Ambit Capital maintains buy on Sudarshan Chemicals, target price Rs 420

Ambit Capital has maintained buy rating on Sudarshan Chemicals in the long term with a target price of Rs 420. The stock ended down 0.7% at Rs 404.45 on Tuesday while the BSE Sensex closed 53.73 points down at 40,248.23.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 393.50 crore, up .83 % from last quarter sales of Rs 390.26 crore and up 10.54% from last year same quarter sales of Rs 355.98 crore. The company has reported net profit after tax of Rs 46.21 crore in the latest quarter.


Investment Rationale

The brokerage is positive on the stock due to a long growth runway, multiple opportunities for marketshare gains and strong evolution of capabilities (R&D, compliances, sales network). Lack of credible Indian players will expedite market-share gains for Sudarshan given capacity shifts from China/ Europe, the brokerage said.