BUSINESS
Nocil: Domestic tyre industry the key growth driver in the near term
The company is well positioned to capture the pick-up in global demand, whenever the tide turns, given the capacity headroom, lean balance sheet, and a diverse portfolio, wherein 25 percent products are specialty applications.
BUSINESS
Navin Fluorine: Improved show by specialty chemicals
Though promising signs are emerging for the CDMO and specialty chemicals business, investors should accumulate the stock only during the consolidation phase of the market.
BUSINESS
Syngene: Inorganic initiative to speed up biologics manufacturing bandwidth
In the medium term, complex APIs and biologics manufacturing would be leading growth drivers.
BUSINESS
Dr Reddy’s: US business momentum cannot be extrapolated
The key growth element missing for Dr Reddy’s is an India story. It aspires to improve its rank and increase maket share in the chronic portfolio in he country. At present, it is a work-in-progress
BUSINESS
Cipla: Sailing well on the US pharma business front
The company’s chronic portfolio continues to gain strength and the US base business has moved to a new orbit. This is supportive for medium-term earnings growth, which makes us constructive on the business.
BUSINESS
Fed policy: What next for investors after a strong run in equities?
The US Fed has hiked its policy rate by 25 basis points but there is a good chance that if inflation remains subdued, it will pause again
BUSINESS
SRF: Chemicals lost some shine, but investments for long term remain on track
In the run-up to results, the stock has corrected by 16 percent. The current consolidation opens an opportunity to accumulate the stock
BUSINESS
Yatharth Hospitals IPO: Wait for a more differentiated business model to emerge
The bulk of the business comes from the NCR region, which is a crowded market for hospitals. Hence, investors looking for long-term gains should wait
BUSINESS
Hikal: Green compliance issues weigh heavy on valuation
The Gujarat Pollution Control Board’s directive to cease operations at the company’s Panoli plant follows a similar move by the Maharashtra Pollution Control Board over its Taloja plant. We are closing our coverage of the company.
BUSINESS
Himadri Speciality: What should investors do after a stellar run?
In the last four quarters, there has been a consistent improvement in operating margin profile. Performance improvement is broadly in line with the base scenario mentioned in the July’22 note.
BUSINESS
Is there more steam left in this leading carbon black maker?
This company accounts for more than 60% of carbon black exports from India and expected to be a key beneficiary of diversification of international supply chains
BUSINESS
Is it time to look at this oleochemicals derivatives play?
The chemicals sector is going through a cyclical slowdown where a large part of the near-term headwinds is already priced in
BUSINESS
Galaxy Surfactants: Macro challenges to ease in H1 FY24
Lower product prices, on account of a drop in fatty alcohol prices, is expected to bring demand back for speciality products, albeit gradually.
BUSINESS
Fed policy: How do investors take position after a hawkish pause?
The possibility of further rate hikes by the Fed and the progress of monsoon can add volatility to the stock market
BUSINESS
Ami Organics: Multiple growth levers coming to the fore
Dominant presence in a few of the pharma intermediates and the emerging op-portunities in chemical applications are key growth drivers
BUSINESS
Nocil: China +1 theme is gradually building up amidst recessionary headwinds
Weak pricing environment weighs on margins
BUSINESS
Sun Pharma: Stretched valuation a sticking point, what else to watch out for?
Elevated promotional/travel expenses and increased competitive intensity would weigh on margins
BUSINESS
Balaji Amines: Does it merit a look?
Key monitorable to watch would be sustenance of operating margins for the subsidiary - Balaji Specialty
BUSINESS
Divi’s Lab: Sequential improvement, but long way to go
An improvement in gross margins is on the cards over the next three to four quarters
BUSINESS
Zydus Lifesciences: Time to book profit, post strong rally over a year?
Management is aiming for a single-digit growth in the US market for FY24 on the back of launches from the Moraiya facility.
BUSINESS
Navin Fluorine: Innovator-led growth to continue in FY24 for this pricey stock
Except for one molecule, the company is not witnessing any pricing pressure for Specialty chemicals as it has increasingly limited exposure to generics.
BUSINESS
Cipla: US business momentum to moderate
A compression in margins is plausible in the near term as employee and other pre-Covid expenses are likely to escalate
BUSINESS
SRF: Chemicals continue to shine, but all priced in
The EBITDA margins are likely to moderate in FY24
BUSINESS
Dr Reddy’s: Time to book profit?
Domestic portfolio rejig, limited-competition products launches in the US, and a ramp-up in China launches are key to the company’s performance
