X FACTOR: Sudarshan has received India Mahatma Award 2020 for CSR Excellence.
Technical Highlights
1. The company has RSI (Relative Strength Index) at RS. 46.31.
2. 50 day MA (Moving Average) acted perfectly as support initially and then as resistance.
3. Immediate support can be seen at RS. 643.
4. Immediate resistance can be seen at RS. 709 and the next resistance at RS. 777.
5. Volumes of the stocks are low.
6. The stock might move in between its immediate support and resistance for some more days.
Financial Highlights
1. The company has been maintaining a steady growth rate in terms of its revenue and operating profit.
2. Structural reduction in finance cost signifies the gradual shift towards internal funding from the
external debt-based structure.
3. Dividend distribution has seen an increasing trend despite steady earnings per share from 2019 to 221.
4. Even during the years of economic slowdown due to covid, a significant fall in PAT has been averted.
Future Prospects
1. The pigment industry is a large market of ~USD 8.6 bn with a steady growth of 3-4%. The industry is going through significant restructuring and tailwinds, and Indian players are poised to benefit.
2. Sudrashan rolled out a wide range of High-Performance Pigments and Cosmetic products which were non-existent a
decade ago. The company’s investment in the pigment technical marketing capabilities during this period helped in growing specialty pigments
3. The company plans to implement Rs. 600 cr expansion plan by the year 2022.
4. South Asia region is currently the center of new infrastructure projects with an infrastructure industry CAGR of 6%, and also hosts as a textile industry hub which provides plenty of opportunity for this industry and its
players.
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