Stratzy's Stock Idea: Buy Sumitomo Chem India with Target Rs 500

On June 5th, Stratzy issued a buy call on Sumitomo Chemical India, recommending investors to purchase the stock at its current market price of Rs 470.2. Stratzy's analysis indicates a bullish outlook for the company, with a target price set at Rs 500. This represents a potential upside of approximately 6.33%. The recommendation is based on strong fundamentals and the expectation of continued growth in the company's business.

About Sumitomo Chem India:

Sumitomo Chemical India Limited (SCIL) is a leading manufacturer of chemicals, fertilizers, and crop protection products in India. It is a subsidiary of Sumitomo Chemical Company Limited, Japan, a global chemical conglomerate. SCIL operates in three primary business segments: Basic Chemicals, Performance Products, and Agriculture-related Products. The company's portfolio includes a wide range of products, including polymers, fertilizers, pesticides, and specialty chemicals. SCIL has a strong presence in the domestic Indian market and also exports its products to over 25 countries worldwide. With a commitment to innovation and sustainability, SCIL aims to provide its customers with high-quality products and solutions.

52 Week Price Trend:

Sumitomo Chemical India's (SCI) current market price (CMP) of Rs 470.2 is hovering near its 52-week high of Rs 466.95. The stock has been exhibiting positive momentum and has been trading above its moving averages. However, investors should note the 52-week low of Rs 370, indicating a potential downside risk. Technical analysis suggests that SCI could face resistance at the 52-week high, and a breakout above this level could signal further upside potential. Conversely, a decline below the 52-week low could trigger a bearish trend. Investors considering SCI should monitor its performance closely and consider both the upside and downside risks before making investment decisions.

Stratzy's MOST Analysis:

Based on Stratzy's MOST Framework, SUMICHEM has received an AA- rating. This rating indicates that the company has a low fundamental risk. The rating is based on an assessment of SUMICHEM's management, outlook, safety, and trend. The company has strong management, a positive outlook, a safe and stable business model, and a positive trend. These factors give investors confidence that SUMICHEM is a low-risk investment with strong growth potential.

Company's Fundamentals:

Sumitomo Chem India (NSE: SUMICHEM) is a publicly traded company on the National Stock Exchange of India (NSE). As of the mentioned date, the company had a Stock PE ratio of 57.68, indicating that its share price is trading at 57.68 times its annual earnings per share. Its PB Ratio of 7.61 suggests that the market value of the company's assets is 7.61 times its book value. Finally, the Dividend Yield of 0.31% represents the annual dividend paid out as a percentage of the current share price, indicating a modest dividend income for investors.

Fundamental and Technical information provided in this blog were last updated on 05 Jun, 2024

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