The Indian specialty chemicals industry is all set to deliver strong earnings growth driven by a steady recovery in demand from the low COVID lows and the ability of industrial manufacturers to pass on higher input costs to customers, against fears of margin squeeze due to higher input prices. Is. Brokerage house Philip Capital said in a note.
brokerage and research firm top stock picks Aarti Industries in Specialty Chemicals Sector (Target Price: 1,200) and Camlin Fine Sciences (Target Price: 250) and have buy ratings on two counters.
“The Indian specialty chemicals industry is likely to report strong sales growth on the back of better realizations on account of improved demand and cost escalation. Furthermore, the gradual improvement in product prices reflects the ability to pass on higher costs, which is an incremental positive,” the note said.
On the other hand, it. The recommendation of Atul Ltd. to upgrade with a target price of Rs. 9,000. It has a sell rating on SRF Ltd. (Target Price: 2,060) and shares with a target price of neutral tag on Vinati Organics 1,900.
Most Indian specialty chemical peers have either integrated their product portfolios or added downstream products in recent times, which coupled with improving demand and strong prices have driven a healthy earnings momentum in Q3, Philip Capital said on Tuesday. highlighted in a note.
The brokerage expects Vinati Organics, SRF, Camlin, Aarti Industries to deliver strong earnings growth of 59%, 56%, 52%, and 34% year-on-year (YoY) respectively in the third quarter.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
Never miss a story! Stay connected and informed with Mint.
download
Our App Now!!
,