BUSINESS
Food colour companies are in capacity overdrive. What next for investors?
Indian food colour industry is set for dominance after the sharp scale-up in capacity expansion and end-market expertise. Vidhi specialty remains our preferred play
BUSINESS
China supply crisis: Can India’s chemicals step in?
In the last 20 months, COVID, logistics issues, and, now, power shortages have accelerated the global trend of de-risking the supply chain from China which would benefit the entire Indian chemical industry.
BUSINESS
How does the power crunch in China play out for Indian sectors?
China power outages is likely to keep prices of commodities at elevated levels; China-plus theme gets further push
BUSINESS
For Sumitomo Chemicals India, speciality is the trump card
The key near-term trigger for Sumitomo Chemical is the manufacturing of technical grade active ingredients for its parent company
BUSINESS
Fine Organics glued to green chemicals, may keep valuation premium
The medium-term growth in earnings for Fine Organics is expected to be driven mainly by volume growth in new capacities, better realisations and normalisation of input costs
BUSINESS
Fed signals early taper, but there is no immediate impact
The Fed continues to delink interest rate lift-off from tapering. Though the dot-plot of the September meeting hints towards one rate hike of 25 bps in 2022, Powell said “lift-off in policy rates” is not on its radar, as of now
BUSINESS
Ami Organics: Is it time to book profit as strong listing narrows valuation gap?
Post the strong listing, multiples are close to some of the larger players in chemicals, having their end-market as pharma.
BUSINESS
Vijaya Diagnostic: What does this regional player offer amid industry consolidation?
Going forward, technology will be the differentiator, and Vijay Diagnostic's differentiated hub- and-spoke model calls for attention
BUSINESS
SRF: Growth casts its net wide, but margins face pressure
The EBITDA margins of SRF are likely to moderate as the benefit from the operating leverage gets blunted by the margin contraction in the packaging business
BUSINESS
What's the trump card for this speciality chemical player?
Recent developments point to Clean Science and Technology's focus on enlarging product basket and a focus on green chemistry, which helps it differentiate from the rest
BUSINESS
Ami Organics IPO: A play on critical pharma intermediates
Intermediates are the key area where import dependence is huge, and, hence, a company like Ami Organics is likely to benefit
IPO
Vijaya Diagnostic IPO: Can this regional player repeat the success of KIMS IPO?
The key strength of Vijaya Diagnostic lies in its heavy B2C mix – more than 90 per cent of business flows from individual customers. This ensures that the company has almost negligible receivables which helps it to maintain a negative working capital.
BUSINESS
Divi’s Labs: Green chemistry gives it the upper hand
Divi's Labs has a strong focus on ‘green chemistry’, helping it to reduce wastage through technology adoption, leading to better profitability and relationship with global clients
BUSINESS
For NOCIL, demand pick-up, 'China plus' spell good news
On the exports front, enquiries from new customers have increased as MNC clients want to contain the China supply-chain risk
BUSINESS
Cadila: Vaccine opportunity unfolds
On conservative basis, for COVID vaccine opportunity, Cadila can at least add 16 per cent of FY21 sales revenue, on a full-year basis
BUSINESS
Aurobindo Pharma: Termination of inorganic bet eases capital allocation worries
We believe termination of the Cronus Pharma acquisition deal should help remove corporate governance/capital allocation fears
BUSINESS
Suven Pharma: Normalisation of margins adds to comfort
There is an emerging preference for full-service CDMOs. This puts players like Suven in a better spot as it tries to capture the whole of the value chain
EARNINGS
Aurobindo Pharma: Value proposition intact, but consolidation can take longer
In this injectables space, Aurobindo pharma remains constructive and plans to grow from the current annual sales base of $400 million to 650-700 million in three years, backed by new plants in the US and Vizag.
BUSINESS
Lupin: Margin guidance downgrade keeps us cautious
The management of Lupin is confident of scaling back $200 million quarterly revenue run rate for US market by Q3, but at the same time, alluded to overall EBITDA margin guidance of 16-17 per cent in FY22
BUSINESS
Cadila: More a COVID hedge in the near term
Cadila's India presence -- at about 45 per cent of sales -- is similar in size as the US business and provides better cash-flow visibility
BUSINESS
Aarti Industries: Pricing power on display
Ability to quickly harness demand in the macro recovery phase and display of pricing power add to our constructive view on the Aarti Industries stock
BUSINESS
Chemplast Sanmar IPO: More a commodity than speciality product
We would not be surprised, if, in future, the suspension PVC business of Chemplast Sanmar is once again demerged to unlock value for the standalone business
BUSINESS
IPCA Labs: Strong revival for domestic formulations
IPCA, which was mainly known a few years ago for anti-malarial medications, is now having a significant contribution from non-anti-malarial medicines
BUSINESS
Cipla: M&A opportunity could be near-term trigger
Cipla, with its leadership in inhalation, focus on green chemistry and potential deployment of cash savings for new growth drivers, warrants attention
