This Ace Investor Vijay Kedia stock, which deals in the manufacture and sells a wide range of Organic and Inorganic Pigments, Effect Pigments, surged upto 6 percent from the day’s low after the acquisition of the World’s 2nd largest pigment manufacturer.
Price Action
With a market capitalization of Rs. 6,650.80 Crores, the shares of Sudarshan Chemical Industries Limited were up by 5.7 percent in the day’s trade, touching a day’s high of Rs. 849.75 per share from its day low of Rs. 804. The stock then reiterated from its day high and was trading at Rs. 846.45 which is 1.82 percent higher than the previous closing price of Rs. 831.30.
The stock has delivered around 44 percent in the past year and thus outperforming the Nifty Index in the same period.
Ace Investor Stake
As of 29th January 2025, the Ace Investor Vijay Kedia holds around 1.27 percent in Sudarshan Chemicals. He reduced his stake from 1.44 percent as of December 2024.
What Happened
The company’s stock is in focus after Sudarshan Chemicals, as per exchange filing completed the acquisition of Heubach Group of Germany’s Global Pigment Business operations (Second largest in the world), which was completed on 3rd March 2025.
They had entered into the agreement with Heubach on 11th October 2024, where its Sudarshan’s subsidiary was to acquire Heubach’s Pigment Business operations, subjected to regulatory approvals as per the agreement.
This acquisition will benefit Sudarshan to expand its portfolio to high-quality products and access to a strong presence in the markets, including the Americas and Europe.
Furthermore, it provides customer access and a diversified footprint across sites globally. This acquisition cost around EURO 127.5 Million (~Rs. 1,160 crore) and it has also paid EURO 29.44 Million (~Rs. 268 crore) for Inventory adjustments and others.
Management Commentary
Commenting on the development, M.D of Sudarshan Chemicals, Mr. Rajesh Rathi said “Today marks an exciting new chapter as we unite with Heubach to become an inspirational leader in the colorants industry. The combined company builds on the rich legacies of both Sudarshan and Heubach. Our goal is now to create the world’s most valuable pigment company with great financial strength and profitability. Together, we will drive continuous innovation and deliver breakthrough solutions that benefit each of our stakeholders.”
Financial Performance
Sudarshan Chemical Industries consolidated revenue from operations has increased by 17.79 percent year on year from Rs. 565.75 crores in Q3FY24 to Rs. 666.42 crores in Q3FY25. Its net profit stood at Rs. 0.51 crores in Q3FY25, a decline of 96.50 percent from Rs. 14.59 crores in Q3FY24. The exceptional item value for the quarter stood at Rs. 30.82 crore.
Business Segments
As of December 2024, the company’s operational revenue includes 90.18 percent from Pigments and the remaining 9.81 percent from Others. Operating profits from Pigments contribute a major part, thus it grew by 22.73 percent on a year-over-year basis. However, the Others segment continued to make losses for this quarter.
About the Company
Sudarshan Chemical Industries Limited, founded in 1951 and headquartered in Pune, India, is a prominent global manufacturer of pigments and dyes. They specialize in organic and inorganic pigments, pigment dispersions, and effect pigments for industries such as plastics, coatings, printing, textiles, and cosmetics.
Written by Santhosh S
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