Sudarshan Chemical Industries Limited (SUDARSCHEM) AI Stock Analysis

• Market Cap: ₹63.68B
• Dividend Yield: 0.46%
• Average Volume (3M): 4.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: 159.81%
• EPS Growth: -63.02%
• Country: IN
• Employees: 1,248
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -12.05
• Shares Outstanding: 78,611,940
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 10.19
• Revenue Forecast (FY): ₹95.54B

• Rating: 49 Neutral
• Price Target: ₹806.00 ▼(-16.52% Downside)
• Action: Reiterated Date: 11/12/25
• Date: Action: Reiterated 11/12/25

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

Strong revenue growth

Sudarshan reported exceptionally strong revenue growth (202% in the reported metric), indicating durable demand and successful market penetration. High top-line expansion across periods supports scale benefits, improved customer reach, and opportunity to invest in higher-margin specialty products and capacity.

Diversified end-market exposure

Serving paints/coatings, plastics, printing inks and cosmetics provides structural demand diversification. Exposure across multiple downstream industries and geographies reduces dependence on any single cyclical market, supporting revenue stability through sector-specific downturns and smoothing demand swings.

Efficient operating cash generation

The operating cash flow relative to net income indicates the business converts earnings into cash reliably. Strong operational cash conversion supports funding for working capital and capex, enhancing financial flexibility and resilience to episodic margin pressure without over-reliance on external financing.

Negative Factors

Declining net profit margin

A recent decline in net profit margin erodes return on invested capital and indicates margin pressure from costs, pricing, or product mix shifts. Persistently weaker net margins can limit reinvestment capacity, reduce ability to build reserves, and weaken long-term shareholder returns if not reversed.

Volatile free cash flow

Variability and recent declines in free cash flow suggest cash generation after capex is uneven, which can constrain funding for growth initiatives, debt reduction, or dividends. Structural volatility in FCF raises execution risk and reduces the buffer against industry downcycles.

Earnings volatility (negative EPS growth)

A sharply negative EPS growth rate indicates pronounced earnings volatility despite revenue gains. Persistent earnings contraction undermines ROI, may signal rising costs or one-off impacts, and complicates capital allocation and investor confidence unless profitability trends stabilize.

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

The company makes money primarily by selling colorants—especially pigments and pigment preparations—to industrial customers. Revenue is generated through (1) product sales to end-use segments such as paints/coatings, plastics, printing inks, and cosmetics/personal care, where customers purchase pigments for formulation into their finished products; and (2) sales across multiple geographies via direct customer relationships and distribution/export channels. Earnings are influenced by product mix (e.g., higher-value specialty pigments versus more standard offerings), volume demand from downstream industries, and the company’s ability to price products relative to raw-material and energy cost movements. Information on specific customer contracts, revenue split by segment/geography, or named strategic partnerships is null.

Sudarshan Chemical Industries Limited Financial Statement Overview

Summary

Sudarshan Chemical Industries Limited shows solid revenue growth and stable leverage. However, declining net profit margins and cash flow sustainability are concerns that need addressing to enhance financial stability.

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	Jun 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	69.10B	33.46B	25.39B	22.77B	21.91B	18.50B
Gross Profit	34.32B	15.72B	10.82B	9.09B	8.65B	7.45B
EBITDA	5.37B	3.14B	6.51B	2.14B	2.83B	2.97B
Net Income	553.15M	557.53M	3.57B	447.69M	1.30B	1.41B
Balance Sheet
Total Assets	97.55B	97.31B	23.55B	23.92B	23.69B	20.03B
Cash, Cash Equivalents and Short-Term Investments	13.14B	19.16B	539.32M	371.99M	351.66M	166.70M
Total Debt	25.28B	23.78B	4.67B	8.29B	8.23B	6.18B
Total Liabilities	58.35B	56.92B	12.06B	15.64B	15.36B	12.60B
Stockholders Equity	35.20B	34.40B	11.49B	8.28B	8.33B	7.44B
Cash Flow
Free Cash Flow	-2.39B	-575.29M	1.15B	946.46M	-1.32B	-1.04B
Operating Cash Flow	-1.42B	370.37M	1.93B	2.87B	1.78B	1.65B
Investing Cash Flow	2.21B	-15.48B	2.79B	-1.89B	-3.07B	-2.66B
Financing Cash Flow	-4.11B	25.96B	-4.46B	-1.03B	1.38B	1.08B

Sudarshan Chemical Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 965.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 965.55 is above the 20-day moving average (MA) of 841.99, above the 50-day MA of 887.70, and below the 200-day MA of 1142.53, indicating a bearish trend. The MACD of -29.32 indicates Positive momentum. The RSI at 42.27 is Neutral, neither overbought nor oversold. The STOCH value of 29.32 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	₹142.53B	76.50	―	0.06%	69.32%	113.55%
PRIVISCL	64 Neutral	₹114.68B	35.11	―	0.15%	24.25%	96.45%
RALLIS	63 Neutral	₹46.29B	700.00	―	0.92%	0.91%	18.12%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALKYLAMINE	61 Neutral	₹66.11B	48.28	―	0.62%	3.95%	8.28%
ACI	58 Neutral	₹74.12B	72.75	―	0.78%	-3.15%	-22.30%
SUDARSCHEM	49 Neutral	₹63.68B	-16.12	―	0.46%	159.81%	-63.02%

Sudarshan Chemical Industries Limited Corporate Events

Sudarshan Chemical Schedules Investor Call With Nippon India Mutual Fund

Sudarshan Chemical Industries Limited has notified the stock exchanges that it will hold a one-on-one video conference with Nippon India Mutual Fund on 30 December 2025 at 3:30 p.m. IST as part of its regular interactions with analysts and institutional investors. The company emphasized that the meeting schedule is subject to change due to logistical or other exigencies and explicitly stated that no unpublished price-sensitive information will be shared, underscoring its adherence to SEBI’s disclosure regulations and its commitment to transparent, compliant investor communication.