ICICI Direct's research report on Sumitomo Chemicals
Sumitomo Chemical India Ltd. (SCIL) stands out as a high-quality, high-growth entity within the Indian agrochemical (agri-chem) sector. SCIL’s core strengths lie in its robust domestic manufacturing capabilities and capital-efficient operations (RoCE: >18%; D/E: 0.02). More importantly, the non-negotiable strategic relationship the company has with its Japanese parent, SCC, allows it to leverage proprietary technology and products of a global innovator, thus keeping it ahead of the curve vs. peers.
Outlook
SCIL’s 9MFY26 results have been resilient despite a weak Q3 (9MFY26 saw 5% EBITDA growth; 9% PAT growth), which indicates that the company's strategy is successfully translating into material margin gains even while global industry peers face cyclical challenges. We initiate coverage with BUY; TP of INR 515.
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Sumitomo Chemicals - 1304026 - icici