Home brokerage and analysis agency ICICI Securities has Maintain scores on Navin Fluorine, Galaxy Surfactants, and Rossari Biotech shares whereas it has Purchase tags on specialty chemical shares Sudarshan Chemical, EPL, Chemplast Sanmar, Gujarat Fluorochemicals, Tatva Chintan Pharma Chem and PCBL.
“Pigment costs have elevated marginally on QoQ foundation, which exhibits continued strain on margins for Sudarshan. EPL will proceed to face challenges as a consequence of elevated polymer costs, which had been up 2.1% quarter-on-quarter (QoQ),” the notice said.
In the meantime, ICICI Securities has given add score to SRF shares whereas it has scale back stance on specialty chemical inventory Clear Science and Expertise.
Sharing its notice on month-to-month worth developments for specialty chemical compounds, the brokerage home mentioned that R-22 costs rose to Rs257/kg in Q1FY23, however volumes had been down 58% YoY in April 2022. Nonetheless, R-22 spreads have dipped to ₹120 (from Rs128 in Q4FY22) as a consequence of greater fluorspar and chloroform costs.
In packaging movie section, spreads have dipped for each BOPET and BOPP. This was anticipated as a consequence of new capability growth. Additional, PTFE costs are regular whereas volumes declined 13.1% YoY in April 2022. Carbon black export costs elevated 19% QoQ to Rs115, which is predicted to enhance spreads, and volumes had been up 58% YoY in April.
“Whereas inflation in LAB is comparatively decrease, Galaxy might even see some volumes in tier-3 clients shift from LA to LAB. Rossari Biotech’s 4 key uncooked supplies’ inflation stays elevated which has saved the corporate’s margins underneath strain. Nonetheless, in April 22, acetic acid costs dipped sharply, however different three merchandise’ costs proceed to rise,” ICICI Securities’ notice added.
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Supply: Live Mint