Dolat Capital Market has given Buy recommendation for Sudarshan Chemical Industries with a target price of Rs. 621 in its research report issued on Jan 29, 2021
Dolat Capital Market’s research report on Sudarshan Chemical Industries
Sales grew by 19.6% YoY to Rs 5.06bn (D.est: Rs 4.2bn). Gross margins remained flattish on a YoY basis at 42.8%. EBITDA grew by 26.5% YoY to Rs 796mn (D.est: Rs 641mn), with healthy EBITDA margin of 15.7% (up 90bps YoY). PAT growth too beat our estimates as the company reported a growth of 38.3% YoY.
We have upgraded our FY21/FY22/FY23 earnings by 32.9/8.2/12.8% owing to a strong 3QFY21 performance coupled with growth coming in from new geographies like Japan and rich product mix. We revise our target price to Rs 621/share and maintain buy rating on the stock.