Vijay Kedia’s Portfolio Multibagger Stock Hit 52-Week High As Company Enters Into Definitive Agreement To Acquire Heubach Group
The stock gave multibagger returns of 160 per cent in just 1 year and a whopping 1,220 per cent in a decade.
On Monday, along with the market in green, multibagger Small-Cap stock gained 2.28 per cent and made a new 52-week high of Rs 1,235 per share from its previous closing of Rs 1,207.50 per share.
The buzzing stock name is SUDARSHAN CHEMICAL INDUSTRIES LTD.
The sudden rise in the stock price was due to the company having entered into a definitive agreement with the Germany-based Heubach Group, on its acquisition in a combination of an asset and share deal. This strategic acquisition will create a global pigment company, combining SCIL’s operations and expertise with Heubach's technological capabilities.
Post-acquisition, the combined company will have a broad pigment portfolio of high-quality products and a strong presence in major markets including Europe and the Americas. It will enhance SCIL’s product portfolio, giving it access to customers and a diversified asset footprint across 19 sites globally. The combined company will be led by Mr Rajesh Rathi and a high-performing management team with quality execution skills and technical competency.
The Heubach Group has a 200-year history and became the second-largest pigment player in the world after its integration with Clariant in 2022. Heubach had over a billion euros in revenue in FY21 and FY22, with a global footprint, especially in Europe, the Americas and the APAC region. The Group faced financial challenges over the past two years due to rising costs, inventory issues, and high interest rates. SCIL’s acquisition of Heubach will address these challenges with a clear turnaround plan.
Crawford Bayley and Noerr are acting as legal counsel to Sudarshan, while DC Advisory is serving as the financial advisor. This strategic partnership reflects the complexity of the acquisition and the need for expert guidance in legal and financial matters.
The proposed integration between Sudarshan and Heubach is driven by a shared commitment to agility and customer focus. The strategic and financial benefits of this combination are significant. By joining forces, the combined entity will become a leading global pigment player with a diverse product portfolio, a strong customer base, and a global manufacturing footprint. This will enable the company to offer superior value to customers, enhance its financial performance, and create a more agile and efficient organization.
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About the Company
Sudarshan Chemical Industries Limited, incorporated in 1952, is a leading colour solutions provider with a strong global outreach of 85+ countries in the production of performance colourants, an extensive range of organic, inorganic and pearlescent pigments and dispersions. SCIL’s product offerings also include classical azo pigments, high-performance pigments, effect pigments and pigment dispersions. SCIL has manufacturing facilities in Roha and Mahad in India. SCIL operates under 16 brands and has a 35 per cent domestic market share in its product category.
As of the June 2024 quarter, two ace investors, Vijay Kedia owns 10,00,000 shares or 1.44 per cent stake and Akash Bhanshali owns 56,05,577 shares or 8.10 per cent stake. The company has a market cap of Rs 8,359 and has been maintaining a healthy dividend payout of 19.6 per cent. The stock gave multibagger returns of 160 per cent in just 1 year and a whopping 1,220 per cent in a decade. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.