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Business Standard
2 days ago
- Business
- Business Standard
Vijay Kedia portfolio stock soars 11%, hits new high; up 63% from March low
Share price of Sudarshan Chemical Industries today Shares of Sudarshan Chemical Industries hit a record high of ₹1,297.40, as they rallied 11 per cent on the BSE in Monday's intra-day trade amid heavy volumes. The stock price of this smallcap dyes and pigments company surpassed its previous high of ₹1,235 touched on October 14, 2024. It has bounced back 63 per cent from its March 2025 low price of ₹795.75 on the BSE. At 02:06 PM; Sudarshan Chemical Industries was quoting 8 per cent higher at ₹1,267.55, as compared to 0.32 per cent rise in the BSE Sensex. A combined 830,000 equity shares changed hands on the NSE and BSE. Vijay Kishanlal Kedia held over 1% stake in Sudarshan Chemical Industries Ace investor Vijay Kishanlal Kedia held 1 million equity shares or 1.27 per cent stake in Sudarshan Chemical Industries at the end of March 31, 2025 quarter, the shareholding pattern data shows. Besides Vijay Kedia, Akash Bhanshali (7.13 per cent), Vijaykumar Ramchandra Rathi (2.66 per cent stake), Rohit Kishor Rathi (2.62 per cent) and Lata Bhanshali (1.46 per cent) held more than 1 per cent stake in Sudarshan Chemical Industries, data shows. Check Ganga Bath Fittings IPO allotment status Reasons for delay in Sudarshan Chemical's Q4 results Sudarshan Chemical Industries entered into a definitive agreement on October 11, 2024, through its wholly-owned subsidiary Sudarshan Europe B.V., the Netherlands (SEBV), to acquire the Global Pigment Business Operations of the Heubach Group of Germany (Heubach Group) on a debt-free basis for a total consideration of EURO 127.5 million (approximately ₹1,180 crore). Pursuant to the acquisition, the company acquired and took control of 50 direct and step–down subsidiaries and 17 manufacturing sites from Heubach Group across various geographies across the globe. Prior to acquisition by the company, in April 2024, the German entities of the Heubach Group viz. a) Heubach Colorants Germany GmbH, (b) Heubach GmbH (c) Dr. Hans Heubach GmbH, and (iv) Heubach Group GmbH were declared insolvent and the Insolvency Administrator administered the process of sale of assets and business operations of German Entities in terms of provisions of the German Insolvency Law. The acquisition was funded through a mix of equity and debt. Accordingly, Sudharshan's Board of Directors approved a proposal for raising funds of ₹1,000 crore plus green shoe option up to 25 per cent by way of issuance of equity shares or any other eligible securities through permissible modes. On March 03, 2025, the company announced the completion of the acquisition of Global Pigment Business Operations of Heubach Group of Germany. Prior to this acquisition, the company had 8 direct and step-down subsidiaries. The company is required to submit audited financial results for FY 2024-25, including the newly acquired subsidiaries, by May 30, 2025. However, because of the insolvency impact, extensive financial reporting integration, complexities involved in business combination accounting, the company said it would not be able to meet the deadline. The company further said it shall declare its financial results for financial year ended March 31, 2025 post completion of the above-mentioned activities and the intimation about the same shall be provided to the Stock Exchanges in due course. CRISIL Ratings Rationale The acquisition will help Sudharshan emerge as a leading global pigment company with a presence across 19 countries, as well as 17 manufacturing facilities in 11 countries. The Heubach group is the second largest player in the global pigment sector and is estimated to have reported revenues of close to around EURO 800 million. However, the Heubach group faced financial challenges recently, due to headwinds from the Ukraine-Russia conflict leading to high energy prices, which was followed by weak demand scenario in key European markets. This impacted profitability and along with high debt levels led to the group filing for bankruptcy. Post-acquisition, Sudharshan's group revenues will witness a material increase with inclusion of Heubach group turnover and its market position in the pigments business will solidify. Revenue growth of the company's existing business is expected to continue however, it may moderate owing to looming geo-political headwinds. While the operating margin of existing business will sustain at current level of around 13 per cent, the consolidated operating margin is expected to reduce due to initial lower operating profitability of the Heubach Group, as well as post-acquisition spend on turnaround and re-optimsation of manufacturing operations. As a result, during initial period, the financial risk profile is expected to moderate to average levels, from earlier comfortable levels, CRSIL Ratings said in report dated April 19, 2025. During the nine months ended December 31, 2024, Sudharshan registered a profit after tax of ₹102 crore (₹54 crore in corresponding period of fiscal 2024) on net sales of ₹1,996 crore (₹1,775 crore). About Sudarshan Chemical Industries Sudarshan Chemical Industries is a globally renowned pigment player and the largest in India, manufacturing a wide range of organic and inorganic pigments and mica-based effect pigments. The company, which was established in 1951, remained focused on the domestic market till 2006. The joint venture with Dainippon Ink Corporation (DIC) was operational between 1990 and 2006; post which SCIL went global, establishing its footprint in North America Europe and other geographies. The company has two manufacturing facilities in Roha and Mahad (both in Maharashtra).
Mint
2 days ago
- Business
- Mint
Vijay Kedia portfolio stock Sudarshan Chemicals jumps 11% to hit record high; up 66% from 52-week low
Shares of Sudarshan Chemical Industries surged nearly 11 percent on June 9 to hit a fresh 52-week high of ₹ 1,298 amid robust trading volumes. The sharp rally came despite a recent delay in the company's audited financial results, highlighting strong investor confidence, partly driven by the stock's connection to ace investor Vijay Kedia. Sudarshan Chemicals has seen a remarkable uptrend in recent months. From its 52-week low of ₹ 779.95 touched in June 2024, the stock has now gained over 66 percent. In just the first week of June 2025 alone, it has advanced 9.4 percent, continuing a four-month winning streak. In May, the stock had jumped more than 15 percent, following gains of 3.5 percent in April and 14.5 percent in March. Prior to this rally, it had witnessed a brief correction, falling 13.4 percent in February and 12.6 percent in January. Over the past year, the chemical stock has delivered a return of 48 percent, far outperforming broader market indices. As per the March 2025 quarter shareholding data, Vijay Kedia held a 1.27 percent stake in Sudarshan Chemical Industries. Though slightly down from 1.44 percent in the December 2024 quarter, his continued presence in the stock reinforces investor confidence. Kedia, known for his high-conviction bets in small and midcap companies, has been associated with Sudarshan Chemicals for several quarters. Late last month, Sudarshan Chemicals announced a delay in submitting its audited financial results for FY25. The delay is linked to the complexities following its acquisition of the global pigment business of Germany's Heubach Group. The deal, finalized in March 2025, added around 60 subsidiaries and 17 manufacturing sites to Sudarshan's global footprint. According to the company, several factors contributed to the delay. Firstly, some German entities involved in the deal were under insolvency proceedings, which made it difficult to obtain financial and regulatory records on time. Secondly, the post-acquisition integration process was extensive, involving aligning financial systems, accounting standards, and audit processes across multiple geographies. Lastly, the business combination accounting itself proved complex, as the acquisition included both asset and share purchases across multiple legal structures. Sudarshan Chemicals has formally requested an extension from stock exchanges to submit its results, which are now expected after completion of these consolidation activities. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
