Chemicals, Midcap Q1 Results Review - Mixed Performance; Demand Recovery Expected From H2: Axis Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.In Q1 FY25, the chemicals sector experienced mixed results, with most companies missing our and street estimates, particularly on margins due to intense competition from Chinese manufacturers. The demand-supply imbalance persisted as weaker domestic demand clashed with excess capacity in China, affecting realizations in certain segments. While the non-discretionary segment showed some signs of recovery, uncertainties remain. Additionally, performance was further impacted by factors such as concerns related to the Red Sea, leading to higher freight costs and longer transit times. On the domestic front, the agrochemical industry remained buoyant, driven by the forecast of a strong monsoon season, with growth momentum expected to pick up ahead of the kharif season..Within midcap stocks under our coverage, Welspun Living, Mold-Tek Packaging, Pitti Engineering, and Kirloskar Brothers witnessed positive demand trends and posted positive revenue growth. Similar to the chemicals players, revenues for some of these companies were impacted due to logistical/supply side challenges. Praj Industries Ltd’s revenue and order book declined during the quarter, primarily due to weaker demand in the bio-energy segment. Notably, the Government of India has recently initiated discussions around the revision of ethanol prices, which, if implemented, may improve the demand in the bio-energy segment for Praj Industries..Click on the attachment to read the full report: .Metals Q1 Results Review - Stable Performance; Spread Is The Key Monitorable: ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Chemicals, Midcap Q1 Results Review - Mixed Performance; Demand Recovery Expected From H2: Axis Securities

Within midcap stocks under the brokerage's coverage, Welspun Living, Mold-Tek Packaging, Pitti Engineering, and Kirloskar Brothers witnessed positive demand trends and posted positive revenue growth.

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Chemicals, Midcap Q1 Results Review - Mixed Performance; Demand Recovery Expected From H2: Axis Securities

Within midcap stocks under the brokerage's coverage, Welspun Living, Mold-Tek Packaging, Pitti Engineering, and Kirloskar Brothers witnessed positive demand trends and posted positive revenue growth.

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