CMP: 525

Sudarshan Chemical Industries Limited manufactures color pigments, which are used in paints, printing inks, plastics, rubber artist materials, and textile printing. The Group also manufactures a basic range of pesticides.

Sudarshan Chemical is a good buy in small-cap space. Its currently trading at a P/E of less than 7 with good dividend yields of well over 2% in the last 12 months. Liabilities are manageable. Revenues have grown from 384 Crores to 707 Crores in the last 5 years. Profits have rocketed from 4 Crores to 56 Crores backed by strong NPM growth. NPM has grown impressively from little over 1% to almost 8% over 5 years. Growth has stagnated a little in the last 2 years, but is still a good bet for long term. Buy and accumulate on dips for long term gains.