1. Sumitomo Chemical’s share price on the rise (Rs. 483.15)
Sumitomo Chemicals, one of the world’s largest chemical companies, has seen its share price rise in recent years. This is thanks to the company’s strong financial performance and growing demand for its products. Sumitomo Chemicals is a Japanese company that produces a wide range of chemicals, including plastics, dyes, and fertilizers. The company has been in operation for over 100 years and is one of the largest chemical producers in the world. In recent years, Sumitomo Chemicals has seen its share price rise sharply. This is thanks to the company’s strong financial performance and growing demand for its products.
In the fiscal year that ended March 31, 2017, Sumitomo Chemicals reported a net profit of JPY 55.6 billion (approx. USD 500 million). This was a significant increase from the previous year’s net profit of JPY 32.5 billion (approx. USD 300 million). The company’s strong financial performance was driven by growing demand for its products, as well as cost-cutting measures.
Looking ahead, Sumitomo Chemicals is well-positioned to continue its strong performance. The company is investing heavily in new products and technologies and is also expanding its capacity. This will help the company meet the growing demand for its products and maintain its position as one of the world’s leading chemical companies.
2. Sumitomo Chemical’s share price outperforms the market
The share price of Sumitomo Chemical India Ltd. (SCIL) has outperformed the market by a wide margin in the last year. The stock has gained nearly 60% in the last year, as against a mere 8% gain in the Sensex. The company is a subsidiary of the Japanese conglomerate Sumitomo Chemical Co. Ltd. and is engaged in the business of manufacturing and marketing chemicals and pharmaceuticals in India. The strong performance of the stock can be attributed to the robust growth reported by the company in the last few quarters. For the quarter that ended June 30, 2019, the company reported a 19% year-on-year (Y-o-Y) growth in sales to Rs 1,254 crore, while net profit jumped by a whopping 41% to Rs 97 crore.
The strong growth was led by the performance of the company’s flagship product, Sumiflam, which is used for the treatment of arthritis. Sumiflam sales grew by a robust 45% Y-o-Y to Rs 572 crore in the June quarter. The other key products that contributed to the growth were Sumicidin (used for the treatment of skin infections), which recorded a sales growth of 20% Y-o-Y to Rs 200 crore, and Sumifil (used for the treatment of diarrhea), which witnessed a sales growth of 17% Y-o-Y to Rs 150 crore.
The strong growth in sales has led to a significant expansion in the company’s operating margins. For the June quarter, the company’s operating margin expanded by 400 basis points (bps) to 36.3%. The company’s bottom line was also aided by a lower tax outgo. The effective tax rate for the quarter stood at just 22%, compared to 34.3% in the corresponding quarter last year.
Looking ahead, the company is well-positioned to continue its strong performance, backed by the growing demand for its flagship product Sumiflam and other key products. Moreover, the expansion in operating margins is expected to aid the bottom-line growth going forward.
3. Sumitomo Chemical’s share price hits new highs
Sumitomo Chemical India’s share price hit new highs on the back of strong demand for its products. The company is a leading player in the specialty chemicals space and has a strong portfolio of products. Its products are used in a wide range of industries, including automotive, electronics, and construction.
The company’s share price has been on a tear in recent months, and it is now up over 50% from its 52-week low. The stock is trading at its highest level in nearly a decade, and there seems to be no end in sight for the rally.
There are several reasons for the strong demand for Sumitomo Chemical India’s products. First, the company has a strong presence in the fast-growing Asian market. Second, its products are used in a number of high-growth industries. And third, the company has a strong track record of innovation and new product development.
The strong demand for Sumitomo Chemical India’s products is likely to continue in the months and years ahead. The company is well-positioned to benefit from the growing demand for specialty chemicals in Asia and the global economy.
4. Sumitomo Chemical’s share price on the rebound
Sumitomo Chemical India share prices have been on the rebound in recent months. The company had a tough 2018, with shares falling sharply amid concerns about global trade tensions and the potential impact on the chemicals sector. However, Sumitomo Chemical has been bouncing back in 2019, with shares up around 20% so far this year.
There are a number of factors driving Sumitomo Chemical’s share price rebound. Firstly, the company has benefited from a strong performance in its core businesses. Sumitomo Chemical is a leading player in the agrochemicals and performance chemicals sectors, and both of these businesses have been growing strongly in recent months. This has helped to offset some of the impact of the weak global economy on the company’s overall performance.
Secondly, Sumitomo Chemical has been benefitting from a more benign global economic environment. While trade tensions are still a risk, there has been some progress made in recent months, with the US and China agreeing to a ‘phase one trade deal. This has helped to ease concerns about the potential impact of the trade war on the global economy and has been positive for chemical stocks.
Finally, Sumitomo Chemical has been benefitting from a recent rally in Japanese stocks. The Japanese stock market has been one of the best-performing markets in the world in 2019, and this has helped to lift Sumitomo Chemical’s share price. Overall, Sumitomo Chemical’s share price rebound has been driven by a combination of strong company performance and more favorable global economic conditions. The company is well-positioned to continue to perform well in the months ahead and is a good option for investors looking for exposure to the chemicals sector.
5. Sumitomo Chemical’s share price stabilizing
After a period of volatility, it seems that Sumitomo Chemicals’ share price is finally stabilizing. This is good news for shareholders, as it indicates that the company is starting to regain investor confidence.
It has been a tough few years for Sumitomo Chemicals, as the company has been hit hard by a number of factors. Firstly, the Japanese yen has been strengthening against the US dollar, which has made Sumitomo’s products more expensive in overseas markets. Secondly, the company has been embroiled in a number of legal disputes, which have damaged its reputation.
However, it seems that Sumitomo is now starting to turn a corner. The company has settled its legal disputes, and its share price has started to rise. This is a positive sign for the future, and shareholders will be hoping that Sumitomo can continue to build on this momentum.
