Sudarshan Chemical Industries Limited (SUDARSCHEM) AI Stock Analysis

• Market Cap: ₹71.18B
• Dividend Yield: 0.46%
• Average Volume (3M): 4.98K
• Price to Earnings (P/E): 128.5
• Beta (1Y): 1.00
• 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: 78,611,940
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: ₹901.00 ▼(-6.69% Downside)

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

Very strong multi-period revenue growth indicates expanding product adoption and market penetration across end markets. Sustained top-line expansion underpins capacity to reinvest in R&D and capacity, supporting durable competitive position and long-term earnings scalability.

Diversified End Markets & Global Footprint

Exposure to coatings, plastics and cosmetics plus multiple manufacturing sites and global sales reduces demand cyclicality and supply concentration risk. This diversified demand base and scale help stabilize revenue, support export growth, and sustain competitive advantages over time.

Balanced Leverage

A moderate debt-to-equity profile and reasonable equity funding indicate prudent capital structure, preserving financial flexibility for capex and strategic initiatives. This balanced leverage lowers refinancing risk and supports investment without excessive strain on cash flow over the medium term.

Negative Factors

Declining Net Profit Margin

A recent decline in net profit margin signals margin pressure that can erode earnings durability. If sustained, weaker margins will constrain free cash generation, limit funds for R&D and capacity expansion, and reduce resilience to input-cost or competitive shocks over the medium term.

Variable Free Cash Flow

Volatile and recently declining free cash flow undermines the company’s ability to self-fund growth and maintain steady shareholder returns. Persistent FCF variability increases reliance on external financing, raising execution risk for long-term projects and limiting strategic flexibility.

Earnings per Share Contraction

A sharp EPS decline reflects material pressure on per-share profitability, reducing retained earnings and investor returns. Prolonged EPS weakness can impair capacity to finance growth internally, hamper hiring or capex plans, and challenge credibility with long-term stakeholders.

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, 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	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: 965.55
• 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 965.55 is above the 20-day moving average (MA) of 911.71, above the 50-day MA of 955.02, and below the 200-day MA of 1173.48, indicating a bearish trend. The MACD of -23.60 indicates Negative momentum. The RSI at 45.05 is Neutral, neither overbought nor oversold. The STOCH value of 55.72 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	₹141.76B	91.26	―	0.06%	69.32%	113.55%
PRIVISCL	64 Neutral	₹109.85B	41.17	―	0.15%	24.25%	96.45%
RALLIS	63 Neutral	₹53.43B	31.99	―	0.92%	0.91%	18.12%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALKYLAMINE	61 Neutral	₹80.23B	44.04	―	0.62%	3.95%	8.28%
ACI	58 Neutral	₹69.79B	40.85	―	0.78%	-3.15%	-22.30%
SUDARSCHEM	49 Neutral	₹71.18B	128.45	―	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.