Sudarshan Chemical shares rose 20%, hit record high today; here's why

Shares of Sudarshan Chemical Industries Ltd (SCIL) hit the 20 percent upper circuit on Friday after the company said it acquired Germany-based Heubach's global pigment business for Rs 1,180 crore. Sudarshan Chemical Industries stock ended 19.11% higher at Rs 1207.50 against the previous close of Rs 1013.80 on BSE. Market cap of the firm stood at Rs 8,359 crore. 

Earlier, Sudarshan Chemical stock hit the upper circuit of 20% at Rs 1216.55, also its record high on BSE. A total of 1.32 lakh shares of the firm changed hands amounting to a turnover of Rs 15.49 crore. Shares of Sudarshan Chemical fell to a 52-week low of Rs 440 on October 26, 2023. 

The multibagger stock has gained 117% in 2024 and risen 152% in a year. In five years, the stock is up 221.44% and gained 1260% in ten years. 

In terms of technicals, the relative strength index (RSI) of Sudarshan Chemical stock stands at 47.3, signaling the stock is trading neither in the overbought nor in the oversold zone. Sudarshan Chemical shares are trading higher than the 5 day,10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.

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, said the firm.

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 is a key player within the Speciality Chemicals Industry which consists of organic pigments, inorganic pigments, dyes, dispersions and anti-corrosion pigments. It became the second largest pigment player in the world after

Shares of Heubach Colorants India too rose to their record high of Rs 733.25 apiece on BSE, gaining nearly 10 percent. However, the stock saw profit booking later and ended 0.17% higher at rs 670.15 on BSE. 

Sudarshan Chemical Industries is engaged in the manufacture and sale of a wide range of Organic, Inorganic Pigments and Effect Pigments.