Leading agrochemical company Sumitomo Chemical India Ltd’s shares surged on Monday reaching a high of ₹482.
What Happened? The shares traded over 11% higher to hit an intraday high on Monday after opening the week at a valuation of ₹428.55.
Sumitomo Chemical India Ltd saw a tremendous surge in volume, with figures hitting 35.8 lakh shares by Monday on the NSE — a 15.92 times surge over the two-week average daily volume of 2.25 lakh shares.
It isn't immediately clear what is driving the latest surge in the share price. The agrochemical giant on Feb. 4 announced its quarterly earnings report with topline numbers below analyst estimates.
That said, brokerages like ICICI Direct and Prabhudas Lilladher both put out ‘Buy’ ratings for the stock, seeing a host of key triggers that are likely to drive future price performance.
Get all the latest Share Market trends and news to set you up for the week ahead.
The company has a strong domestic presence with over 16,000 distributors, 40,000 dealers, and 700 stock-keeping units (SKU). It also exports to over 60 countries.
It is investing over ₹120 crore to manufacture five products for its parent company and global affiliates.
The agricultural sector player also plans to invest 15% of the consolidated EBITDA every year to upgrade its manufacturing facilities and expand capacity to cater to the growing demand for chemicals.
Sumitomo Chemical’s growth plans have helped in improving its revenue. Over the last three years, revenue has grown at a CAGR of 8.3%, driven by higher demand. The net profit has also been rising at a CAGR of 27.4% during the same time.
Price Action: Sumitomo Chemical India Ltd shares were trading 11.29% higher at ₹475.20 when markets closed on Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.