Sumitomo Chemical Stocks: Buy Sumitomo Chemical India; Target price Rs 530: ICICI Securities | Techno Glob


A call was bought with a target price of Rs 530. The current price of Sumitomo Chemical India is Rs.496.5.

Sumitomo Chemical India Ltd. was established in 2000, A Small Cap company with a market cap (Rs. 24730.18 crore) in the Pesticides/Agrochemicals sector.

Sumitomo Chemical India Ltd. Key product/revenue segments include agrochemicals; export incentives; other operating taxes; Includes commission and sale of services for the year ending 31-Mar-2022.

Finance

For the quarter ended 30-09-2022, the company reported a total revenue of Rs 1132.20 crore against a total revenue of Rs 990.18 crore and an increase of 14.34% from a total revenue of Rs 918.22 crore in the same quarter last year. The company reported a net profit after tax of Rs 201.46 crore in the last quarter.

Investment Rationale
The installment models the company to report 14.5% PAT CAGR over FY22-FY24E and RoE to move 20.9% to 224.4% in FY24E. It maintains an ADD rating on the stock and values ​​it at a revised DCF-based target price of Rs530, implying a target P/E of 48x FY24E.


Promoter/FII Holdings
Promoters hold 75.0 per cent stake in the company as on 30-Sept-2022, while FIIs hold 1.9 per cent; DIIs own 6.38 percent.

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