BUSINESS
Dynemic Products Q1 review; Plant shutdown weighs on sales; capex clearances crucial
Delay in getting the environmental clearance adds to uncertainty. Further, once they get the clearance then it would take about one year or so for the new plant to get operational.
BUSINESS
ITC Q1 review: Stabilising legacy business, new growth levers to aid re-rating
Recently few of its businesses have witnessed encouraging growth traction –volume growth in FMCG business, growth outlook in hotel business and paper business and now stabilization in cigarettes.
BUSINESS
Navin Fluorine: Improved revenue trajectory for specialty chemicals a positive, accumulate
Higher exposure to pharma end markets and improved turnout in specialty chemical is a key positive, which can help company re-rate in the medium term
BUSINESS
Thirumalai Chemicals: Re-rating potential capped on limited pricing power
We remain wary about the product price realization trend given the potential removal of trade protection measure and the limited pricing power of the chemical commodity business
BUSINESS
Risk premium inflates as Trump trade war rages
Even if one expects Trump to succeed, prolonging of political manoeuvres, could make the global supply chain more susceptible to disruption
BUSINESS
Goa Carbon: Elevated green coke prices key to watch out for
Sales realization continues to remain firm and up about ~3 percent QoQ and 15 percent in last six months.
BUSINESS
Bajaj Corp: Q1 volume growth led by rural consumption; acceleration in innovations remains critical
Positives for the company from the earnings result includes growth revival in rural areas and improving distribution reach. Company’s key challenge comes from the changing hair oil industry dynamics which includes competition from the low cost manufacturers.
BUSINESS
Ideas for Profit: Strong growth recovery unfolds in HUL; competitive intensity key
HUL with its high rural exposure (40 percent of sales) and well entrenched distribution network, is amongst the key beneficiaries of further uptick in consumption and related policy announcements, in our view.
BUSINESS
Bhansali Engineering Polymer: Accumulate on deflating valuation froth, positive outlook
BEPL’s strong balance sheet, guidance for better capacity utilisation and promising end markets remain key positives.
BUSINESS
Astral Poly Technik’s Rex Polyextrusion buy a positive, accumulate on dips
The deal gives the company a head start in the high growth and relatively less crowded plastic piping segment
BUSINESS
Can the chemical industry benefit from US-China trade war?
Duties imposed on these commodities are important inputs for various streams like animal feed and plastic processing industries.
BUSINESS
Tata Global Beverages: Restructuring story is still alive
Reports suggest that one of the proposals that Tata Group is evaluating involves merging the salt and branded lentils business of Tata Chemicals with Tata Global Beverages and full consolidation of Tata Coffee
BUSINESS
Graphite electrodes supply-demand dynamics: Let’s do the math again
Graphite India is expected to continue to ride the strong cash flow cycle in the medium term
BUSINESS
Vikas Ecotech: Weaker governance offsets green opportunity
We would err on the side of caution and advice investors to stay cautious given the balance sheet woes and corporate governance issues
BUSINESS
Horlicks: A potential nutrient fit for select FMCG giants
While the category itself undergoes a change, even the existing business of GSK Consumer holds value for other FMCG players and there is a scope for operational synergies
BUSINESS
Prataap Snacks: Munch on this long-term growth story
Over the period, key concerns - higher logistics costs and increasing geographical reach - have been partially addressed due to decentralised production through contract manufacturing
BUSINESS
Fine Organic Industries IPO: Subscribe for the long term
Incorporated in 2002, Fine Organic Industries is the largest manufacturer of oleo-chemical based additives in India.
BUSINESS
Ideas for profit: Improved growth makes these 2 aromatic chemical cos compelling bets
Seya’s capacity expansion of 4 lakh tonne (Rs 735 crore) is expected to get commissioned in H2 FY20.
BUSINESS
Himadri Specialty Chemical: Shift to higher-margin products keeps it ahead of the curve
The company's earnings, seen growing at a CAGR of 36 percent between FY18 and FY20, are expected to be backed by volume growth and diversification to higher-margin products.
BUSINESS
Galaxy Surfactants: 4 factors that make it an attractive bet
The company’s dominant market share, long term strategic partnership, R&D focus and sole focus on personal care end market makes it a defensive bet in the chemical industry.
BUSINESS
Bodal Chemicals Q4: China factor favours vertically-integrated dye makers
While environmental compliance and the resultant plant shutdowns in China is not a new development, situation appears to be more structural as news flow suggest Chinese manufacturers are looking for business collaboration in India to source dyestuff and dye intermediates.
BUSINESS
Alufluoride Q4: Positive volume & pricing outlook; efficiency gain measures to aid margins
The stock is currently trading at 9.9 times/5.5 times estimated earnings for FY19 & FY20 respectively and at an enterprise value of 4 times estimated EBITDA for FY20, This is at a discount to the current valuation multiples for the non-ferrous sector.
BUSINESS
Balaji Amines & Alkyl Amines: Amine chemical makers to buy on dips
Based on near term capacity expansion plans, improving end markets, product pricing scenario, expanding product portfolio both Balaji Amines (16.3x 2019e earnings) and Alkyl Amines ( 17.5x 2019e earnings) are well placed for growth in the near duopoly market.
BUSINESS
Rain Industries: Robust outlook for US aluminum market adds another lever
While the prices of CPC may be nearing their peak, the biggest driver of volumes for CPC products is the potential restart of aluminum production in the United States.
