Contract mfg, exports add to revenue visibility for Sumitomo Chemical

Revenue growth, higher share of specialty products to improve margins going ahead

The Sumitomo Chemical India stock gained about 14 per cent on Wednesday after brokerages upgraded the stock on the back of new order wins, product launches and focus on higher margin segments which is expected to drive revenue and earnings going ahead. The strong March quarter performance also boosted sentiment with some brokerages revising their earnings estimates for FY22 and FY23 by 10-15 per cent.

The key trigger for the stock is the capex plan which will entail setting up toll manufacturing capacities with investment of upto Rs 220 crore over the next couple of years; this is in addition