Sudarshan Chemical Industries Reports Positive Q2 Results, Stock Receives 'Hold' Rating

Sudarshan Chemical Industries, a midcap company in the dyes and pigments industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financials, Sudarshan Chem. has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 13 to 12 in the last three months.

One of the key factors contributing to this positive performance is the growth in Profit Before Tax (PBT) less Other Income, which has increased by 138.68% year on year to Rs 49.00 crore. The near-term trend for PBT is also very positive.

Similarly, the Profit After Tax (PAT) has also shown significant growth of 111.1% year on year to Rs 37.69 crore. The near-term trend for PAT is also positive.

However, there are some areas that need improvement for Sudarshan Chem. For instance, the interest cost has increased by 26.32% quarter on quarter to Rs 8.88 crore. This indicates that the company has taken on more borrowings.

Moreover, the Dividend Payout Ratio (DPR) has been consistently decreasing over the last five years and is currently at its lowest at 8.91%. This means that the company is distributing a lower proportion of its profits as dividends.

Overall, Sudarshan Chemical Industries has shown positive financial performance in the second quarter of FY24-25. However, there are some areas that need attention for the company to continue its growth trajectory. Investors are advised to hold their positions in the stock for now.