Vijay Kedia portfolio: In last one week, this chemical share came down from ?689.65 per stock levels to ?649.15 apiece shedding around 6 per cent in this period.
Vijay Kedia portfolio stock Sudarshan Chemical Industries has fallen around 6 per cent this week. Sudarshan Chemical shares came down from ?689.65 per stock levels to ?649.15 today (at 1:07 PM on NSE) in last 5 trade sessions shedding around 6 per cent in this period. The chemical company has informed Indian exchanges that one of its marquee investors Anuj Narayandas Rathi is booking profit and experts see this as major reason for slide in Sudarshan Chemical share price.
According to stock market experts, company's financial and business outlook is quite strong and market is expecting strong Q2 FY2021-22 numbers in comparison to Q1 FY2021-22 numbers of the company. They went on to add that current profit-booking should be seen as 'buying opportunity' by retail investors as the stock may bounce back after this profit-booking.
Speaking on the reason for dip in this Vijay Kedia portfolio stock; Avinash Gorakshkar, Head of Research at Profitmart securities said, "Pune-based Rathi family has huge investments in this company. The company has recently informed Indian exchanges that one of the Rathi family members, who have investments in this company, is booking profit. So, this profit-booking could be the reason for dip in Sudarshan Chemical share price. However, this dip won't last long as the stock is giving big opportunity to retail investors to take advantage of this dip and buy the counter at discounted price."
Highlighting the business outlook of the company, Avinash Gorakshkar of Profitmart Securities said, "Company is mainly in agro chemical, pigment and dyes business. After curbs on Chinese imports, it is expected to get benefit in its pigment dyes business. Apart from this, its agro chemical business is expected to get better moolah after the normal monsoon forecast by the IMD (India Meteorological Department). So, Sudarshan Chemical business outlook for pigment, dyes and agro chemical segment looks promising. One can expect strong quarterly numbers from the company in upcoming result season."
Advising investors to buy Sudarshan Chemical stocks; Ravi Singhal, Vice Chairman at GCL Securities said, "This Vijay Kedia portfolio share may further go down up to ?625 apiece. So, my advice is to buy this counter at around ?625 levels for 3 to 6 months target of ?725 to ?775 per equity share levels. However, one must maintain stop loss at ?588 apiece while taking this position in the chemical counter."
Sudarshan Chemical management recently informed Indian exchanges about the profit booking by Rathi family member citing, "This is to inform that the Company has received a disclosure in Form C under Regulation 7(2) of the SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended from time to time, dated 16th September, 2021, with respect to the sale of Equity Shares by Anuj Narayandas Rathi HUF, a member of the Promoter Group of the Company."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.