Sudarshan Chemical Q4 Review - Revenue Beat Impressive: ICICI Securities

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ICICI Securities Report

Sudarshan Chemical Industries Ltd.'s Q4 FY21 Ebitda increased by a strong 72% YoY to Rs 875 million on recovery in revenues across segments, which should give confidence on its ability to drive Rs 10 billion-12 billion additional revenues in next three to four years.

Though near-term gross profit margins may come under pressure, it would only be transient.

The company was able to expand its Ebitda margin by 320 basis points despite lower gross profit margin on higher operating leverage, and we believe the company can achieve 18-20% Ebitda margin over next few years (an upside risk to our estimates).

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