Our 24th company in the Series of Best Stocks to Buy in India for Long term 2023 is Sumitomo Chemical India Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Sumitomo Chemical India Pvt Ltd is a manufacturer of inorganic chemicals. The company is located in Mumbai, India.
Now Let’s check the important fundamental figures of this company. This is a mid cap company with Market Cap ₹23,514cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 55.52
Sector PE Ratio: 13.72
PE Ratio of this company is high than Sector’s PE. So it’s a Average PE than the peers of this company.
PB Ratio : 12.20
Sector PB Ratio : 2.66
PB Ratio of this company is high than Sector’s PB ratio. So it’s Average PB than the peers of this company.
Dividend Yield : 0.21%
Sector Dividend Yield : 2.28%
Dividend of this company is Low than Sector’s dividend. So it’s Below Average PB than the peers of this company.
ROE: 22.53%
ROCE: 29.81%
ROE (Return on equity) and ROCE (Return on capital equity) is Good.
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2022 | 3,091.39 | 423.55 |
| 2021 | 2,663.48 | 345.31 |
| 2020 | 2,435.46 | 204.69 |
| 2019 | 2,235.98 | 165.80 |
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2022 | 2021 | 2020 | 2019 |
| 1,082.43 | 1,130.63 | 884.41 | 811.56 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2022 , Company have 1,082.43 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2022 | 2021 | 2020 | 2019 |
| 108.26 | 382.15 | 183.40 | 38.03 |
Debt Level: SUMICHEM is debt free.
Reducing Debt: SUMICHEM had no debt 5 years ago.
Debt Coverage: SUMICHEM has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: SUMICHEM has no debt, therefore coverage of interest payments is not a concern.
Share Holding Pattern
| Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
| Jun 2022 | 75.00% | 2.06% | 2.60% | 3.80% | 16.54% |
| Mar 2022 | 75.00% | 1.90% | 2.45% | 4.24% | 16.40% |
| Dec 2021 | 75.00% | 1.70% | 2.26% | 4.09% | 16.95% |
| Sep 2021 | 75.00% | 1.37% | 1.92% | 4.25% | 17.47% |
Above table showing there is no big change in Promotors holding which is 75.00% in June 2021. FIIs invested in June 2022 with 2.06% and retail investor is 17.47%.
Investment Checklist for Sumitomo Chemical India Ltd.
- The company is currently profitable
- Earnings are forecast to grow by an average of 21.5% per year for the next 3 years
- They are debt free
- Dividend is too low to be a concern
- Share price has been stable over the past 3 months
- Profit margins improved or SUMICHEM became profitable
- They have sufficient analyst coverage
- No concerning events detected
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹35B)
- Market cap is meaningful (₹235B)
- SUMICHEM does not have negative shareholders equity.
According to its historical performance we can predict stock target.
[membership_protected_content user=non-member]
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
[/membership_protected_content]
[membership_protected_content]
Entry Buying Zone : 400 to 450
Target: 550 (30% Upside)
Time Horizon: 1 Year
Risk Profile: Low Risk (Stock is 1.88x as volatile as Nifty)
[/membership_protected_content]
Hope you liked Our 24th company in the Series of Best stocks to buy in India for Long term 2023. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss