Brokerage home ICICI Securities estimates its specialty chemical protection universe income to develop at 42% year-on-year (YoY) throughout Q3FY22 on sharp rise in costs because of enter price inflation. Its high inventory picks within the specialty chemical house are Gujarat Fluorochemicals, Tatva Chintan Pharma Chem and Chemplast Sanmar.
Below its preview report for the third quarter on specialty chemical compounds, the home brokerage and analysis agency sees gross revenue of its protection to develop 29% YoY which signifies robust underlying pattern led by strong development for SRF on pricing profit in ref-gas, and Gujarat Fluorochemicals on turnaround in fluoropolymers.
ICICI Securities’ Purchase suggestions embrace specialty chemical makers Gujarat Fluorochem (goal value: ₹3,086), Chemplast Sanmar (goal value: ₹940), EPL (goal value: ₹290), Sudarshan Chemical (goal value: ₹668), Tatva Chintan Pharma (goal value: ₹2,920), and Phillips Carbon Black (goal value: ₹300).
The brokerage has ‘Maintain’ rankings on SRF with a goal value of ₹2,010, Rossari Biotech (goal value: ₹1,300) and Galaxy Surfactants (goal value: ₹2,875), whereas it has ‘Cut back’ stance on Navin Fluorine (goal value: ₹3,100) and Clear Science & Know-how (goal value: ₹2,110).
Additional, it believes that Rossari Biotech will profit from acquisition. Additionally, Tatva Chintan and Clear Science’s gross revenue to develop regular at 25% on a yearly foundation every, whereas Navin Fluorine development is restricted on pending new capex commercialisation. Galaxy Surfactants would see gross revenue decline YoY on continued problem from unavailability of key uncooked materials and logistic points, the observe said.
Key to be careful, as per ICICI Securities, could be SRF commentary on sustainability of ref-gas costs, Navin Fluorine progress on capex, and Gujarat Fluorochemicals’ execution in PVDF and battery chemical compounds.
The views and suggestions made above are these of particular person analysts or broking corporations, and never of Mint.
Supply: Live Mint