Buy Sumitomo Chemical India, target price Rs 610: Prabhudas Lilladher

Prabhudas Lilladher has buy call on Sumitomo Chemical India with a target price of Rs 610. The current market price of Sumitomo Chemical India Ltd. is Rs 482.7.

Sumitomo Chemical India, incorporated in the year 2000, is a Small Cap company (having a market cap of Rs 23796.77 Crore) operating in Pesticides/Agro Chemicals sector.

Sumitomo Chemical India 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 has 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 has reported net profit after tax of Rs 201.46 Crore in latest quarter.

The company’s top management includes Mr.Mukul G Asher, Mr.Chetan Shah, Mr.Sushil Marfatia, Mr.Hiroyoshi Mukai, Mr.B V Bhargava, Mr.Ninad D Gupte, Mr.Tadashi Katayama, Mr.Masanori Uzawa, Ms.Preeti Mehta. Company has SRBC & Co LLP as its auditors. As on 30-09-2022, the company has a total of 50 Crore shares outstanding.

Investment Rationale
The brokerage is of the view that export oriented players like Sumitomo Chemicals is better placed than pure play domestic players in the near term.

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of 30-Sep-2022, while FIIs owned 1.9 per cent, DIIs 6.38 per cent.