Is The Chemistry For Chemical Companies Looking Attractive? DRChoksey's Analysis

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..Deven Choksey Research Report.We believe the chemistry for Indian chemical companies seem to be turning around as we anticipate improved volume growth in FY25E, this should support the top-line growth while realizations might take little more time to show similar uptick. So, the appealing chemistry of volume growth and valuation comfort makes us confident on the growth prospectus of Indian chemical companies over the near to medium term. Consequently, we pick the following companies as our top picks:.Rossari Biotech: Rossari Biotech Ltd. has achieved strong growth momentum in recent quarters, with robust performance in the HPPC and TSC segments. The ongoing expansion at Dahej is progressing well and is expected to boost the company’s capacity for specialty chemicals and ethoxylation products. .Balaji Amines: In the recent quarters, the company delivered steady volume growth, primarily driven by exceptional performance in the Amines segment. Looking ahead, the company remains optimistic about margin improvement, with guidance suggesting an upward trajectory. The ongoing capital expenditure projects are seen as crucial for enhancing the company’s product portfolio and long-term growth..Archean Chemical Industries: The industrial salt segment remained robust in FY24, helping the company partially offset the underperformance of the bromine segment. In FY25E, a decent volume recovery is expected in both elemental bromine and industrial salt, along with the company’s entry into bromine derivatives. Its low debt profile, strong interest coverage, and leadership position—driven by cost efficiency and strategic infrastructure—position the company well for future growth. .Fineotex Chemical: The company reported strong performance for FY24, achieving its highest-ever Ebitda margins, driven by lower costs and stable operational efficiency. With multiple triggers coming into play for next year-increasing cotton demand,inorganic international opportunity,expansion of cleaning and hygiene segment, we believe the company is poised for a bright future ahead. .PI Industries: PI Industries demonstrated strong financial performance in Q1 FY25 driven by robust export growth and the successful commercialization of new products. We expect exports overall and within exports relatively newer products and within domestic biologics to be strong growth drivers for the future..Click on the attachment to read the full report:.Prince Pipes - Resin Price Volatilty To Drag Q2 Performance: HDFC 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.

Is The Chemistry For Chemical Companies Looking Attractive? DRChoksey's Analysis

Indian specialty chemical companies are currently witnessing normalisation of inventory destocking, which has been a major challenge over the past few years, says the brokerage.

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Is The Chemistry For Chemical Companies Looking Attractive? DRChoksey's Analysis

Indian specialty chemical companies are currently witnessing normalisation of inventory destocking, which has been a major challenge over the past few years, says the brokerage.

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