AnnouncementSep 2026
Sep 2026 · Announcement under Regulation 30 (LODR)-Resignation of Company Secretary / Compliance Officer 1 Sep - Mr. Mandar Velankar resigned as General Counsel and Company Secretary effective 1 September 2026.
Source: Bse
Sudarshan Chemical Industries Limited (SUDARSCHEM)
Micro CapChemicals stocks · Micro cap · NSE
Sudarshan Chemical Industries Limited is an Indian specialty chemical company. The document highlights its strategic focus on the core pigments business, following the divestment of its non-core Diketene and CKP manufacturing subsidiary, VP4 Frankfurt GmbH.
Data qualityFresh enough for analysisQuote updated 21 Oct, 03:31 pm ISTDetails
Quote21 Oct, 03:31 pm IST
Base fundamentals14 Oct 2026 · screener
Latest result12 Aug, 08:34 pm IST
Score21 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags15 Aug 2026
Coverage14/14 · 100%
Valuation2026-07-20 · Rf 6.8% · Chemicals P/E 32.2 (n=45)
Technical timing lens
Trend score and candlestick chart
44NeutralSMA20 -4.4% / mo · RSI oversold · MACD − · sector -5.7pp vs Nifty 500 (3M)
Stock trend: 48
Sector RS: 39
Sector 3M: -11.3% vs Nifty 500 -5.6%
Chemicals FPI tailwindBuilding
Latest FPI flow is positive, but a second consecutive positive fortnight is still required. View sector evidence
Technical chart
SUDARSCHEMD candles · FIT view+21.8%Latest close ₹1077.00 on 2026-10-21
Bar
-4.0%
RSI
28
MACD hist
-13.61
52W pos
56%
2026-10-21O ₹1121.90H ₹1122.30L ₹1061.60C ₹1077.00Vol 2.2L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
SUDARSCHEMNifty ChemicalsNifty 500
- SUDARSCHEM
- +2.1%
- Nifty 500
- -6.5%
- Nifty Chemicals
- -12.2%
- Vs Nifty 500
- +8.6 pp
Chart stats
21 Oct 2026- From 52W high
- -20.0%
- 52W range position
- 56%
- ATR (14)
- 4.3%
- Volume vs 20D
- 1.02x
- Avg traded value
- ₹25.8 Cr
- 20D price channel
- ₹1,061.6 - ₹1,302.8
₹1,347
₹726.4 - ₹1,347
₹46
Latest completed session
20-session average
25.6% annualized volatility
Research snapshot
What the evidence says now
Weak fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend argues for patience, and recent execution is weak.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · OVERVALUED24
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Good70
Revenue +5.4% · PAT +87.3% YoY
Technical
Neutral44
Price trend and sector-relative-strength timing.
Valuation
Legacy model-8164.6%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence62
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Jun 2026
Good · 70/100Rev +5% YoY · PAT +87% YoY · margin expansion · operating leverage
Filed 12 Aug 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,642 Cr | +5.4% | -5.3% |
| EBITDA | ₹259 Cr | +34.9% | +14.1% |
| Operating margin | 10.0% | +200 bps | +200 bps |
| PAT | ₹103 Cr | +87.3% | +25.6% |
| PAT margin | 3.9% | +171 bps | +96 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 89.60
- P/B
- 2.60
- EV/EBITDA
- 11.61
- Market Cap
- 9103.00Cr
Profitability
- ROE
- 0.54%
- ROCE
- 5.46%
- ROA
- 0.93%
- Dividend Y
- 0.44%
Growth (CAGR)
- Revenue 5Y
- 39.00%
- EPS 5Y
- -33.00%
- Revenue 3Y
- 62.00%
- EPS 3Y
- -25.00%
Balance Sheet
- Debt/Equity
- 0.72
- Interest Coverage
- 4.07×
- Altman Z
- 2.79
- Book Value
- 439.00
Cash Flow
- FCF Yield
- 5.59%
- FCF Positive Y
- 9/5
- OCF
- 344.00 Cr
- EPS TTM
- 9.05
Shareholding
- Promoter Hold
- 8.19%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 67%
Financial History
Updated 21/10/2026
Revenue
₹ CrLatest: 2,642-5.3% vs prev
Net Profit
₹ CrLatest: 103+25.6% vs prev
ROE is shown only in the Annual view — quarterly equity data isn't published.
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 28. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~4.6% over last month) — short-term momentum negative.
- RSI(14) at 28 — oversold zone; bounce conditions.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 20% off 52W high · 48% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
69
RS percentile
Stage 2 UptrendEstablished S2
1M return
-14.4%
3M return
+2.1%
6M return
+19.5%
1Y return
-8.7%
RS 1D
-1
RS 20D
-6
Sector rank
#14
Industry rank
#41
Stage evidence
- Price is 6.9% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +4.8%.
- Both 3-month and 6-month returns are positive.
50-DMA
price below
200-DMA
price above
S2 entered
29 Jul 2026
S2 age
58 trading sessions
Sector
weakening
Industry
weakening
Relative-strength line vs Nifty 500 (base 100)
262 observations
21 Oct 2026Value 82.76-3.09%
RS vs Nifty 50083
Valuation & peers
U-Score 24 · legacy U-Score band OVERVALUED · valuation evidence and comparable companies
Valuation & peers
U-Score 24 · legacy U-Score band OVERVALUED · valuation evidence and comparable companies
OVERVALUED
Fundamental score breakdown
U band · OVERVALUEDValuation2/30
Growth7/25
Quality0/20
Balance Sheet5/15
Cash Flow7/10
Piotroski
6/9 (+3)
Penalties
0
Raw sum
24
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
24/100 · legacy band OVERVALUED
Positive drivers
- FCF yield is supportive at 5.6%.
- Cash flow contributes 7/10 to the score.
- Balance sheet contributes 5/15 to the score.
Main drags
- Fair-value margin of safety is negative at -8164.6%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 2/30; verify the latest quarterly trend.
Sector valuation model
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Primary lens
Mid-cycle PE/EV/EBITDA using multi-year average margins or earnings.
Secondary checks
Current margin versus 5-year average, balance sheet strength, commodity cycle.
Main risk check
A low trailing PE may mean peak-cycle earnings, not true cheapness.
PE
89.6
PB
2.6
EV/EBITDA
11.6
ROE
0.5%
ROCE
5.5%
FCF Yield
5.6%
Debt/Equity
0.7
MoS
-8164.6%
Cyclical/value-trap warning
This sector can look cheap when profits are temporarily high. Check mid-cycle margins/earnings before relying on trailing PE.
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 21 Oct 2026
v4.3-runtime-valuation
Final score
24
Previous: 24
Legacy U-Score band
OVERVALUED
Previous: OVERVALUED
Margin of safety
-8164.6%
Previous: -8506.9%
Score history
12 stored score snapshots. Latest stored move: +0 points.
21 Oct 2026
v4.3-runtime-valuation
24
24
23
23
24
24
24
24
24
24
24
24
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹298.98
-260.2% MoS
Growth-justified P/E
1.4
Growth-justified Value
₹13.03
-8164.6% MoS
PEG
—
Comparable companies
Peers
Business-comparable peers in Chemicals — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
NEOGEN
Micro
Neogen Chemicals Limited
Fertilizers & Agrochemicals
match 169
9
216.0
3.6%
-2868%
OVERVALUED
KANSAINER
Micro
Kansai Nerolac Paints Limited
Fertilizers & Agrochemicals
match 165
38
22.5
8.8%
-176%
WATCHLIST
PRIVISCL
Micro
Privi Speciality Chemicals Limited
Fertilizers & Agrochemicals
match 164
66
38.0
26.0%
+18%
UNDERVALUED
SHARDACROP
Micro
Sharda Cropchem Limited
Fertilizers & Agrochemicals
match 163
93
10.4
23.2%
+78%
DEEP VALUE
PCBL
Large
PCBL Chemical Limited
Fertilizers & Agrochemicals
match 163
28
45.0
5.6%
-906%
OVERVALUED
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis intactReviewed 2026-10-12T08:15:54.870Z
Management commentary snapshot
Sudarshan Chemical Industries divests 100% stake in step-down subsidiary VP4 Frankfurt GmbH for EUR 76.5 Mn, strengthening its balance sheet and focusing on core pigments business.
The divestment of a non-core asset for EUR 76.5 Mn is a positive strategic move, allowing Sudarshan to sharpen its focus on the core pigments business and significantly strengthen its balance sheet by prepaying acquisition loans, aiming for a zero net debt position.
Current business mix
VP4 Frankfurt GmbH Production Mix
Latest issuer-disclosed distribution across 3 reported categories.
Diketene & CKP92.5%
Food additives5.0%
Arylides (Azo yellow pigment)2.5%
Growth engines
Focus on Core Pigments Business
Divestment strengthens strategic focus and operational position, sharpening focus on core pigments business.
Tailwinds
Strengthened Balance Sheet
Proceeds from divestment (EUR 76.5 Mn) will be primarily utilized for prepayment of acquisition loan, aiming for zero net debt/positive cash.
Strategic Focus
VP4 Plant divestment allows sharpening focus on core pigments business, as only 5% of its production was used captively.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare QOQ
The document provides financial data for the divested entity (VP4) for Q1FY27 and FY26. While not a direct sequential comparison for the parent company, an implied annualized Q1FY27 performance can be compared to FY26 to assess the divested asset's recent momentum.
Sector KPIs management disclosed
VP4 Revenue
Q1FY27: EUR 4.1 Mn; FY26: EUR 15.7 Mn
VP4 EBITDA
Q1FY27: EUR 1.3 Mn; FY26: EUR 4.1 Mn
Management forward view
Strategic Divestment
VP4 plant was non-core for Sudarshan, with only 5% of its production used for captive consumption.
Balance Sheet Improvement
The proceeds will strengthen the balance sheet, aiming for a zero net debt/positive cash company.
Long-term Diketene Supply
Post closing, Nutrinova will supply required quantity of Diketene to Sudarshan via a long-term supply contract.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net Debt Position | Proceeds will be used for prepayment of acquisition loan. | Achievement of zero net debt/positive cash status post-divestment. |
| Core Pigments Business Performance | Strategic focus is being sharpened on core pigments. | Specific growth initiatives and financial performance in the core pigments segment. |
| Diketene Supply from Nutrinova | Long-term supply contract is in place. | Smooth and timely supply of Diketene from Nutrinova post-closing. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
62Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 35th percentile of the scored universe and 19th percentile within Chemicals. Main check: financial discipline is weak at 28/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 05 Sept 2026
management-trust-v1
154 docs text-extracted · 64 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
35th percentile
overall median 67 · Chemicals: 19th pctile, median 73 · Micro: 19th pctile, median 73
Evidence depth
Financial-only
154 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Acceptable, but check the weakest sub-score before increasing exposure.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
66
acceptable · holding, pledge, alignment
Cash flow
89
strong · profit to cash conversion
Balance sheet
65
acceptable · leverage and solvency
Discipline
28
weak · capital discipline
Results
53
watch · quarterly consistency
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is 5.2%.
- ▸9 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸Promoter holding is only 8.2%.
- ▸ROCE is low at 5.5%.
- ▸ROE is low at 0.5%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Sudarshan Chemical Industries Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Investor presentationSep 2026
Sep 2026 · PPT
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Updates on Acquisition 28 Sep - Sudarshan Chemical executes agreement to acquire 15.89% stake in Sudarshan Colorants India for ₹150.76 crore.
Source: Bse
Credit rating
Announcement under Regulation 30 (LODR)-Credit Rating 11 Sep - Crisil reaffirmed A1+ rating on Sudarshan Chemical’s Rs. 50 crore commercial paper.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 26 Jun
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 26 Jun
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 16 Jun
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Press Release / Media Release 16 Jun - Promoter Rajesh Rathi converted 9,80,000 warrants, investing nearly ₹100 crore; holding rises to 9.32%.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 15 Jun
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 4 Jun - Announcement under Reg 30 - Submission of Newspaper Publication regarding transfer of unclaimed Dividend and Underlying Shares to IEPF Authority
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Change in Management 25 May - FY26 audited results, ₹5 final dividend, and appointment of PwC Services LLP as internal auditor.
Source: Bse
Announcement
Corporate Action-Board approves Dividend 25 May - Board approved FY26 audited results, recommended ₹5 final dividend, and appointed internal and cost auditors.
Source: Bse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.