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.
BUSINESS
Thirumalai Chemicals Q4 review: Turnaround in Malaysian arm key positive
At present, the stock is trading at a multiple of nine times FY19e earnings, which is at a discount compared to peers in the chemical sector.
BUSINESS
Rain Industries: US sanctions on Rusal may not affect volumes, pricing supportive
Prevailing price inputs from market and takeaways from the quarterly result of Goa carbon suggest that carbon products (both CPC and CTP) may report 11-12% pricing growth (Quarter on Quarter).
BUSINESS
Goa Carbon: Plant shutdown and higher expenses weigh on earnings
Almost in sync with CPC prices, raw material prices (Green coke) have also surged
BUSINESS
For US-China trade tensions to dissipate, Xi Jinping must walk the talk
Although we have not accounted for luxury goods and other agriculture products here, the analysis suggests that reducing trade deficit by $50 billion is a tall ask.
BUSINESS
Ideas for Profit | Navin Fluorine: Leading player in the transformative chemistry of fluorine
Company’s continuous investment and R&D (4%-6% of Sp. chemicals and CRAMS sales) into complex fluorine applications are expected to lead the topline growth
BUSINESS
US-China trade war: Escalation may just be a precursor to negotiations
The market appears to be drawing comfort from this realization, with leading equity indices bouncing back from their important support levels.
BUSINESS
Galaxy Surfactants: FDA inspection procedural with no financial impact
Unlike other regions, sunscreen sold in the USA is regulated as a drug. FDA interpretation is that the product makes a drug claim i.e. to help prevent sunburn or to decrease the risks of skin cancer and early skin ageing caused by the sun.
BUSINESS
Vikas Ecotech may benefit from regulatory push for substitutes to lead-based products
Lead-based stabilizers now cater to 75-80 percent of the domestic demand. So when the government decides to enforce the phasing out of lead-based stabilizers, it can open up a huge opportunity for the company.
