Sumitomo Chemical - Nirmal Bang Upgrades To A Buy On Revival In Crop Protection Chemicals

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.We are raising Sumitomo Chemicals India Ltd. to Buy from Accumulate, based on revised estimates and target price. This is based on likely revival in Sumitomo Chemicals’ fortunes by FY26E. This could offset the pressure on margins in FY25E, much as we expect YoY growth in revenue/margins and earnings from a beaten down FY24E base. We have raised FY26E by 2.8% based on improved revenue growth/margins, after cutting FY25E by 6.3%. The FY24E-FY26E earnings per share compound annual growth rate looks healthy at 41.8%, albeit after a 32% decline in FY24E. .We have raised our target price for Sumitomo Chemicals by 13.4% to Rs 440 on estimates rolled over to FY26E based on 32 times price-to-earning, versus old PE of 31 times. Our new PE is at a discount of 5% to Sumitomo Chemicals’ SD-1 PE.We expect Sumitomo Chemicals to be a key beneficiary from the likely revival in the prospects for Indian CPC sector’s revenue growth. This above revival is based on expectations of a healthy monsoon/Kharif crop predicated on the more benign LA Nina replacing El Nino in H1 FY25..Click on the attachment to read the full report:.Shree Cement - Expanding Footprint Largely In Existing Markets: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Sumitomo Chemical - Nirmal Bang Upgrades To A Buy On Revival In Crop Protection Chemicals

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