In his interview to ET in November 2014 Vijay Kedia explained that he had bought Sudarshan Chemical on the basis that it has already completed its capex and is well placed to take advantage of growing demand as the economy improves. “Companies like Sudarshan Chemical will get the benefit of operating leverage” Kedia said. He added that he knows the management well and is confident of their integrity and execution ability.
As of 31st December 2014, Vijay Kedia held 11,29,970 shares of Sudarshan Chemical. This investment is worth Rs. 10 crore at the CMP of Rs. 89.
| Sudarshan Chemical’s Quarterly Results | |||
|---|---|---|---|
| Particulars (Rs cr) | Dec 2014 | Dec 2013 | %Chg |
| Net Sales | 245.52 | 243.07 | 1.01 |
| Other Income | 4.16 | 0.38 | 994.74 |
| Total Income | 249.68 | 243.45 | 2.56 |
| Total Expenses | 218.39 | 209.48 | 4.25 |
| Operating Profit | 31.29 | 33.98 | -7.92 |
| Net Profit | 10.82 | 8.06 | 34.24 |
| Equity Capital | 13.85 | 6.92 | – |
Today, Vijay Kedia bought a further lot of 13,34,000 shares of Sudarshan Chemical at Rs. 82 each. His total investment in the Company now stands at 24,63,970 shares worth Rs. 22 crore.
Vijay Kedia’s strategy makes a lot of sense. Sudarshan Chemical is a well established company with a long-track record of growth and profitability. It is presently quoting at a P/E of 14 which is quite reasonable given the levels at which other stocks are quoting.
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very solid investor. even in case of lykis he has made an open offer to acquire shares at Rs.40. However the market price has run upto Rs. 60.
Can anyone tell whether to buy Lykis at this price or wait for open offer to get over?