Sharing the worth tendencies of specialty chemical compounds in January, brokerage home ICICI Securities in a be aware mentioned that R-22 costs rose to ₹244 per kg in Q4FY22-TD, however volumes have been down 81% year-on-year (YoY). This might be partially as a result of plant shutdown for Gujarat Fluorochemicals, however the brokerage shouldn’t be anxious as corporations promote their whole quota allotted for full 12 months.
In packaging movie section, unfold has elevated for each BOPET and BOPP. That is regardless of anticipation of spreads dipping as a result of new capability enlargement, whereas greater margins ought to preserve serving to SRF, the be aware highlighted.
ICICI Securities has Purchase scores on specialty chemical shares Sudarshan Chemical, EPL, Chemplast Sanmar, Gujarat Fluorochemicals, Tatva Chintan, and Phillips Carbon Black (PCBL).
The brokerage has Maintain suggestions on Rossari Biotech and Galaxy Surfactants whereas it has Scale back stance on SRF, Clear Science and Promote score on Navin Fluorine shares.
“Lauryl alcohol costs rose once more in January 2022 and now stand at ₹167, up 6.3% QoQ. Inflation in Rossari Biotech’s 4 key uncooked supplies will preserve firm margins beneath stress, whereas costs have cooled to some extent however are unlikely to maintain within the close to time period,” it added.
Additional, pigment costs have elevated (good for Sudarshan Chemical) on QoQ foundation, but it surely has barely dipped MoM belying expectations of additional inflation. In the meantime, EPL will proceed to face challenges as a result of elevated polymer costs, as per the brokerage.
“PTFE costs have risen 13.7% YoY to Rs939, according to GFL commentary about worth improve; PTFE volumes grew 20% YoY in Jan’22. Carbon black export volumes have grown 62% YoY, therefore PCBL will see greater mixture of exports (which have decrease spreads in comparison with home gross sales),” ICICI Securities’ be aware added.
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Supply: Live Mint