Sumitomo Chemical India Ltd. (SUMICHEM) AI Stock Analysis

• Market Cap: ₹232.50B
• Dividend Yield: 0.26%
• Average Volume (3M): 14.60K
• Price to Earnings (P/E): 42.8
• Beta (1Y): 1.07
• Revenue Growth: 8.69%
• EPS Growth: 12.26%
• Country: IN
• Employees: 1,649
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 3.60
• Shares Outstanding: 499,145,720
• 10 Day Avg. Volume: 20,149
• 30 Day Avg. Volume: 14,601
• PEG Ratio: 1.48
• Price to Book (P/B): 9.51
• Price to Sales (P/S): 8.76
• P/FCF Ratio: 56.64
• 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): 12.5
• Revenue Forecast (FY): ₹35.13B

• Rating: 61 Neutral
• Price Target: ₹482.00 ▲(3.48% Upside)

Sumitomo Chemical India Ltd. demonstrates strong financial performance, which is the primary driver of its stock score. However, technical analysis indicates bearish momentum, and valuation metrics suggest the stock may be overvalued. These factors contribute to a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability.

Cash Flow Management

Efficient cash flow management ensures the company can fund operations and growth initiatives, enhancing financial stability.

Balance Sheet Health

A strong balance sheet with low leverage provides financial flexibility and resilience against economic fluctuations.

Negative Factors

Cost Management

Inconsistent cost management can impact profit margins, necessitating better control to sustain profitability.

Return on Equity

Suboptimal ROE indicates that the company may not be fully utilizing its equity base to generate returns for shareholders.

Operating Cash Flow

A decline in operating cash flow could signal potential issues in cash generation, affecting future investment capacity.

Sumitomo Chemical India Ltd. Business Overview & Revenue Model

Company Description

Sumitomo Chemical India Ltd. (SUMICHEM) is a subsidiary of Sumitomo Chemical Co., Ltd., a global leader in the chemical industry. Established in India, SUMICHEM operates across various sectors, including agrochemicals, specialty chemicals, and materials. The company's core products encompass crop protection chemicals, fertilizers, and advanced materials used in industrial applications, contributing to agricultural productivity and enhancing the quality of life through innovative chemical solutions.

How the Company Makes Money

SUMICHEM generates revenue through several key streams, primarily by selling agrochemical products and specialty chemicals to a diverse customer base, including farmers, agricultural businesses, and industrial manufacturers. The company's revenue model is bolstered by strategic partnerships with local distributors and retailers, which enhance its market reach across India. Additionally, SUMICHEM benefits from research and development initiatives that lead to the introduction of new and innovative products, allowing it to capture a larger market share. The company also engages in export activities, providing its products to international markets, further diversifying its income sources.

Sumitomo Chemical India Ltd. Financial Statement Overview

Summary

Sumitomo Chemical India Ltd. exhibits strong financial health across all verticals. The income statement reflects robust revenue and profit growth, supported by efficient operations. The balance sheet showcases a solid capital structure with low leverage, enhancing financial stability. Cash flows are strong, indicating effective cash management and growth potential. Overall, the company is well-positioned for continued success in the agricultural inputs industry, though attention to cost management and further optimization of shareholder returns could enhance performance.

Income Statement

Sumitomo Chemical India Ltd. shows strong financial performance with consistent revenue growth, as evidenced by a significant increase in total revenue from the previous year. The company maintains healthy profit margins, with a gross profit margin of over 30% and a net profit margin exceeding 16%. The EBIT and EBITDA margins also reflect operational efficiency. These factors indicate a robust and profitable income statement, although slightly fluctuating gross profit suggests potential room for improvement in cost management.

Balance Sheet

The company's balance sheet is solid, with a low debt-to-equity ratio indicating conservative leverage. The equity ratio above 70% demonstrates financial stability and a strong capital structure. However, the return on equity, while positive, shows potential for improvement to maximize shareholder value. Overall, the company maintains a healthy balance sheet with manageable liabilities and a robust equity base.

Cash Flow

The cash flow statement displays a positive trajectory, with consistent free cash flow generation and an improving operating cash flow to net income ratio. The free cash flow to net income ratio indicates efficient cash conversion, though slightly decreasing operating cash flow warrants monitoring. The company manages capital expenditures well, supporting sustainable cash flow growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	33.66B	31.49B	28.44B	35.11B	30.61B	26.45B
Gross Profit	13.46B	12.70B	10.49B	12.24B	11.36B	9.74B
EBITDA	6.71B	6.10B	4.53B	6.47B	5.82B	4.74B
Net Income	5.57B	5.05B	3.70B	5.02B	4.24B	3.45B
Balance Sheet
Total Assets	0.00	39.64B	33.13B	33.69B	30.10B	26.70B
Cash, Cash Equivalents and Short-Term Investments	12.62B	12.59B	8.91B	5.63B	5.75B	5.32B
Total Debt	0.00	518.93M	302.49M	339.72M	375.84M	326.35M
Total Liabilities	-29.05B	10.59B	8.69B	9.87B	10.82B	11.29B
Stockholders Equity	29.05B	29.01B	24.42B	23.82B	19.27B	15.41B
Cash Flow
Free Cash Flow	0.00	4.87B	6.93B	2.70B	1.08B	3.82B
Operating Cash Flow	0.00	5.17B	7.57B	3.89B	2.22B	4.25B
Investing Cash Flow	0.00	-4.57B	-4.20B	-3.27B	-2.90B	-2.58B
Financing Cash Flow	0.00	-679.20M	-3.37B	-725.45M	-626.38M	-470.64M

Sumitomo Chemical India Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 465.80
• 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:SUMICHEM, the sentiment is Negative. The current price of 465.8 is below the 20-day moving average (MA) of 468.89, below the 50-day MA of 509.22, and below the 200-day MA of 529.80, indicating a bearish trend. The MACD of -16.07 indicates Negative momentum. The RSI at 40.50 is Neutral, neither overbought nor oversold. The STOCH value of 59.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SUMICHEM.

Sumitomo Chemical India Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSCL	74 Outperform	₹228.60B	34.83	―	0.14%	-2.24%	31.43%
GNFC	70 Outperform	₹72.90B	12.97	―	3.62%	-7.53%	42.74%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SUMICHEM	61 Neutral	₹232.50B	42.85	―	0.26%	8.69%	12.26%
BAYERCROP	61 Neutral	₹217.34B	36.68	―	2.74%	8.92%	5.06%
BASF	60 Neutral	₹192.55B	48.64	―	0.48%	0.43%	-42.29%
RALLIS	56 Neutral	₹50.89B	28.92	―	0.95%	0.91%	18.12%

Sumitomo Chemical India Ltd. Corporate Events

Sumitomo Chemical India Releases Q2 & H1 FY ’26 Earnings Call Transcript

Sumitomo Chemical India Limited has released the written transcript of its earnings call held on October 28, 2025, discussing the financial performance for the quarter and half-year ending September 30, 2025. This announcement provides stakeholders with detailed insights into the company’s financial health and strategic direction, reinforcing its commitment to transparency and effective communication with investors.

Sumitomo Chemical India Schedules Earnings Call for Q2 and H1 FY26

Sumitomo Chemical India Ltd. has announced an upcoming earnings call scheduled for October 28, 2025, to discuss its financial performance for the quarter and half-year ended September 30, 2025. This call will provide insights into the company’s financial health and operational strategies, potentially impacting investor perceptions and market positioning.