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Financial Planner - Answered on Feb 23, 2023

Vivek Shah is a SEBI registered investment advisor and certified financial planner from FPSB India. He has over 18 years of experience in financial planning.
Shah founded Finrise, a financial planning and wealth management firm, in 2011. He believes that equity investment is the only way to generate long term wealth.
He has an MBA in finance, a degree in chartered accountancy and is a registered life planner from Kinder Institute of Life Planning, USA.... more
Yogesh Question by Yogesh on Jan 09, 2023Hindi
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Money

Please shares views on Sudarshan Chemicals stock.

Ans: Hello Yogesh,

Please find my below comments on Sudarshan Chemical Limited:

1) SCIL is yet to capitalise Rs1.3bn of capex, which should be complete by end-FY23. It has capitalised Rs6.2bn by Dec’22. New capacity utilisation is low despite product approvals from clients due to underlying demand challenges.

2) SCIL expects new capacity to achieve peak utilisation in 3-4 years with incremental revenue potential of Rs15bn.

3) SCIL’s market share in India was stable due to decline in the ink segment; it has improved its market share in coatings. New players entering the coating market also add to the opportunity for SCIL to cement its position;

4) Pune land sale will help deleverage the balance sheet. FY24 will have only maintenance capex of Rs400mn. Debt repayment of Rs1.5bn is likely in FY24.

5) SCIL’s gross profit margin expanded by 210bps QoQ to 40.8% on softening raw material prices, but the benefit was restricted due to 1) high-cost inventory, and 2) the company’s cautious approach to price correction to avoid demand disruption. Gross profit declined 11.7% YoY (rose 5.2% QoQ) to Rs2.2bn, EBITDA dipped 43.6% YoY to Rs416mn, and EBITDA margin was just 7.9%. Forex loss was Rs100mn. SCIL anticipates EBITDA margin to improve with rise in revenues (operating leverage), reducing power and freight costs, and more cost optimisation measures to reduce fixed costs. Net profit fell 98.4% YoY to Rs6mn.

I hope this will help you to take informed decision in Sudarshan Chemicals Limited.

Happy Investing...

Disclaimer: This is just for educational purpose and should not be taken as buy or sell recommendation.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
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Go to Google and type: JoSAA Opening & Closing Ranks 2024
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You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
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For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
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Avoid selecting ‘ALL’ at once, as it may create confusion.
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Enter the branches you are interested in, one at a time, in your preferred order.
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Step 9: Adjust Your Expectations on a Safer Side
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Example Calculation:
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Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
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Hope this guide helps! All the best for your admissions!

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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