Sudarshan Chemical Industries Ltd.
ISIN: INE659A01023 • Market Cap: ₹9,045 Cr
The 5-Pillar Quality Audit for Sudarshan Chemical Industries Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (6.2%), Return on Capital Employed (5.0%), and equity compounding (0.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.62 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (57.5%) and 3Y PAT CAGR (-46.8%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 124.93 vs PEG of 1.49 and Dividend Yield of 0.4%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 8.2%, backed by 34.9% institutional ownership.
Key Fundamental Strengths
Strong Topline Expansion (3Y Sales CAGR: 57.5%)
Revenue has expanded at 57.5% CAGR over 3 years, signaling industry market-share gains.
Deep Institutional Sponsorship (34.9%)
Mutual funds, domestic DIIs, and foreign FIIs hold 34.9%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 5.0%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Priced for Perfection (P/E: 124.93)
A steep valuation multiple of 124.93 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking SUDARSCHEM against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 54/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Chemicals Sector Peer Comparison
Compare SUDARSCHEM directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Sudarshan Chemical Industries Ltd. (SUDARSCHEM)Current | 54/100 | ₹9,045 Cr | 124.93 | 5.0% | 0.62 | — |
| Solar Industries India Ltd. (SOLARINDS) | 80/100 | ₹1.79 Lakh Cr | 89.97 | 30.2% | 0.23 | View |
| Pidilite Industries Ltd. (PIDILITIND) | 75/100 | ₹1.68 Lakh Cr | 63.40 | 28.7% | 0.01 | View |
| SRF Ltd. (SRF) | 73/100 | ₹76,329 Cr | 35.31 | 15.2% | 0.36 | View |
| Coromandel International Ltd. (COROMANDEL) | 72/100 | ₹60,148 Cr | 32.83 | 21.6% | 0.07 | View |
| Linde India Ltd. (LINDEINDIA) | 61/100 | ₹57,146 Cr | 104.59 | 12.2% | 0.00 | View |
Frequently Asked Questions: Sudarshan Chemical Industries Ltd.
Q:What is the 5-Pillar Fundamental Score for Sudarshan Chemical Industries Ltd. (SUDARSCHEM)?
Sudarshan Chemical Industries Ltd. has a RupeeTools Fundamental Score of 54/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (37/100), Financial Health (66/100), Growth (58/100), Valuation (50/100), and Ownership Quality (60/100).
Q:Is SUDARSCHEM fundamentally strong for long-term investment?
SUDARSCHEM currently holds a moderate quality rating of 54/100. While it operates in the Chemicals sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does SUDARSCHEM pass the Coffee Can Investing filter?
No. SUDARSCHEM does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does SUDARSCHEM compare against other Chemicals peers?
Within India's Chemicals sector, SUDARSCHEM trades at a P/E of 124.93 and generates an ROCE of 5.0%. Compare its 5-Pillar score of 54/100 against top sector peers like Solar Industries India Ltd. (80/100), Pidilite Industries Ltd. (75/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.