Home brokerage and analysis agency ICICI Securities estimates ots chemical protection universe revenues to develop 34% YoY (9% QoQ) in Q4FY22 on sharp rise in costs attributable to enter price inflation, it mentioned in its fourth quarter preview observe on specialty chemical compounds.
The brokerage agency has Purchase scores on specialty chemical shares Gujarat Fluorochem (goal value: ₹3,356), Chemplast Sanmar (TP: ₹910), EPL (TP: ₹260), Sudarshan Chemical (TP: ₹683), Tatva Chintan Pharma Chem (TP: ₹3,000), Phillips Carbon Black (PCBL) with goal value of ₹147.
Whereas, it has cut back suggestions on SRF (goal value: ₹2,141) and Clear Science shares with goal value of ₹2,110. Galaxy Surfactants (TP: ₹2,710) and Rossari Biotech (TP: ₹1,047)get Maintain tag whereas it has a Promote stance on Navin Fluorine (TP: ₹3,550).
“We anticipate Rossari (+64% YoY) to replicate profit from acquisitions. Tatva Chintan’s efficiency harm from slowdown in auto (decrease SDA gross sales) whereas Clear Science has gained from value hikes throughout merchandise,” the observe acknowledged.
Galaxy Surfactants volumes could stay muted, however EBITDA normalise to Rs16/kg. Chemplast’s volumes shall be wholesome, however PVC unfold contraction and high-cost stock brought on ache. PCBL’s gross revenue/kg is anticipated to enhance on the again of higher India gross sales, however larger working price could affect EBITDA, as per ICICI Securities.
EPL and Sudarshan are more likely to face price headwinds. Gujarat Fluorochemicals is the brokerage’s high inventory choose within the sector.
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Supply: Live Mint