Buy Sumitomo Chemical India, target price Rs 530: ICICI Securities

ICICI Securities has buy call on Sumitomo Chemical India with a target price of Rs 530. The current market price of Sumitomo Chemical India is Rs 496.5.

Sumitomo Chemical India Ltd., incorporated in the year 2000, is a Small Cap company (having a market cap of Rs 24730.18 Crore) operating in Pesticides/Agro Chemicals sector.

Sumitomo Chemical India Ltd. key Products/Revenue Segments include Agrochemicals, Export Incentives, Other Operating Revenue, Commission and Sale of services for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 1132.20 Crore, up 14.34 % from last quarter Total Income of Rs 990.18 Crore and up 23.30 % from last year same quarter Total Income of Rs 918.22 Crore. Company reported net profit after tax of Rs 201.46 Crore in latest quarter.

Investment Rationale
The brokerage models the company to report PAT CAGR of 14.5% over FY22-FY24E, and RoE to move to 20.9% in FY24E from 24.4% in FY22. It maintains ADD rating on the stock and value it at a revised DCF-based target price of Rs530, implying a target P/E of 48x FY24E.

Promoter/FII Holdings
Promoters held 75.0 per cent stake in the company as of 30-Sep-2022, while FIIs owned 1.9 per cent, DIIs 6.38 per cent.