• Brokerage firm HDFC Securities is bullish on specialty chemical sector on the back of 4 catalysts for growth which are aggressive capex investment, strong R&D infrastructure, availability of land for future expansion and new chemicals and technologies.
Brokerage firm HDFC Securities is bullish in the specialty chemical sector on the back of 4 catalysts for growth which are aggressive capex investment, strong R&D infrastructure, availability of land for future expansion and new chemicals and technologies.
Research analysts at broking firm HDFC Securities said in a note that "even in an environment of global uncertainty, the Indian chemical industry remains an attractive hotbed of opportunities. The uniqueness of the chemical industry is that it requires the creation of both tangible assets and technical manpower." We believe that there are immense opportunities for domestic chemical companies to participate in the technology.
Chemical companies may be able to take advantage of a variety of opportunities by making strategic investments in research and development (R&D). New opportunities may emerge in the industry in the form of collaborations with technologically advanced global companies."
“Instead of being sold based on their chemical identity, specific chemicals are often sold based on how well they perform in the intended application. Therefore, significant application development and R&D investment is required for the business to remain relevant. is needed," he added.
He further claimed that "the development of the chemical industry is not hostage to any one economic parameter or any one end-user industry. The growing domestic demand and the need to grow have forced domestic chemical companies to expand their capabilities to remain competitive." forced to.
Our positive outlook on the sector is supported by its strong growth, aided by diversity in terms of chemistry and/or technologies. We buy on Aether Industries, Neogen Chemicals, Navin Fluorine, Galaxy Surfactants, NOCIL, Aarti Industries, ADD on SRF, Fine Organics, Sudarshan Chemical, while maintain sell on Deepak Nitrite, Vinati Organics and Alkyl Amines. We are also initiating coverage with a Buy on Amy Organics Limited (TP: INR 1,160) and a Sell recommendation with Swachh Science and Technology Limited (TP: INR 1,230).
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