Sudarshan Chem shines on Int'l approvals prospects

Sudarshan Chemicals has been making news lately on its stellar performance on bourses with stock gaining more than 100 per cent in less than three months. The stock is trading at its life time highs on Wednesday even as broader market is trading firm with Sensex up by almost 123 points at 26520 levels.

The stock is up by almost 4 per cent at Rs. 183 per share on an intraday basis after touching an intra-day high of Rs. 188 per share. 

The FY16 revenue growth for the stock has been at 15.7 per cent with EBITDA  rising by 29.5 per cent. The management is betting on international approvals for its operations in Europe, Asia and North America for higher growth trajectory compared to FY16.

The management's bullish commentary on the probable expansion of ROCE beyond 30 per cent has triggered some interest in the stock.  The company has also signed an MoU with Maharashtra government for investment worth Rs. 1,000 crore in next five years. Sudarshan Chemicals tops the Indian pigment manufacturing market with a share of 30 per cent and aims to be the fourth-largest player in the pigment business, globally. 

Over a 1 year period the stock has delivered 101 per cent returns and over 3 months period the stock is up by almost 106 per cent. The stock with a market cap of Rs. 1,266 crores is trading at a P/E multiple of 17.68. At current price the dividend yield for the stock is at 0.98 per cent.