Sudarshan Colorants India Ltd: Is It a Deep Value Opportunity?

Sudarshan Colorants India Ltd has a deep value score of 41/100 (rated Average). This score is calculated from three components

• Earnings Score: 33/40 — measures PAT growth momentum across quarters
• Underperformance Score: 23/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
• Quality Score: 12/25 — operational quality (margins, revenue growth, valuation)

Sudarshan Colorants India Ltd's quarterly profit (PAT) growth trajectory

• Latest Quarter PAT Growth (QoQ): +500%
• Previous Quarter PAT Growth (QoQ): -112%
• 2 Quarters Ago PAT Growth (QoQ): -5%
• PAT Acceleration: +252.3pp (profits are accelerating)
• 1 consecutive quarters of positive PAT growth

Sudarshan Colorants India Ltd is underperforming the market despite improving earnings — this is the core deep value thesis

• 1-Year Return vs Nifty 500: -40%
• 6-Month Return vs Nifty 500: -23%
• 3-Month Return vs Nifty 500: -1%
• Yet average quarterly PAT growth is +128% — earnings are improving
• The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.

Sudarshan Colorants India Ltd's earnings momentum is Accelerating — profit growth is speeding up.

• PAT QoQ progression: -5% → -112% → +500% (2Q ago → 1Q ago → latest)
• Acceleration: +252.3pp
• PAT YoY Growth: +18%

Sudarshan Colorants India Ltd's valuation metrics

• Price-to-Earnings (PE): 17.9x
• Price-to-Book (PB): 1.4x
• PEG Ratio: 0.0x

Sudarshan Colorants India Ltd's revenue and margin trends

• Latest Quarter Revenue Growth (QoQ): +20%
• Average Quarterly Revenue Growth: +1%
• Revenue Acceleration: +16.6pp
• Latest OPM Change: -4.3pp (margins contracting)
• Average OPM Change: -3.2pp
• Revenue YoY: -4%

Sudarshan Colorants India Ltd's trailing twelve month (TTM) performance

• TTM PAT: ₹44 Cr
• TTM PAT Growth: -13.7% YoY
• TTM Revenue: ₹781 Cr
• TTM Revenue Growth: -5.2% YoY
• TTM Operating Margin: 7.5%

Sudarshan Colorants India Ltd key facts

• Sector: Dyes & Pigments
• Market Cap: ₹799 Cr
• Rank in Dyes & Pigments: #1 by value score
• Overall rank among all deep value stocks: #16

Sudarshan Colorants India Ltd shows limited deep value signals currently — score is 41/100 (Average). Monitor for improvement.

• Value Score: 41/100 (Average)
• Earnings: Accelerating
• 1Y Underperformance: -40% vs Nifty 500

Other deep value stocks in Dyes & Pigments

• Kiri Industries Ltd — Score 47/100, Average, earnings accelerating

Dyes & Pigments deep value sector overview

• 2 deep value stocks in this sector
• Average value score: 44/100
• Avg PAT acceleration: +246.3pp
• Top pick: Sudarshan Colorants India Ltd

Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.

The deep value score (0-100) combines three factors:

- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)

Higher score indicates a stronger contrarian research signal.