Sumitomo Chemical India Ltd
Ticker: SUMICHEM
Decent
68/100
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Investing Reference
Price
502.20
Market Cap
25067.10
Debt/Equity
0.0179
ROE %
18.898
PB
8.6287
Promoter %
75.000
Pledge %
0.000
1Y Rev Growth %
11.192
5Y Rev Growth %
6.061
NP Margin %
15.465
NP Margin 5Y Avg %
13.768
Trading Reference
1M Return %
-4.693
6M Return %
-4.243
1Y Return %
-12.402
% Away 52W High
32.417
% Away 52W Low
12.550
Daily Volume
412632
Investment Verdict
Hold
Score 61/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 22/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
Summary
Sumitomo Chemical India Ltd shows strong growth potential driven by robust demand in agrochemicals and specialty chemicals.
✅ Positives
- Strong revenue growth in recent quarters
- Diverse product portfolio enhances market resilience
- Strategic partnerships boost innovation and reach
⚠️ Negatives
- High raw material costs impacting margins
- Regulatory challenges in the chemical sector
- Intense competition affecting pricing power
Verdict
Moderate growth potential with some risks.
Recommendation: Consider buying on dips for long-term gains.
Upside Probability: 25% | Downside Probability: 15%
Last generated: 31/10/2025
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Business Overview
Sumitomo Chemical India Ltd is a leading player in the Indian agrochemical and specialty chemical sectors, dedicated to enhancing agricultural productivity and sustainability. Catering to farmers, agricultural businesses, and industrial sectors, the company focuses on innovative solutions that drive growth and efficiency. With a commitment to quality and environmental stewardship, Sumitomo Chemical India plays a crucial role in supporting India's agricultural landscape and economic development.
- Established presence in agrochemicals and specialty chemicals
- Innovative solutions for farmers and industries
- Focus on sustainability and environmental care
- Strong commitment to quality and safety
- Supports agricultural productivity and economic growth
Investment Thesis
Sumitomo Chemical India Ltd stands out due to its strong promoter backing and credibility in the industry. With a significant growth trajectory in digital services, the company is well-positioned to capitalize on market opportunities. Additionally, its attractive valuation compared to peers makes it an appealing investment choice for retail investors.
- Strong backing from the Sumitomo Group enhances credibility and operational stability.
- Digital services segment poised for substantial growth, tapping into emerging market trends.
- Valuation metrics indicate a favorable position compared to industry peers.
- Robust financial performance supports sustainable growth and shareholder returns.
- Strategic initiatives align with India's increasing demand for chemical products.
Opportunity vs Risk
Opportunities
- Growing demand for agrochemicals
- Expansion in renewable energy sector
- Strong export potential
- Government support for chemical industry
Risks ⚠️
- Regulatory changes affecting operations
- Volatility in raw material prices
- Intense competition in market
- Environmental compliance costs
Peer Perspective
Sumitomo Chemical India Ltd trades at a discount to peers like UPL and Rallis India, with a need for margin stability and consistent growth to justify a potential rerating in the competitive agrochemical sector.
Future Outlook
Sumitomo Chemical India Ltd is well-positioned for growth, driven by strong demand in key sectors. Continued focus on execution and cost control will be crucial to capitalize on emerging opportunities in the market.
AI FAQs for Retail Users
- Q: What does Sumitomo Chemical India Ltd do?A: Sumitomo Chemical India Ltd manufactures and sells a range of chemicals and agro-products.
- Q: Is Sumitomo Chemical India Ltd a good investment?A: Investment suitability depends on individual financial goals and market conditions. Research is recommended.
- Q: What are the main products of Sumitomo Chemical India Ltd?A: The company produces pesticides, fertilizers, and specialty chemicals for various industries.
- Q: How can I invest in Sumitomo Chemical India Ltd?A: You can invest through a stockbroker or an online trading platform.
- Q: What factors affect the stock price of Sumitomo Chemical India Ltd?A: Stock prices can be influenced by market trends, company performance, and economic conditions.
📊 Stock Investment Checklist (100 Points)
Sumitomo Chemical India Ltd • Updated: 2025-09-17 17:07:30
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10BusinessHighThe chemical sector is essential for various industries, but faces regulatory challenges.
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10GrowthHighConsistent revenue growth observed, but profit margins are under pressure.
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10ProfitabilityHighROE and ROCE are decent, but OCF is fluctuating.
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8ValuationHighValuation metrics are slightly above industry averages.
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7BalanceHighModerate debt levels with reasonable liquidity.
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6GovernanceGoodPromoter holding is stable, but some concerns regarding disclosures.
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5DriversGoodGrowth drivers exist, but execution risks are notable.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity.
Final Score & Verdict
Score 68 / 100
• Decent
Sumitomo Chemical India Ltd shows potential for growth, but faces challenges in profitability and execution risks.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 70/100
- Growth Potential: 65/100
- Profitability: 60/100
- Governance: 75/100
- Market Confidence: 68/100