This Vijay Kedia stock, which is engaged in manufacturing and supplying high-performance pigments and specialty chemicals for various industrial applications worldwide, jumped 3% after announcing a final anti-dumping duty on azo pigments imported from China.
Stock Price Movement:
With a market capitalization of Rs. 7,453.42 crores, the share of Sudarshan Chemical Industries Limited has reached an intraday high of Rs. 982 per equity share, rising nearly around 2.72 percent from its previous day’s close price of Rs. 956.
What Happened:
India’s Ministry of Commerce and Industry has announced a final anti-dumping duty on azo pigments imported from China. This five-year duty aims to protect domestic producers from unfair pricing.
The involved Chinese producers face varying duties such as Ruian Baoyuan Chemical Industry Co. at $1,387/ton, Zhejiang Shengda Charter Win Chemical Co. at $513/ton, and other Chinese producers at $1,811/ton. This step is expected to support Indian pigment manufacturers by improving their competitive position in the market.
The recent anti-dumping duty is expected to benefit Sudarshan Chemical Industries Limited significantly. As the third-largest pigment producer globally, Sudarshan Chemical stands to gain from reduced competition in the Indian market. With an estimated 33 percent market share in India, the company is well-positioned to capture increased demand for domestically produced pigments.
In the December 2024 quarter, Sudarshan Chemical’s pigment business generated Rs. 601.22 crore out of its total revenue of Rs. 666.43 crore, contributing approximately 90 percent of its total revenue. This highlights the company’s strong focus on pigments and its potential to gain from the new anti-dumping measures.
Products Portfolio:
Sudarshan Chemical Industries offers a diverse product portfolio that includes organic pigments, inorganic pigments, and effect Pigments. Their organic pigments, such as Azo and Phthalos, are commonly used in coatings, plastics, and textiles. Inorganic pigments, like chromes and iron oxides, are ideal for industrial coatings. Effect pigments, with a mica base, add shimmer and are used in plastics, cosmetics, and automotive coatings.
Pigment Business Highlights:
Sudarshan Chemical Industries reported strong growth in its pigment business for Q3 FY25. The company earned Rs. 601 crore from pigments, marking a 15 percent increase compared to Rs. 521 crore last year. Export sales performed well, rising 29 percent YoY to Rs. 315 crore, while domestic sales grew 3 percent to Rs. 286 crore due to weak coating demand.
Specialty pigment sales reached Rs. 416 crore, up 16 percent, and non-specialty sales rose 14 percent to Rs. 186 crore. The company’s gross margin remained stable at 45.2 percent, slightly down from 45.5 percent last year.
Shareholding Pattern:
Ace investor Vijay Kishanlal Kedia holds a 1.27 percent stake in Sudarshan Chemical Industries Limited, valued at Rs. 94.7 crores, consisting of 10 lakh shares.
Recent quarter results:
Sudarshan Chemical Industries Limited’s revenue has increased from Rs. 565.75 crore in Q3 FY24 to Rs. 666.43 crore in Q3 FY25, which has grown by 17.80 percent. The net profit has decreased by 96.50 percent from Rs. 14.59 crore in Q3 FY24 to Rs. 0.51 crore in Q3 FY25.
Written By – Nikhil Naik
