SUDARSCHEMSudarshan Chemical Industries Limited Forensic Risk Analysis

Dyes And Pigments
Risk ClassWatch
Market Cap₹6,721 Cr
Primary DriverEarnings Quality
Flagium AI Risk Score
Early signs of stress detected. Not yet widespread, but initial deterioration is visible.
30 / 100
-5 QoQ
Improving
Sentinel Insight

Financial profile remains stable for now. Pressure is receding in profitability and earnings quality. This suggests the risk profile is currently stabilizing. Risk levels are improving.

50.0th %ile (Sector)Accel: +0 Qtrs
Updated2026-06-02
Market View
₹897.25▼1.03%
PeriodQ4 FY26

Score Waterfall
Absolute contribution points of each forensic pillar to the final risk score. Derived from: Sector Baseline + Active Penalties - Mitigation Buffers.

Earnings Quality
+7.9 pts
Stability Adjustment
+22.0 pts
Final Composite Risk30 / 100

Investment Risk Thesis

Historical Trend

Current risk score has risen from 0 → 30 over 12 quarters.

Expected Direction
🟢 Improving
Primary Deterioration Drivers
  • Inventory Stress
  • Margin Compression
  • Industrial Margin Stress
What to Watch Next Quarter
  • Working capital efficiency
  • Inventory turnover
  • Operating profit margins

Active Risk Objects (8)

CriticalHigh
Working Capital Expansion
💧 Liquidity & CoverageAnnualActive for 2 Years
More Detail
Impact Weight10/15
MomentumDecaying
Last SignalQ4 FY2025
Working capital expansion detected: Receivable days increased by 17.2%.

"Working capital pressure is receding. Cash previously locked in operations is being released."

Inventory Stress
📊 Earnings QualityAnnualActive for 1 Years
More Detail
Impact Weight15/15
MomentumDecaying
Last SignalQ4 FY2025
Inventory growth (463.3%) significantly outpaced revenue growth (78.6%).

"Inventory overhang is clearing. Stock levels are normalizing as sales momentum returns."

Margin Compression
📊 Earnings QualityAnnualActive for 3 Years
More Detail
Impact Weight15/15
MomentumPersistent
Last SignalQ3 FY2026
Operating margin declined by 9.3 bps YoY for two consecutive quarters.

"Margins are in freefall. Operating costs are growing significantly faster than revenue."

Operating Leverage Stress
📊 Earnings QualityAnnualActive for 4 Years
More Detail
Impact Weight10/15
MomentumPersistent
Last SignalQ3 FY2026
Expenses are consistently growing faster than revenues, creating operational pressure.

"The balance sheet is heavily over-leveraged. Interest payments are consuming most of the profit."

Profit Collapse
📊 Earnings QualityQuarterlyActive for 4 Qtrs
More Detail
Impact Weight8/15
MomentumDecaying
Last SignalQ3 FY2026
SUDARSCHEM: Net Profit collapsed by 22668.1% from FY2025 Q3 to FY2026 Q3.

"Earnings quality is stabilizing. The reliance on non-operational items is receding."

Low Interest Coverage
💧 Liquidity & CoverageQuarterlyActive for 4 Qtrs
More Detail
Impact Weight8/15
MomentumDecaying
Last SignalQ3 FY2026
SUDARSCHEM: Low Interest Coverage Ratio of -2.58x in FY2026 Q3 (Threshold: 2.5x).

"The ability to cover interest is strengthening as earnings improve or debt is retired."

Cash Conversion Deficit
📊 Earnings QualityAnnualActive for 2 Years
More Detail
Impact Weight6/15
MomentumAccelerating
Last SignalFY2026
SUDARSCHEM: OCF below Net Profit in 2/3 recent years.

"Cash conversion is dangerously low. Operational cash flow is significantly trailing reported PAT."

Industrial Margin Stress
📉 Trend DeteriorationAnnualActive for 5 Years
More Detail
Impact Weight12/15
MomentumPersistent
Last SignalQ4 FY2026
SUDARSCHEM: EBITDA margin compressed by 2.2 bps YoY.

"Early signs of margin erosion. Input costs are beginning to eat into core profits."

Risk Trajectory
Historical 12-quarter risk trend (Q-11 to Q0) followed by a 2-quarter predictive funnel (Q+1, Q+2).
Loading Chart
Resilience Matrix
Diagnostic benchmarking comparing structural sensitivity and risk buffers against sector medians.
MetricValuevs SectorSignal
Volatility (σ)5.457.19✅ RESILIENT
Sensitivity (ε_s)11.00✅ RESILIENT
Escalation Prob.5%5%✅ NEUTRAL
Safety Buffer+36.0+36.0✅ RESILIENT
Forensic Benchmark Context: Dyes And Pigments (n=7 peers)

Correlation Analysis
Visualizing the relationship between stock price movement and structural risk objects.

Loading Chart
Share Price
Risk Score (0-100)
Market Performance
₹897.25(-1.03%)
1M Divergence-4.14%
1 Week-10.56%
1 Month-1.87%
6 Months-10.65%
1 Year-22.15%
2 Year+14.68%
3 Year+95.48%
Sector Average (1M)+2.27%
Sentinel Forensic Assessment
ALGORITHMIC RISK PROFILE • NON-ADVISORY

The risk profile is Early Signals and currently improving. Recent structural triggers in earnings quality suggest a building pressure on the underlying framework. Material forensic traces are visible in operational margins and profitability metrics, indicating a progressive erosion of structural stability. Initial structural recovery is visible; monitor for a sustained return to resilience.

SUDARSCHEM • MARKET STRUCTURE

Stage 4 — Declining

The company is in a defensive phase. Sentiment and fundamentals are deteriorating under persistent downward pressure, indicating elevated risk levels.

Stage Transition Prob.0%
Trend QualityDeteriorating
Phase Progression
Phase Progression Score0%
Readiness LabelLow (Early Base Consolidation)
Probability of Advancing0%
CoinTree Momentum
Composite Z-Score-0.3454σ
Weakening momentum trend
Universe Rank
A cross-sectional rank of this stock's composite momentum score compared to all other tracked equities in the universe. A rank of #1 of 1035 means it has the strongest overall price momentum in the market.
#1758 of 2716
Top 64.73% in momentum strength
Timeframe Sparklines
1W-10.6%
1M-1.9%
6M-10.7%
Weinstein Indicators
150 DMA₹935.22
200 DMA₹1,050.67
150 DMA Slope-5.6025%Declining
Relative Strength-6.14%Lagging
Relative Turnover (RTR)1.9186
ParticipationHealthy

PEER COMPARISON

Ranked comparison against sector peers

Risk profile is broadly in line with the Sector Mean (30).
ASAHISONGAsahi Songwon Colors Limited
8 Risk
Sector %ile17th
Delta+2
Active Flags14
Accel+1
Competitive Position

Stable

SUDARSCHEMSudarshan Chemical Industries Limited
30 Risk
Sector %ile50th
Delta-5
Active Flags8
Accel+0
Earnings Quality

Watch

AKSHARCHEMAksharChem India Limited
30 Risk
Sector %ile50th
Delta-5
Active Flags22
Accel+0
Earnings Quality

Watch

* Peer comparison is based on risk signals, not valuation or returns.

Risk Profiles

Solvency
10100th %ile
VS Sector Median (8.5)
Governance
10100th %ile
VS Sector Median (8.5)
Earnings Quality
4.747.2th %ile
VS Sector Median (8.5)
Balance Sheet Stress
10100th %ile
VS Sector Median (8.5)
Competitive Position
10100th %ile
VS Sector Median (8.5)
Growth Sustainability
10100th %ile
VS Sector Median (8.5)

Deterioration Timeline

2026

Industrial Margin Stress

2026

Margin Compression

2026

Operating Leverage Stress

2026

Industrial Margin Stress

2026

Operating Leverage Stress

2026

Margin Compression

2026

Industrial Margin Stress

2026

Operating Leverage Stress

2026

Margin Compression

2026

Industrial Margin Stress

2026

Cash Conversion Deficit

2025

Industrial Margin Stress

2025

Operating Leverage Stress

2025

Inventory Stress

2025

Working Capital Expansion

2025

Working Capital Expansion

2025

Cash Conversion Deficit

Key Financials (INR Cr)

PeriodRevenueNet ProfitOCFDebt
FY20269,866413442,119
FY20253,37960372,085
FY20242,556357193441
FY20232,30745287817