1. At a Glance
Sudarshan is the Picasso of pigments—globally No.3, splashing colors across industries. FY25 saw a big Heubach acquisition (€151.9M) and massive equity raise. Stock trades at a nosebleed P/E 136, while profits are fading like cheap dye.
2. Introduction with Hook
Imagine buying a Ferrari and realizing the fuel costs more than the car. Sudarshan’s FY25 story is just that: revenues ballooned to ₹3,346Cr, but net profits shrunk to ₹60Cr. Investors are still paying premium because, well, pigments are sexy now.
3. Business Model (WTF Do They Even Do?)
- Pigments: Organic, inorganic, and effect pigments.
- Industrial equipment: Pollution control, grinding systems.
- Global reach: 35% market share, third largest worldwide.
Basically, they sell colors, but at a cost that makes accountants cry.
4. Financials Overview
- Revenue FY25: ₹3,346Cr (↑32% YoY)
- Net Profit: ₹60Cr (↓83% YoY)
- OPM: 11%
- ROCE: 6.2%
- ROE: 3.1%
Growth? Yes. Profits? Missing in action.
5. Valuation
- P/E: 136
- P/B: 2.9x
Fair Value Range: ₹720–₹880. At current levels, you’re paying Versace prices for Holi colors.
6. What’s Cooking – News, Triggers, Drama
- Heubach Acquisition: Global pigment business bought for €151.9M.
- Equity raise: ₹995Cr infused.
- Promoter stake: Crashed to 16% (ouch).
- Integration & restructuring: Execution risk looms.
7. Balance Sheet
| Particulars | FY24 | FY25 |
|---|---|---|
| Assets | ₹2,346Cr | ₹9,731Cr |
| Liabilities | ₹1,197Cr | ₹6,291Cr |
| Borrowings | ₹467Cr | ₹2,378Cr |
| Net Worth | ₹1,149Cr | ₹3,440Cr |
Assets quadrupled post-deal, debt also swelled.
8. Cash Flow – Sab Number Game Hai
| Particulars | FY24 | FY25 |
|---|---|---|
| Operating CF | ₹193Cr | ₹37Cr |
| Investing CF | ₹279Cr | -₹1,548Cr |
| Financing CF | -₹446Cr | ₹2,596Cr |
Ops cash collapsed, investing cash burned—thank acquisition.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 3.1% |
| ROCE | 6.2% |
| PAT Margin | 2% |
| D/E | 0.7x |
| P/E | 136 |
Financial stress disguised under colorful presentations.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY24 | ₹2,539Cr | ₹318Cr | ₹357Cr |
| FY25 | ₹3,346Cr | ₹381Cr | ₹60Cr |
Revenue grew, profits tanked—classic acquisition digestion.
11. Peer Comparison
| Company | Revenue | PAT | P/E |
|---|---|---|---|
| Ultramarine | ₹718Cr | ₹79Cr | 21 |
| Heubach Color | ₹825Cr | ₹58Cr | 24 |
| Sudarshan | ₹3,346Cr | ₹60Cr | 136 |
Valuation screaming “premium,” earnings whisper “meh.”
12. Miscellaneous – Shareholding, Promoters
- Promoters: 16.4% (down from 35%)
- FIIs: 8.5%
- DIIs: 23.5%
- Public: 51.6%
Promoters diluted heavily to fund expansion.
13. EduInvesting Verdict™
Sudarshan is now a global pigment powerhouse—but with margins thinner than watercolors. Execution of Heubach integration is the real test. Until then, investors need nerves of steel (and a love for abstract art).
Written by EduInvesting Team | 27 July 2025
Tags: Sudarshan Chemical, Pigments, Heubach Acquisition, Global Expansion, EduInvesting Premium
