Sumitomo Chemicals
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Sumitomo Chemical India Limited (SCIL) is navigating a complex landscape marked by both opportunities and challenges. Management's focus on a 'phygital' transformation and aggressive expansion of manufacturing capabilities positions the company well for future growth. The strategic decision to localize semiconductor chemical production in India could serve as a significant long-term growth driver, enhancing SCIL's competitive position. Vista's financial outlook reflects stable revenue growth and improving margins, supported by disciplined pricing strategies and a robust product pipeline. However, the company faces headwinds from rising raw material costs and geopolitical uncertainties that could impact profitability. The fertilizers and pesticides industry is expanding, with improving pricing power, yet SCIL must manage the risks associated with climate volatility and market dynamics. Over the next 12-24 months, key opportunities include the successful launch of new products and the establishment of Dahej as a global manufacturing hub, while watchpoints include the impact of currency fluctuations and competitive pressures in the semiconductor space
Why We Like This Stock
- Management's focus on expanding manufacturing capabilities and product innovation supports long-term growth
- The localization of semiconductor chemical production presents a significant growth opportunity
- Improving pricing power in the fertilizers and pesticides industry enhances revenue potential
Things To Watch Out For
- Rising raw material costs pose a risk to margins and profitability
- Geopolitical uncertainties could disrupt supply chains and market stability
- Climate volatility and erratic monsoon patterns may impact agricultural demand
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,844 | 3,149 | 3,238 | 3,376 | 3,510 |
| Profit Before Tax (Cr.) | 503 | 680 | 744 | 773 | 810 |
| PBT Margin | 17.7% | 21.6% | 23.0% | 22.9% | 23.1% |
| Net Profit (Cr.) | 380 | 511 | 557 | 582 | 610 |
| Earnings Per Share | 7.6 | 10.2 | 11.2 | 11.7 | 12.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 625 | 29-Jul-2026 |
| Anand Rathi | ▲ Buy | 650 | 20-Jul-2026 |
| Kotak Securities | ▼ Sell | 480 | 01-Jun-2026 |
Company Overview
Show Company Profile
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 also offers crop protection products, such as insecticides, herbicides, fungicides, and miticides; household pesticides; animal nutrition; plant nutrition and plant growth regulators; fumigants and rodenticides; and biological 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.