Sumitomo Chemi. (SUMICHEM)

FairStock Score: 61/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Sumitomo Chemi. as a quality agrochemical franchise with a fortress balance sheet but a demanding price. The numbers show a business earning an ROE of 18.33% and ROCE of 25.14%, while debt/equity is only 0.02. That combination tells me it does not need much leverage to generate returns. The Piotroski F-Score is 7/9 and Altman Z-Score is 5.13, so financial distress is not my worry. Latest quarter sales were ₹552 Cr and net profit ₹75 Cr, and free cash flow was ₹61 Cr. Profit growth of 20.42% outpaced sales growth of 1.33%, which is a positive sign, though I want to see whether that comes from sustainable operations or one-off mix. The problem for a Graham-style buyer is the price. At ₹564.95, market cap is ₹28,199 Cr. The Graham Number is only ₹117.81, leaving a margin of safety of -240.50%. The P/E is 48.54, P/B is 8.32, and EV/EBITDA is 29.42. DCF intrinsic value at ₹11.99 is far below the market price. The PEG ratio of 0.54 looks tempting against profit growth, but 5-year revenue CAGR is just 5.36%, and current sales growth is 1.33%, so the top line is not racing. Dividend yield is only 0.23%, and promoter holding is 75.00%. FairStock Score 61/100 says steady, not spectacular. So I see a well-financed, high-return business with a possible moat from agrochemicals, but the market already pays a premium. I would wait for a much wider margin of safety or clearer sales acceleration before buying.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer