Sumitomo Chemical - Maintain Buy On Healthy Long-Term Fundamentals: Nirmal Bang

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 have maintained FY25E/FY26E and introduced FY27E besides rolling over estimates and target price to Sept’26E. We maintain Buy on Sumitomo Chemicals India Ltd. with a revised target price of Rs 629 using an unchanged PE of 38 times on Sept’26E EPS of Rs 16.55 (June-26E EPS of Rs 15.43 assigned earlier) versus five-year median PE of 41.5 times. Our target PE is supported by FY24-FY27E EPS compound annual growth rate of 31.8%. Our Buy is based on an improved outlook for Sumitomo Chemical’s domestic crop protection chemical business, stabilising costs/prices and robust volume growth in 20s. This is positive for topline/earnings as per channel checks. Other catalysts are progress in monsoon/2% growth in Kharif cropped area, which is likely to aid healthy pesticides demand and unlock gains from the new products launched in the last two years. Sumitomo Chemical launched six new products in FY24 – three herbicides, one insecticide and two fungicides; it has launched 13 new products in the last 18 months. The parent Sumitomo Chemical's thrust on India as a focus market, Bio/Specialty products and support for the company’s exports to the parent and other markets are added positives..Click on the attachment to read the full report:.Raymond Lifestyle - On A Transformative Journey: 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 - Maintain Buy On Healthy Long-Term Fundamentals: Nirmal Bang

The brokerage revises its target price to Rs 629 using an unchanged PE of 38 times on Sept’26E EPS of Rs 16.55 (June-26E EPS of Rs 15.43 assigned earlier) versus five-year median PE of 41.5 times.

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Sumitomo Chemical - Maintain Buy On Healthy Long-Term Fundamentals: Nirmal Bang

The brokerage revises its target price to Rs 629 using an unchanged PE of 38 times on Sept’26E EPS of Rs 16.55 (June-26E EPS of Rs 15.43 assigned earlier) versus five-year median PE of 41.5 times.

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