Sumitomo Chemicals Q3 Review - Healthy Beat; Long-Term Growth Intact: Nirmal Bang
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Nirmal Bang Report
Sumitomo Chemicals India Ltd.'s Q3 FY22 profit after tax was a 43.2% beat versus our estimate due to the 14.2% beat on revenue and 310 basis points beat on Ebitda margin despite 43 bps miss on gross margin.
healthy long-term prospects, supported by revenue/earnings per share compound annual growth rate of 16.8%/27.3% over FY22E-24E,
return on invested capital of 48.3%/46.3% in FY23E/FY24E and
healthy growth in net cash to Rs 13.73 billion by FY24E.
Sumitomo Chemicals offers multi national company proxy exposure in the Indian crop protection chemical sector based on the potential for
growth in premium/generic products across categories in domestic/export markets and
new orders from Sumitomo Chemical (Japan) for the five molecules contracted to commence from FY24E.
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