Shares of this small-cap chemical stock were in focus on Friday after HDFC Mutual Fund bought approximately 17.76 lakh equity shares of the company via a Bulk Deal on February 15th, 2024. In the past month, the company’s stock has gained nearly 12 percent.
With a market capitalization of Rs 3,914 crores, the stocks of Sudarshan Chemical Industries Limited started their trading session on Friday at Rs 580 and closed the session at Rs 566, a flat movement compared to the previous closing levels of Rs 567.55 apiece.
As per the Bulk Deals data available with the Bombay Stock Exchange (BSE), HDFC Mutual Fund bought a stake worth Rs 91 crores, i.e., nearly 17.76 lakh fully paid-up equity shares, equivalent to a 2.56 percent equity stake, at an average trade price of Rs 513.99 per equity share.
On the other side, two of the Promoter Group members, viz, Mr. Ajay Balkrishna Rathi and Ms. Nisha Ajay Rathi sold shares in the market. The former sold 14 lakh equity shares (2.02 percent stake) at an average price of Rs 514.18 and the latter sold her entire stake of nearly 4 lakh shares (0.58 percent stake) at an average price of Rs 514.
During the recent financial quarters, the company’s basic business parameters saw a dip in numbers with the operating revenues reducing from Rs 600 crores during the September 2023 quarter to Rs 565 crores during the December 2023 quarter, and the bottom-line numbers, during the same period, falling from Rs 17 crores to Rs 14 crores.
Due to the sector’s underperformance, the company’s ratio analysis also portrays a fall with the return on equity (RoE) shifting down drastically from 15.59 percent during FY22 to 5.40 percent during FY23 and the return on capital employed (RoCE) from 14.59 percent to 7.23 percent.
Founded in 1952, Sudarshan Chemical Industries Limited is engaged in the business of manufacturing colours and effect pigments. Deriving most of its revenue from domestic operations within India, the company generates maximum revenue from the ‘Pigments’ segment.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
