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506655: Future Overseas Investment And Governance Changes Will Shape Balanced Outlook

Regulatory Tightening And Integration Challenges Will Undermine Fundamentals

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506655
AnalystLowTarget
Not Invested
Published 19 Jul 2025

Update shared on 12 Dec 2025

Fair value Increased 23%
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AnalystLowTarget's Fair Value
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1Y
-13.0%
7D
1.0%

Analysts have raised their price target for Sudarshan Chemical Industries from ₹835 to ₹1,027, reflecting higher valuation multiples despite moderating growth and slightly softer margin expectations.

What's in the News

  • A board meeting is scheduled on November 12, 2025 to approve unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, and to consider an equity investment of up to EUR 14 million in wholly owned subsidiary Sudarshan Europe B.V. (company filing)
  • The same November 12, 2025 board meeting will also consider the appointment of Mr. Sanjay K. Asher as an additional non executive, non independent director, liable to retire by rotation (company filing)
  • A board meeting will be held on September 23, 2025 to review unaudited financial results for the quarter ended June 30, 2025 and to consider appointing Mr. Apurva Chandra and Mr. Rajendra Mariwala as additional independent directors for shareholder approval (company filing)
  • A final dividend of INR 4.50 per equity share of face value INR 2.00 (225 percent) for FY 2024 25 was approved at the AGM held on September 29, 2025 (company announcement)
  • A special and extraordinary shareholders meeting will be held via postal ballot in India on December 25, 2025 (company notice)

Valuation Changes

  • Fair Value: Raised from ₹835 to ₹1,027, indicating a substantial upward revision in the target valuation.
  • Discount Rate: Increased slightly from 14.06 percent to 14.24 percent, reflecting a modest uptick in the perceived risk profile.
  • Revenue Growth: Reduced significantly from 55.44 percent to 20.31 percent, pointing to more conservative growth expectations.
  • Net Profit Margin: Trimmed marginally from 5.03 percent to 4.88 percent, suggesting slightly softer profitability assumptions.
  • Future P/E: Increased from 18.8x to 24.7x, indicating higher valuation multiples being assigned to forward earnings.

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Disclaimer

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