Sumitomo Chemical India Ltd. (SUMICHEM) AI Stock Analysis

• Market Cap: ₹196.06B
• Dividend Yield: 0.26%
• Average Volume (3M): 14.60K
• Price to Earnings (P/E): 77.7
• Beta (1Y): 1.16
• Revenue Growth: 8.69%
• EPS Growth: 12.26%
• Country: IN
• Employees: 1,649
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 1.52
• 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): 11.62
• Revenue Forecast (FY): ₹33.14B

• Rating: 61 Neutral
• Price Target: ₹415.00 ▼(-11.45% Downside)
• Action: Reiterated Date: 11/19/25
• Date: Action: Reiterated 11/19/25

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

Margin Sustainability

Consistently high gross and net margins indicate durable pricing power and efficient operations in core crop-protection products. Sustained margins support internal investment, buffer against input cost shocks, and enable steady cash retention that benefits long-term profitability and resilience.

Balance Sheet Strength

A conservative leverage profile and strong equity base provide financial flexibility to fund capex, absorb cyclical agricultural downturns, and pursue strategic opportunities without stressing liquidity. This stability reduces refinancing risk and supports long-term operational continuity.

Cash Generation

Reliable free cash flow generation and improving cash conversion enable repeat reinvestment in manufacturing, selective product expansion, and working-capital management. Strong cash generation underpins sustainable operations, reduces dependence on external financing, and supports strategic growth over time.

Negative Factors

Modest Revenue & EPS Growth

Low single-digit revenue and EPS growth point to limited organic expansion versus peers. Over the medium term this constrains scale benefits, limits margin expansion opportunities, and may require strategic product launches or market expansion to materially lift long-term growth and shareholder returns.

Operating Cash Flow Weakness

A declining trend in operating cash flow, even amid positive free cash flow, signals potential pressure on working capital or margin conversion. If persistent, this can reduce funds available for capex, dividends or debt reduction, forcing reliance on balance sheet adjustments or curbing strategic investments.

Seasonality & Product-Mix Risk

Dependence on crop seasons and product mix creates structural revenue and margin volatility across cycles. This exposure complicates forecasting, inventory and supply-chain planning, and can dilute margins in weak seasons, limiting consistent long-term earnings predictability and returns.

Sumitomo Chemical India Ltd. Business Overview & Revenue Model

Company Description

Sumitomo Chemical India Limited engages in the manufacture and sale of household and public health insecticides, agricultural pesticides, and animal nutrition products in India and internationally. It operates through two segments, Agro Chemicals and Others. The company offers crop protection products, such as insecticides, herbicides, fungicides, and miticides; animal nutrition and plant growth regulators; fumigants and rodenticides; weedicides; and biological products. It also exports its products. The company was incorporated in 2000 and is headquartered in Mumbai, India. Sumitomo Chemical India Limited is a subsidiary of Sumitomo Chemical Company Limited.

How the Company Makes Money

SUMICHEM makes money primarily by selling agrochemical products used in crop protection. Its core revenue stream comes from the sale of formulated crop protection products (e.g., insecticides, herbicides, fungicides) to customers in India and in overseas markets via distribution/marketing channels. Earnings are driven by product volumes and realizations across crop seasons, the mix between higher- and lower-margin products, and the company’s ability to commercialize and scale products through its manufacturing and supply chain. Information on any material non-product revenue streams (e.g., licensing/royalties, services), the precise split of revenues by segment/geography, and specific significant partnerships contributing to earnings is null.

Sumitomo Chemical India Ltd. Financial Statement Overview

Summary

Sumitomo Chemical India Ltd. exhibits strong financial health with consistent revenue growth and healthy profit margins. The balance sheet is solid with low leverage, and cash flows are strong, indicating effective cash management. However, there is room for improvement in cost management and shareholder returns.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: 468.65
• 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:SUMICHEM, the sentiment is Negative. The current price of 468.65 is above the 20-day moving average (MA) of 405.56, above the 50-day MA of 424.21, and below the 200-day MA of 501.89, indicating a bearish trend. The MACD of -8.74 indicates Positive momentum. The RSI at 40.11 is Neutral, neither overbought nor oversold. The STOCH value of 53.12 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	₹225.70B	31.76	―	0.12%	-2.24%	31.43%
GNFC	70 Outperform	₹62.50B	12.10	―	3.68%	-7.53%	42.74%
RALLIS	63 Neutral	₹48.37B	700.00	―	0.92%	0.91%	18.12%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SUMICHEM	61 Neutral	₹196.06B	77.71	―	0.26%	8.69%	12.26%
BAYERCROP	61 Neutral	₹203.29B	53.52	―	1.57%	8.92%	5.06%
BASF	59 Neutral	₹149.98B	40.15	―	0.51%	0.43%	-42.29%

Sumitomo Chemical India Ltd. Corporate Events

Sumitomo Chemical India Unveils Investor Presentation for December 2025 Results

Sumitomo Chemical India Ltd. has released an investor presentation detailing its financial results for the quarter and nine months ended 31 December 2025, describing the period as “a year of resurgence.” The disclosure, made in line with SEBI’s listing regulations, is aimed at updating shareholders and the broader market on the company’s performance trajectory, and the presentation has been submitted to both BSE and NSE for publication on their websites, signaling increased transparency and engagement with investors at a potentially pivotal point in its recovery.

Sumitomo Chemical India Releases Unaudited Q3 and Nine-Month FY2025 Results

Sumitomo Chemical India Ltd. has released its unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, following approval by its Board of Directors. The disclosure, made in compliance with SEBI listing regulations and supported by limited review reports from BSR & Co. LLP, provides investors and other market participants with updated financial performance data that will inform assessments of the company’s operating trajectory and valuation ahead of the close of the financial year.

Sumitomo Chemical India Files Clean Q3 FY2025 Integrated Financial Results

Sumitomo Chemical India Ltd. has submitted its integrated financial filing for the quarter and nine months ended 31 December 2025, in line with SEBI’s revised disclosure framework and recent circulars from BSE and NSE. The company has released its unaudited standalone and consolidated financial results and confirmed that there are no applicable deviations in the use of issue proceeds, no outstanding defaults on loans or debt securities, no reportable related-party transactions under the prescribed format, and no audit qualifications requiring disclosure, signalling regulatory compliance and a clean financial and governance profile for the period.

Sumitomo Chemical India Reports Insider Trading Code Violation, Fines Senior Executive

Sumitomo Chemical India Limited has reported to the BSE and NSE a violation of its Code of Conduct under SEBI’s Prohibition of Insider Trading Regulations by a designated person. The company disclosed that Kaushal Shah, General Manager of its Bhavnagar plant, pledged 250 shares of the company during the week ended 14 November 2025 without obtaining mandatory pre-clearance from the Compliance Officer, and consequently imposed a monetary penalty of ₹5,000 on him, signaling enforcement of internal governance and compliance standards for designated employees.