ICICI Securities set a target price of Rs 485 for Sumitomo Chemicals. The company reported an EBITDA of INR 1.86bn, down 15% year-on-year. Domestic demand fell due to a delayed monsoon and lower sowing area. Despite these challenges, the firm kept a buy rating, expecting long-term growth from new product launches.
ICICI Securities research report on Sumitomo Chemicals Sumitomo Chemicals (SCIL) reported EBITDA/adj. PAT of INR 1.86bn/INR 1.57bn, down 15%/11% YoY (down 20%/27% QoQ) vs. I-Sec estimates of EBITDA/PAT of INR 1.6/INR 1.3bn. Domestic demand remains subdued owing to a delayed monsoon (13% rainfall deficit till Sep'26-end) and lower acreage (~2% decline in kharif sowing area); exports declined 22% YoY. However, access to global parent-innovator, Sumitomo Chemical (SCC), and its technology, aggressive capex, well-diversified portfolio, new product launches, regulatory clearance for bio-stimulant, and SSC's plans to expand semiconductor chemicals in India could aid SCIL's long-term growth.
Outlook We lower our FY27E/FY28E EPS to bake in the challenging Indian agri environment, TP reduced to INR 485. BUY rating retained on attractive valuations. For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Sumitomo Chemicals - 2810026 - icici