convertible debentures, which were fully redeemed earlier in the year. This credit rating affirmation reflects the company’s stable financial position and may positively impact its market perception and stakeholder confidence.

Sudarshan Chemical Releases Q1 FY26 Earnings Call Transcript

Sudarshan Chemical Industries Limited has released a transcript of its recent conference call with analysts and institutional investors, which was held after the announcement of its unaudited financial results for the quarter ending June 30, 2025. This release indicates the company’s commitment to transparency and engagement with stakeholders, potentially impacting its market perception and investor relations positively.

Sudarshan Chemical Industries Announces Strategic Acquisition in Colorants Sector

Sudarshan Chemical Industries Limited has announced a significant move to acquire 26% of the equity share capital of Heubach Colorants India Limited through an open offer. This acquisition, conducted in collaboration with Sudarshan Europe B.V. and other associated entities, aims to strengthen Sudarshan’s market position in the colorants industry. The open offer is priced at INR 602.03 per equity share and is part of a strategic effort to expand the company’s influence and operational capacity in the sector.