Last Updated : Jun 09, 2020 08:25 AM IST | Source: Moneycontrol.com

Buy Sumitomo Chemicals; target of Rs 317: ICICI Securities

ICICI Securities recommended hold rating on Sumitomo Chemicals with a target price of Rs 317 in its research report dated June 08, 2020.

Broker Research @moneycontrolcom

live

bselive
nselive

Volume

Todays L/H

More

ICICI Securities research report on Sumitomo Chemicals

Three highlights from Sumitomo Q4FY20: (1) The company reported strong revenue growth of 5.7% in-spite of lockdown and plans to launch multiple products in FY21, (2) With lower input prices and launch of differentiated products, EBITDA margin improved 170bps in FY20 and (3) Reduction in net working capital days to 112 in FY20 from 121 in FY19. We also believe the company is on track to gain market share in FY21 from smaller players. It will also benefit from financial discipline i.e. Net cash Balance Sheet, reduction in working capital days and Capex of ~2% of net sales.

Outlook

Maintain BUY with DCF-based TP of Rs317 (implied target P/E 47x FY22E; Earlier TP- Rs263).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Moneycontrol Ready Reckoner

Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.

Download a copy