Vijay Kedia portfolio stock soars 11%, hits new high; up 63% from March low

Shares of Sudarshan Chemical hit a record high of ₹1,297.40, as they rallied 11% on the BSE in Monday's intra-day trade, surpassing its previous high of ₹1,235 touched on October 14, 2024.

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).