This article we can explore the possibility of Sumitomo chemical India Ltd as a multibagger 2022 Stock based on Value Investing principles.
| Website | https://sumichem.co.in |
| CMP | Rs. 427.00 |
About Sumitomo Chemical India Ltd
Sumitomo Chemical India Ltd. (SCIL) (CIN: L24110MH2000PLC124224) manufactures, imports and markets products for Crop Protection, Grain Fumigation, Rodent Control, Bio Pesticides, Environmental Health, Professional Pest control and Feed Additives for use in India. SCIL has also marked its presence in Africa and several other geographies of the world.
Company’s product range comprises of conventional chemistry sourced from the parent company, Sumitomo Chemical Company and biological products sourced from USA based subsidiary, Valent Biosciences LLC, a leader in producing a range of naturally occurring, environmentally compatible pesticides and plant growth regulators, for over 40 years. Company also produce many technical grade pesticides in our state-of-the-art manufacturing units with indigenous R&D facility.
Committed to consistent quality, SCIL provide a unique offering of new generation as well as conventional and biological products to customers. Sumitomo Chemical Company was founded with the dual goals of eliminating pollution and helping increase crop yields, has upheld this founding principle as it has evolved in keeping with the changing times.
The vision of the company is to be a trusted market leader in Indian crop-protection sector, To develop a vibrant corporate culture and Endeavor to achieve success and sustainability through innovation & excellence.
Sumitomo Chemical Company Limited (SCC), the parent company of Sumitomo Chemical India Limited was established in 1913 to manufacture fertilizers from sulphur dioxide emitted from smelting operations at the Besshi copper mine in Niihama, Ehime Prefecture, with the aim of solving environmental problems caused by the emissions. The mine was owned by Sumitomo a company which dates back to the 16th Century.
During last 100 years journey, Sumitomo Chemical has expanded in several chemical-related sectors and is among one of the leading global chemical companies recognized for its R&D innovation capabilities and specialty product focus; Sumitomo Chemical is listed on Tokyo Stock Exchange since the year 1949 as independently and professionally run company with high standards of corporate governance and contributing to society at large.
SCC offers a diverse range of products globally in the fields of petrochemicals, energy and functional materials, IT related chemicals and materials, health and crop sciences products and pharmaceuticals.
The SCC parentage has also brought with it, a consistent commitment for quality and customers.
Products & Services
- Crop Protection
- Biological
- Plant Nutrition & Growth Regulators
- Fumigants & Rodenticides
- Farmer’s Safety
- Household Pesticides
- Animal Nutrition
Profit & loss
Warren Buffett Checklist
| Factor | Value |
| Economic moat | Good |
| Growth | Average |
| Valuation | Average |
| Debt | Good |
| Integrity | Good |
Positives
- Company is reputed Brand with No Debts & Steady Growth
- Company has delivered good profit growth of 35% CAGR over last 5 years
- Company have High ROCE & ROE
- Company is undergoing Capacity Expansions
Negatives
- Stock is over-valued in terms of Book Value Ratio 12X
- Company is over-valued in terms of PE Ratio 51+
- Company have low Intrinsic Value Discount of 30%
Summary
As per the Expansion & Value Investing grounds the company is having Multibagger Properties.
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Multibagger with Expansion Plans | Low PE Ratio | Low Book Value Ratio | Intrinsic Value Discount 70 % | PLUS Free Value Investing Education