Why is Sumitomo Chemical India Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of 5.60% and Operating profit at 9.35% over the last 5 years
2
Flat results in Sep 25
- DEBTORS TURNOVER RATIO(HY) Lowest at 0.37 times
3
With ROE of 17, it has a Very Expensive valuation with a 7.2 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -16.84%, its profits have risen by 12.3% ; the PEG ratio of the company is 3.5
4
Below par performance in long term as well as near term
- Along with generating -16.84% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pesticides & Agrochemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Sumitomo Chemi. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sumitomo Chemi.
-16.84%
-0.52
32.51%
Sensex
4.83%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
5.60%
EBIT Growth (5y)
9.35%
EBIT to Interest (avg)
94.67
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.34
Sales to Capital Employed (avg)
1.33
Tax Ratio
25.41%
Dividend Payout Ratio
79.69%
Pledged Shares
0
Institutional Holding
12.12%
ROCE (avg)
32.87%
ROE (avg)
18.58%
Valuation Key Factors 
Factor
Value
P/E Ratio
43
Industry P/E
40
Price to Book Value
7.24
EV to EBIT
37.08
EV to EBITDA
33.28
EV to Capital Employed
10.39
EV to Sales
6.67
PEG Ratio
3.48
Dividend Yield
0.26%
ROCE (Latest)
28.03%
ROE (Latest)
16.97%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
Bearish
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
2What is working for the Company
PBT LESS OI(Q)
At Rs 199.05 cr has Grown at 29.1% (vs previous 4Q average
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.37 times
Loading Valuation Snapshot...
Here's what is working for Sumitomo Chemi.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 199.05 cr has Grown at 29.1% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 154.22 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for Sumitomo Chemi.
Debtors Turnover Ratio- Half Yearly
Lowest at 0.37 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 38.80 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income






