Sumitomo Chemical compounds India Ltd. – Sturdy Parentage
Sumitomo Chemical India Ltd. (SCIL) is a subsidiary of Sumitomo Chemical Firm Ltd. (SCCL), Japan, which is a diversified world chemical firm.
- SCIL has 5 manufacturing services – 4 in Gujarat and 1 in Maharashtra – in addition to 4 branches and 68 depots throughout India. The corporate has its unfold throughout ~80 nationwide areas and a pair of worldwide areas i.e., China and Vietnam.
- In FY17, SCIL acquired Excel Crop-care Restricted (ECC), an present listed firm with 3 manufacturing services (2 in Gujarat and 1 in Dadra & Nagar Haveli) and three fully-equipped R&D facilities.
- ECC was primarily a premium generic agrochemical manufacturing firm with a deal with formulations and had services to fabricate each formulations and technical.
Valuation
The corporate’s sturdy parentage, large distribution community, rising share of export income, and steady product launches will assist it to take an enormous leap additional. At CMP, the inventory trades at 35x FY24E EPS. We advocate a BUY score within the inventory with the goal worth (TP) of Rs.550, 42x FY24E EPS.
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