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Sumitomo Chemical India Ltd

NSE: SUMICHEM BSE: 542920

407.50

(-2.34)%

Mon, 02 Feb 2026, 05:02 am

Analysis

dividend

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Pros

  • Dividends after 3 years are expected to be well covered by earnings (4.9x coverage).
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Cons

  • Sumitomo Chemical India is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
  • No need to calculate the sustainability of Sumitomo Chemical India's dividends as it is not paying a notable one for India.
  • Sumitomo Chemical India is not paying a notable dividend for India, therefore no need to check if the payments are stable.
  • Sumitomo Chemical India's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Sumitomo Chemical India's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Sumitomo Chemical India's earnings are expected to grow significantly at over 20% yearly.
  • Sumitomo Chemical India's earnings growth is expected to exceed the India market average.
  • Sumitomo Chemical India's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Sumitomo Chemical India's earnings are expected to exceed the low risk growth rate next year.
  • Sumitomo Chemical India's net income is expected to increase by more than 50% in 2 years time.
  • Sumitomo Chemical India is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
  • Performance (ROE) is expected to be above the current IN Chemicals industry average.
  • An improvement in Sumitomo Chemical India's performance (ROE) is expected over the next 3 years.
  • Sumitomo Chemical India's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Sumitomo Chemical India is expected to increase but not above the 50% threshold in 2 years time.
  • Sumitomo Chemical India's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Sumitomo Chemical India's revenue is expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Sumitomo Chemical India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sumitomo Chemical India is profitable, therefore cash runway is not a concern.
  • Sumitomo Chemical India is profitable, therefore cash runway is not a concern.
  • Sumitomo Chemical India has no debt, it does not need to be covered by operating cash flow.
  • Sumitomo Chemical India has no debt, it does not need to be covered by short term assets.
  • Sumitomo Chemical India's cash and other short term assets cover its long term commitments.
  • Sumitomo Chemical India currently has no debt however we can't compare to 5 years ago as we have no data for that period.
  • Sumitomo Chemical India has no debt, therefore coverage of interest payments is not a concern.
  • Sumitomo Chemical India has no debt.
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Cons

  • High level of physical assets or inventory.

management

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Pros

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    Cons

    • The average tenure for the Sumitomo Chemical India board of directors is less than 3 years, this suggests a new board.
    • The average tenure for the Sumitomo Chemical India management team is less than 2 years, this suggests a new team.

    misc

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    Pros

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      Cons

      • Sumitomo Chemical India has significant price volatility in the past 3 months.

      past

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      Pros

      • Sumitomo Chemical India used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
      • Sumitomo Chemical India's earnings growth has exceeded the IN Chemicals industry average in the past year (23.4% vs 9.1%).
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      Cons

      • Sumitomo Chemical India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

      value

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      Pros

      • NSEI:SUMICHEM is up 29.8% outperforming the Chemicals industry which returned 6.9% over the past month.
      • NSEI:SUMICHEM is up 29.8% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Sumitomo Chemical India's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Sumitomo Chemical India's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Sumitomo Chemical India is overvalued based on assets compared to the IN Chemicals industry average.
      • Sumitomo Chemical India is poor value based on expected growth next year.
      • Sumitomo Chemical India is overvalued based on earnings compared to the IN Chemicals industry average.
      • Sumitomo Chemical India is overvalued based on earnings compared to the India market.

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