Top Stocks Today : IIFL Securities has Buy call on Sumitomo Chem India - May 28

IIFL Securities has recommended a "buy" rating for Sumitomo Chemical India, setting a target price of Rs 500. The current market price is Rs 481.65, indicating potential upside. The firm cites Sumitomo's strong performance in the agrochemical segment and its focus on innovation as key reasons for their bullish outlook.

About Sumitomo Chem India:

Sumitomo Chemical India (SCIL) is a subsidiary of Sumitomo Chemical Company, Limited, Japan. It manufactures and markets a diverse range of agrochemicals, including insecticides, fungicides, herbicides, and plant growth regulators. SCIL also produces basic chemicals, such as sulfuric acid, phosphoric acid, and nitric acid. The company has a presence in India for over 40 years and has a manufacturing facility in Tamil Nadu. SCIL's products are used in various sectors, including agriculture, horticulture, and industrial applications.

52 Week Price Trend:

Sumitomo Chemical India's CMP of Rs 481.65 lies above its 52-week high of Rs 466.95. This indicates a strong performance and market bullishness towards the company. However, investors should exercise caution as the stock has witnessed a significant rally in a short span of time. It is advisable to monitor the stock's movement closely and consider its fundamentals before making any investment decisions. Despite the recent surge, the stock's 52-week low of Rs 370 may serve as a potential support level in case of any market corrections.

Stratzy's MOST Analysis:

Stratzy's MOST framework rates SUMICHEM AA-, indicating medium fundamental risk. The framework evaluates stocks based on Management, Outlook, Safety, and Trend. SUMICHEM's strong management, positive outlook, and stable safety measures contribute to its high rating. While the stock may face some volatility, its overall fundamentals are solid, suggesting a relatively low risk for investors.

Company's Fundamentals:

Sumitomo Chem India, listed on NSE as SUMICHEM, has a Stock PE (Price to Earnings) ratio of 57.68, indicating that its share price is 57.68 times its annual earnings per share. The PB Ratio (Price to Book) of 7.61 suggests that the company's market value is 7.61 times its book value (total assets minus liabilities). Its Dividend Yield of 0.31% represents the annual dividend paid out as a percentage of its share price, implying a modest income return for investors.

Fundamental and Technical information provided in this blog were last updated on 28 May, 2024

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