I have 500 shares of Sumitomo chemicals @ 501...it's now 402... please advise

Ans: You have bought this company at expensive valuation and growth is subdued in last 6 months.

SUMICHEM reported modest revenue growth of 7% YoY at Rs7.5bn (PLe Rs8.6bn), primarily on the back of domestic and exports business growth of 4% YoY and 13% YoY. Domestic business was under pressure due to a) adverse weather conditions; b) higher channel inventory; c) lower demand and d) steep decline in revenues
of fungicide segment (Tebuconazole- contributing ~10% to revenues) that impacted volume growth. However, lower demand was partially offset by better realizations (Glyphosate- Volumes under pressure; still, prices remained strong). Exports, however, continued to post double digit revenue growth (up 13% YoY) primarily driven by superior growth from Europe, Asia and Africa up 113%/60%/30% YoY in 3QFY23. Further higher channel inventory in LATAM markets have resulted in 5% YoY revenue decline during 3Q’23.

SUMICHEM launched 9 new products in the domestic market in 9MFY23 (4 insecticides, 1 fungicide, 1 metal
phosphide, and 3 PGRs). The Company launched 3 new unique proprietary 9(3) products such as Sumi Blue Diamond, Pyclome and Danitol NXT in the domestic market. Additionally, the company has recently received registrations for 2 more unique proprietary 9(3) products and is in process of commercially launching them in the market. This in-turn would support revenues and margins, in the near term.

As you have bought this company at expensive valuation and if you ready hold this company for long term than it makes sense to hold this company. Until this company will see growth in sales and profit due to new product launches, the price will remian in this range only.

Disclaimer: This information is only for educational purpose and not a buy or sell recommendation.