Sudarshan Chemical - Anti-Dumping On Mica To Aid Earnings By 5-10%: ICICI Direct
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ICICI Direct Report
The Finance Ministry has imposed antidumping duty on natural mica-based pearl industrial pigments, excluding cosmetic grade products. The duty will be ~$2-3/kilogram and will be levied for five years.
As per the initial document filed by Sudarshan Chemical Industries Ltd., overall import volumes for mica pigment from key geographies is at ~2181 million tonnes at an imported price of Rs 380/kg.
The price undercutting is estimated to be ~20-30% as on inquiry date.
Mica pigment currently contributes in low single digits to overall revenue of Sudarshan Chemical.
Based on our calculation, sales volumes should be ~1300 million tonnes against total capacity of ~3000 million tonnes as per the pre-feasibility study report filed earlier.
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