And Pavecto, this is not one? - Sumitomo Chemical and Nufarm Limited Sign Agreement on New Fungicide Solutions for Germany, the United Kingdom and Poland – Sumitomo Chemical Agro Europe?
That’s neither here nor there, no? I had seen this chart which you posted earlier too. It’s good input and makes one think about it further. Of course, as @Chandragupta pointed out, Sumitomo is a diversified conglomerate. They are not that in India. So it’s not an apples-to-apples comparison.
My question was only about your point that was critical of their innovation capabilities. My reading indicates that is not the case and I wanted to be better informed. But since you haven’t shared specific inputs there, I guess we can leave it here.
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Have to say, not quite the done thing to go back and edit an earlier post after we have exchanged messages subsequently. It’s ok if you don’t want to share and have a different opinion, but let’s be transparent here.
I am referring to this edit - “And ,also humbly speaking, I would not like to be discuss further about this company. For me it is cyclical generic company where parent is struggling and has a bad track record of last 1-2 decades. Hence would like to stay away as don’t want to waste more time on this.”
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I think you are wrong here…
Nirmal Bang view on SCIL
We have marginally revised EPS estimates and raised target PE from 32x FY26E to 38xJune’26E based on healthy EPS CAGR of 40% over FY24-FY26 - implies PEG of 0.95x. The higher multiple is on the back of improved outlook for FY25E/FY26E in terms of margins and earnings growth. The new PE compares with median PE of 42.1x.
Key catalysts:
Healthy monsoon forecast – already the deficit has turned into a surplus for Kharif FY25,
as per latest rainfall updates.
La Nina is likely to set in over the next one month which is a positive for agronomical
conditions.
SCIL launched 6 new products in FY24 – 3 herbicides, 1 insecticide and 2 fungicides
Agrochemical input prices and de-stocking have mostly bottomed out, as per our channel
checks. Also, SCC Japan’s latest PPT has presented a bullish outlook based on
revival in its CPC business for April-March’2025 (FY24 as per SCC norm)
SCC Japan is also focusing on more sustainable bio and botanical products for crop
protection based on its vast experience and R&D expertise; this is in line with its focus on
regenerative agriculture, as per SCC’s April’24 strategy PPT.
SCIL’s new product launches as well as capacity creation are aimed at securing further
business in Agrochem and Specialty Chemicals. SCC Japan is shifting focus to
regenerative agriculture, specialty chemicals for mobile display (OLED) and power
semiconductors - according to SCC’s strategy PPT.