Business Overview
Sunshield Chemicals limited is in Chemical sector. Chemical sector is sub divided into specialty chemicals sub sector. The Company belongs to Specialty chemicals sector.
It is part of Solvay. Solvay is Belgian chemical company which is present in more than 53 countries. It is older than 150 years. It is related to Solvay’s Novecare business.
The products manufactured by the Company are used in Industries like Wire Insulation Enamel, PVC stabilizers, Inks, Colours, Coatings, Textiles, Agro-chemicals, Plastics, Rubber and Latex, Tyre and Tubes, Lubricant and additives.
It has manufacturing factory in Rasal Maharastra.
Stock Performance
Above is long term price performance chart of the Stock. The stock had quite a turbulent price action. If you see period before and after 2006, or between 2009 and 2012 or after that the big bull run starting from 2014 to great fall in late half of 2018.
This quick price appreciation and nosedive make it bit risky stock to make a position in. You should be really careful investing in it. It is better to invest at lower level. Note at current level (even if price is low compared to previous highs) it is trading at very very expensive valuations
My Opinion
Specialty Chemicals sector was very much in focus during 2014 bull run as most of them gave stellar returns. It is one of those stocks. The MNC patronage does give some comfort to investors. But the parent is not focusing too much into India as of now.
The fluctuating price performance is testament of this fact. Company does have excellent basket of products for diversified industries but it has not gained major market presence in India.
Globally also most of the Solvay revenue comes from top three regions where it has monopoly position. So Company does have potential to create monopoly in product it caters but the management is too reluctant to aggressive growth.
Due to all these reasons I am not adding this stock in my watch list. There are better Indian and MNC stocks available in Chemicals sector which will give compounded returns in years to come.