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Vijay Kedia portfolio stock Sudarshan Chemical Industries Ltd shares have remained under selloff pressure for last 3-mponths. After making its closing high of near ₹707 at the end of August 2021, Sudarshan Chemical share price has dipped to near ₹570 levels today, logging around 20 per cent slide in the last 3 months. However, stock market experts are of the opinion that the chemical counter is near to its strong support and one can initiate buy in the counter for 6-month target of ₹700 per share levels.
Advising stock market investors to add this Vijay Kedia share in one's portfolio; Sumeet Bagadia, Executive Director at Choice Broking said, "The chemical stock has been nosediving for last 3 months and it is close to its strong support of ₹540 per share levels. It seems that profit-booking and consolidation in the stock is over and the stock is poised for upside movement in upcoming trade session. One can buy the counter at current level for 6 months target of ₹650 to ₹700 per share levels maintaining stop loss at ₹530 mark."
Highlighting the reason for crash in this Vijay Kedia portfolio stock; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Sudarshan Chemical Industries Q1 and Q2 results were not much impressive as it had to cope with Covid-19 second wave in this period. However, in these two quarter results, the company has reported abrupt jump in its employees' cost and other expenses. It employees' cost has gone up from ₹24 crore to ₹32 crore on year-on-year (YoY) basis where as its other expenses have gone up from ₹132 crore to ₹205 crore on YoY basis. So, profit-booking in the chemical stock was widely expected. Hence, Q3 results of the company would be very crucial because normally third and fourth quarter numbers of a chemical company normally comes better than its previous two quarter numbers."
Expecting sharp upside move in Sudarshan Chemical shares on a single trigger, Avinash Gorakshkar of Profitmart Securities said, "The company deals in pigments and agro chemical and its demand is expected to shot up in next six months during winter. So, we can expect rise in footfall of the company. If the company manages to control its expenses under employees and other expenses category, we can expect strong quarterly numbers from the company in next two quarters of FY22."
Avinash Gorakshkar advised Sudarshan Chemical shareholders to hold the counter for next 3-6 months. He also advised fresh investors to enter at the current levels for same time horizon.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
