ICICI Securities, a national brokerage firm, took over the specialty chemicals sector with various ratings amid a tumultuous stock market and strong global signals. Sudarshan Chemical, EPL, Chemplast Sanmar, Gujarat Fluorochemicals, Tatva Chintan and Phillips Carbon Black (PCBL) all received buy ratings from the brokerage. The brokerage has a hold rating on Rossari Biotech and Galaxy Surfactants, but a cut rating on SRF, Clean Science and a sell rating on Navin Fluorine.
The brokerage said that “R-22 prices rose to Rs244/kg (down 5.0% quarter on quarter / up 37.5%) in Q4FY22-TD, but volumes were down. down 81% year-on-year to just 325 te This could be partly due to the closure of the factory in Gujarat Fluorine Chemicals, but we are not concerned as the companies are selling all of their allocated quota for the In the packaging films segment, the gap increased for both BOPET and BOPP.
ICICI Securities said “This is despite expectations of lower spreads due to further capacity expansion, while higher margins should continue to help SRF. Lauryl alcohol prices rose again on January 22 and now stand at Rs167, up 6.3% QoQ Inflation at Rossari Biotech four key commodities will keep corporate margins under pressure, while prices have cooled somewhat, but are unlikely to they are maintained in the short term.”
“Pigment prices rose (good for Sudarshan Chemical) on a quarterly basis, but fell slightly MoM, belying expectations of further inflation. EPL will continue to face challenges due to high polymer prices. PTFE prices rose 13.7% YoY to Rs 939 in line with GFL comments on the price increase PTFE volumes were up 20% YoY on January 22. “Carbon black exports were up 62% year-over-year, so PCBL will see a higher mix of exports (which have lower spreads over domestic sales),” the brokerage said.
Specialty Chemical Stocks to Watch Now
|Navin Fluor||TO SELL|
|Sudarshan Chemicals||TO BUY|
|Chemplast Sanmar||TO BUY|
|Gujarat Fluorine Chemicals||TO BUY|
|Tatva Chintan||TO BUY|
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Article first published: Saturday, March 12, 2022, 8:42 a.m. [IST]