On May 31, Sudarshan Chemical Industries Ltd’s shares traded at Rs 786 on the National Stock Exchange, marking a 0.85 percent decrease, The company has a market capitalization of Rs 5,512 crore.
Company Specialising in the production and distribution of a diverse array of Organic and Inorganic Pigments, as well as Effect Pigments, Sudarshan Chemical Industries also manufactures Pollution Control Equipment, Size Reduction Equipment, and Grinding Equipment for various industrial purposes.
Sudarshan Chemical Industries is globally recognised as the third-largest pigment manufacturer, Sudarshan Chemical Industries holds a significant position in the Indian market, commanding a remarkable 35% market share as of FY24.
Moreover, it stands as the largest pigment producer within India, extending its reach to over 85 countries through exports.
Demonstrating consistent growth, the company’s sales have been steadily increasing at a Compound Annual Growth Rate (CAGR) of 10%, while its operating profit has been growing at a CAGR of 11%.
Sudarshan Chemical Industries boasts an extensive product portfolio encompassing organic pigments such as Azo, Phthalos, and HPPs, in addition to inorganic pigments like chromes, cadmiums, and Iron Oxides, as well as effect pigments like Mica bases, catering to both industrial and cosmetic sectors. These products find widespread application across coatings, plastics, inks, and cosmetics.
Notably, in FY24, the company’s Product Segment Split reveals a revenue composition of 59% from Specialty Products and 41% from Non-Specialty Products.
Based on the geographical split for FY24, the company generates 58% of its revenue from the domestic market and 42% from the international market. The company exports products to over 85 countries, supported by a sales team of more than 50 members with a presence in Europe, North America, Mexico, China, and Japan, along with sales teams in various other regions.
The company operates two manufacturing plants located in Mahad and Roha, spanning 80 and 33 acres, respectively, and maintains a dedicated R&D center on the outskirts of Pune.
According to the company’s report, the global organic pigment market is expected to grow at a CAGR of approximately 3% over the next five years. The company states that the global color pigments market is valued at around $10 billion, with market opportunities for Sudarshan estimated at $8.6 billion.
The company’s revenue increased by 10.5% year-on-year, rising from Rs 691 crore in Q4FY23 to Rs 764 crore in Q4FY24. Net profit saw a significant increase of 76%, growing from Rs 33 crore to Rs 58 crore. In FY24, the company reported a gross margin of 44.3% and achieved its highest ever EBITDA of Rs 300 crore.
In FY24, the company reported an EPS of 16, up from 6.5 in FY23, and the ROCE stands at 11.7%. Shares of Sudarshan Chemical Industries Ltd have gained 73% in the last six months and 75% over the last 12 months.
According to the latest shareholding pattern, the company’s promoter holds a 33.22% stake, while foreign institutional investors (FIIs) hold 4.50% and domestic institutional investors (DIIs) hold 17.47%.
Written by Omkar Chitnis
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