Sunshield Chemicals Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Sunshield Chemicals Ltd trades at ₹1,277, in a confirmed uptrend and 12 weeks into that stage. That is +27.1% against its own 200-day average. It sits at 100% of a 52-week range of ₹740 to ₹1,277. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 8 straight weeks.

Today the stock is in a confirmed uptrend — week 12 of stage 2, confirmed. At ₹1,277 it trades +27.1% versus its 200-day average and sits at 100% of its 52-week range (₹740–₹1,277).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +302% while the NIFTY 500 moved +277% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 8 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Sunshield Chemicals Ltd's story is not scored yet against the markers our research file set on 19 July 2026. Where it sits in its own cycle: Not stated in the research file. Our fortnightly research layers last read it on 22 August 2026.

Our read, 19 July 2026. Sunshield Chemicals is mid-cycle in an earnings recovery, with revenue nearly doubling over four years on new capacity and OCF of 3.2x net profit confirming cash-backed growth — trading at the 31st percentile of a decade of PE history.

From the numbers. The PE multiple sits at the 31st percentile of a 10-year history with a median of 42x. The cycle-normalized verdict is fairly priced: normalized PE is 30x vs trailing 29x, a near-zero gap, with margins at the 35th…

From the price. Price stage 2, week 12 — above its 200-day line, relative strength rising.

From the research. Sunshield Chemicals is mid-cycle in an earnings recovery, with revenue nearly doubling over four years on new capacity and OCF of 3.2x net profit confirming cash-backed growth — trading at the 31st percentile of a…

🚨 Where they disagree. The PE multiple sits at the 31st percentile of a 10-year history with a median of 42x. The cycle-normalized verdict is fairly priced: normalized PE is 30x vs trailing 29x, a near-zero gap, with margins at the 35th percentile of own 10-year OPM history. The multiple contracted from a 10-year peak of 57x to 29x over 9 quarters as EPS grew 30% over 8 quarters — the two series are diverging in the direction that favors a long position, but the depth of cheapness is moderate.

What is proven. Sunshield Chemicals is mid-cycle in an earnings recovery, with revenue nearly doubling over four years on new capacity and OCF of 3.2x net profit confirming cash-backed growth — trading at the 31st percentile of a decade of PE history.

What is not proven yet. OPM falls back below 8% for two consecutive quarters while revenue stays above 100 Cr per quarter — ruling out the operating leverage thesis and implying a structural cost impairment not visible from the GPM stability — or borrowings reaccelerate above 120 Cr while quarterly OCF drops below 10 Cr, indicating the capex cycle is reigniting without revenue conversion.

🚨 What would change our mind. OPM falls back below 8% for two consecutive quarters while revenue stays above 100 Cr per quarter — ruling out the operating leverage thesis and implying a structural cost impairment not visible from the GPM stability — or borrowings reaccelerate above 120 Cr while quarterly OCF drops below 10 Cr, indicating the capex cycle is reigniting without revenue conversion.

Layer 1 read, 22 August 2026 — KEEP. A real margin recovery the report never saw — operating margin doubled from 8% to 16% while the shares got cheaper. Sunshield's profits bottomed out in December 2024 at Rs 1.85 a share on an 8% operating margin, and by June 2026 they were Rs 15.34 a share on a 16% margin, with sales up from Rs 85 Cr to Rs 127 Cr a quarter. The cause is straightforward and checkable: the gross margin barely moved across all sixteen measured quarters (a 24-35% band) while the operating margin swung wildly — that combination means the swing sits in fixed costs, which is what happens when a newly built plant (assets up from Rs 66 Cr to Rs 128 Cr, with Rs 37 Cr more still being built) starts filling up. Meanwhile the share price got RELATIVELY cheaper: the earnings multiple fell 31% over eight quarters while earnings rose…

What would change Layer 1’s mind. Sharpening the timeline's own line: operating margin falling back below 10% for two consecutive quarters while quarterly revenue stays above Rs 110 Cr would kill the operating-leverage explanation outright — it would mean the fixed-cost absorption story is wrong and the Mar-Jun 2026 margin jump was pricing or a one-off product mix. The secondary trigger is borrowings climbing back above Rs 120 Cr with quarterly interest expense reappearing, which would say a fresh capital-spending round has…

Layer 2 read, 22 August 2026 — ADVANCE. A broad chemical recovery supports Sunshield, but missing management evidence keeps it small. Sunshield's own record ties the margin swing to fixed-cost absorption after plant investment. Outside the company, the sector's latest sales recovery was broad rather than carried by one name, while the feedstock warning remains sector-wide and is not yet mapped to Sunshield.

What would change Layer 2’s mind. Two consecutive Sunshield quarters with gross margin below 22% would show that the sector feedstock shock has reached the company and would flip this ADVANCE to DROP.

Layer 3 read, 22 August 2026 — DEPLOY. The cash dip is explainable, but silence from management keeps this recovery at starter size. The prior cash-backed history is now challenged by a fresh cash decline, but the detailed trace shows receivables and inventory improved while faster supplier payments absorbed cash. The commodity sweep adds a managed crude-linked margin risk, while Timeline R1 still warns that zero earnings calls leave management's explanation untested.

What would change Layer 3’s mind. If FY27 operating cash again stays below profit after payable days have normalized and borrowings return, this DEPLOY flips to BENCH because the recovery would no longer be self-funded.

CIO read, 22 August 2026 — BENCH. NOT ADMITTED (incoming, benched) · forward-asymmetry 40/100 · CLEAR_NO_CONTEST. NO CONTEST — I judge deliverable EPS growth at 6% from the FY27-FY28 model EPS path, leaving a negative 12.7-point gap against the model's 18.7% requirement. The plant ramp is lifting margins, but the price has already risen 55.9% in four months and the company has no earnings calls.

What the company does. Revenue grew from 199 Cr in FY21 to 366 Cr in FY25 as the company commissioned 128 Cr of cumulative capex funded entirely from operating cash flows. OPM troughed at 8% in Dec 2024 as the new asset base was being absorbed, and has since recovered to 11.5% in Sep 2025 — a trajectory consistent with fixed-cost operating leverage on rising utilization. The PE of 29x sits at the 31st percentile of a 10-year history with a median of 42x; the cycle-normalized read is fairly priced with margins at the 35th percentile of own history.

🚨 What the surface reading misses. The surface reading is: TTM PAT growth of 66.5% looks like strong acceleration. The research reads it further: All 13 one_off_ledger quarters are clean — zero exceptional items in any period. Operating profit also grew: TTM operating profit rose from 28.19 Cr (Dec 2024 TTM) to 47.24 Cr (Dec 2025 TTM), a 68% move mirroring PAT. The growth is from revenue volume and operating leverage, not a tax or exceptional distortion.

🚨 What the surface reading misses. The surface reading is: 31st percentile PE — stock trading well below its historical average multiple. The research reads it further: The cycle_normalized verdict is FAIRLY_PRICED, not CHEAP_CYCLE. Normalized PE is 30x vs trailing 29x — a negligible gap — because OPM is at the 35th percentile of own history (mid-cycle, not trough). The multiple compressed 49% from the 57x peak 9 quarters ago, but this compression was driven by EPS rising while the price moved less, not by a deep trough distortion.

Sources: our stock research file (19 July 2026) · quarterly results through Jun 26. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Sunshield Chemicals Ltd reported ₹127 Cr of revenue in the Jun 26 quarter, +11.4% year on year. Over 10 years it has compounded at 11.4% a year. The last full year, FY26, came in at ₹441 Cr. The last four reported quarters add to ₹454 Cr.

FY26 revenue came in at ₹441 Cr (+20.5% on the year), capping 10 years at 11.4% compound. The latest quarter (Jun 26) printed ₹127 Cr, +11.4% year on year.

Pace check: the last four quarters averaged +13.6% growth against the decade's 11.4% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +12.9% over the last 4 quarters against +24.1%/yr over the last 8 — rolling over; TTM profit +100.0% vs +37.6%/yr — accelerating.

FY26-Q4. revenue ₹110 Cr and profit ₹11 Cr as reported.

FY27-Q1. revenue ₹127 Cr and profit ₹13 Cr as reported.

Why-sources: our stock research file (19 July 2026) and the company’s own results for those quarters.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Sunshield Chemicals Ltd's operating margin is 16.0% in the Jun 26 quarter, +5.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 1.8% to 15.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 16.0%, +5.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 1.8%–15.0%.

Why the margin moved: operating margin went +5.0 pp year on year while gross margin went +4.2 pp — the gain came mostly from the gross line: input costs and pricing.

FY26-Q4. revenue ₹110 Cr and profit ₹11 Cr as reported.

FY27-Q1. revenue ₹127 Cr and profit ₹13 Cr as reported.

Why-sources: our stock research file (19 July 2026) and the company’s own results for those quarters.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Sunshield Chemicals Ltd earned ₹13.0 Cr of net profit in the Jun 26 quarter, +85.7% year on year. It is the 5th consecutive quarter of growth. Full-year FY26 profit was ₹30.0 Cr. That is 10.2% of the quarter's revenue. The same quarter a year earlier earned ₹7.0 Cr.

Jun 26 profit was ₹13.0 Cr, +85.7% year on year — the 5th consecutive quarter of growth. On the full year, FY26 printed ₹30.0 Cr (+100.0%).

Why profit moved: revenue contributed +11.4% and the margin +5.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +113.1% vs revenue +13.6%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

FY26-Q4. revenue ₹110 Cr and profit ₹11 Cr as reported.

FY27-Q1. revenue ₹127 Cr and profit ₹13 Cr as reported.

Why-sources: our stock research file (19 July 2026) and the company’s own results for those quarters.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 156% of Sunshield Chemicals Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹10.0 Cr of operating cash against ₹30.0 Cr of profit. After ₹10.0 Cr of capital spending, ₹0.0 Cr was left as free cash.

FY26: operating cash of ₹10.0 Cr against reported profit of ₹30.0 Cr, leaving free cash of ₹0.0 Cr after ₹10.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 156% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 156%: the cash cycle held roughly steady between FY21 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: the bigger cash user is investment — capital spending ran 4.0× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Sunshield Chemicals Ltd's cash conversion cycle runs 76 days in FY26, up from 69 days in FY21. Capital spending ran ₹111 Cr over the last 3 years. At FY26 sales of ₹441 Cr each day of that cycle holds about ₹1.2 Cr, so roughly ₹92.0 Cr sits inside the business at any moment.

Why this happened. Five years of OCF-funded capex (cumulative 128 Cr) produced fixed assets of 128 Cr and CWIP of 37 Cr by Sep 2025. Revenue followed: 199, 244, 245, 283, 366 Cr over FY21–25. Quarterly revenue has stabilized at 110–122 Cr per quarter in Mar–Sep 2025 against a prior run rate of 78–93 Cr in the FY25 trough quarters. The capex cycle appears to be moderating as borrowings peaked at 100 Cr and repaid to 88 Cr.

FY26: debtors at 59 days, inventory at 59 days — roughly 1.9 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 76 days, looser than FY21's 69.

The full loop: cash goes out to suppliers and production on day 0; stock waits 59 days to sell; customers pay about 59 days after that; and suppliers themselves are paid at 42 days — netting out to the 76-day cycle.

In money terms: at FY26 sales of ₹441 Cr, each day of the cycle holds about ₹1.2 Cr — so the 76-day loop keeps roughly ₹92.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹111 Cr over the last 3 fiscal years against ₹28.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹6.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Sunshield Chemicals Ltd earns a ROCE of 20% in FY26. That is up from a trough of −1% in FY15. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 6.8% net margin on 1.45× asset turns.

FY26 ROCE is 20%, recovered from a FY15 trough of −1% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 6.8% net margin × 1.45× asset turns × 1.21× balance-sheet leverage ≈ 11.9% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Sunshield Chemicals Ltd carries ₹0.0 Cr of borrowings against ₹252 Cr of equity in FY26, a debt-to-equity of 0.00. Operating profit covers the interest bill 10×. Over 5 years borrowings went from ₹88.0 Cr to ₹0.0 Cr. Capital spending ran ₹111 Cr across the last 3 of those years.

FY26: borrowings of ₹0.0 Cr against equity of ₹252 Cr — a debt-to-equity of 0.00. Operating profit covers the interest bill 10×. Over 5 years borrowings went from ₹88.0 Cr to ₹0.0 Cr while capital spending ran ₹111 Cr in just the last 3 — the build-out is being paid for out of cash, not debt.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters added 4.2 points of Sunshield Chemicals Ltd over 8 quarters, the biggest move on the register. That takes promoters to 66.5% of the company. Foreign institutions moved +4.1 points over the same window, to 9.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

Why this happened. FII ownership rose from 1.67% in Mar 2023 to 8.01% in Sep 2025 in five observable steps — no reversal quarter. Simultaneously, promoter holding rose from 62.36% to 64.45%, funded from the reduction in public float (35.95% to 27.52%). Both classes accumulated at trough margins, aligning with the thesis.

The register over the last two years — Promoters: +4.2 points over 8 quarters to 66.5%; Foreign institutions: +4.1 points over 8 quarters to 9.1%; Domestic institutions: +0.0 points over 8 quarters to 0.0%.

Why the register moved: promoters drove it (+4.2 points), alongside foreign institutions (+4.1 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Sunshield Chemicals Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Sunshield Chemicals Ltd trades at 30.6× P/E, near the bottom of its own range — cheaper only 32% of the time. Its long-run median P/E is 39.0×, measured across 8.2 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 30.6× is near the bottom of its own range — cheaper only 32% of the time, against a long-run median of 39.0× measured over 8.2 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +103.1% against a +49.3% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +30.8%/yr price move, ~+16.6%/yr came from earnings growth and ~+14.2 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 27 August 2026 price, Sunshield Chemicals Ltd was paying for profit growth of about 18.7% a year. Today the market pays 30.6× P/E, the 32nd percentile of its own 8-year range.

What the two numbers say together. The multiple is low against its own past, and the growth the price is paying for is the whole of what a buyer is backing.

How to hold this number: it is a reading of one day's price, taken on 27 August 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Turning around Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Sunshield Chemicals Ltd reads as turning around on its fundamental arc. Turning around — profit growth swung from −8.3% at the trough to +100.0% off a 5-quarter-old trough, ROCE holding at 20.0%. The read is built from 8 quarters across 4 curves, on partial evidence.

Why it matters: growth inflections are where re-ratings start — the curves say a turn is forming, so the question becomes whether the next quarters confirm it.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

No sector-relative score — Sunshield Chemicals Ltd is not present in the sector comparison for Speciality Chemicals.

The score is a rank WITHIN a peer set: every metric is scored by percentile against the other members. Without the peer set there is no score to state, so none is invented here.

Frequently asked questions