Prefer Kiri Industries: Prakash Diwan

Prakash Diwan of prakashdiwan.in told CNBC-TV18, "Kiri Industries has been abuzz in the last few weeks and interestingly, what Manish Kiri mentioned about China, this has happened after last month, a company called Hubei Chuyuan, which is the largest dye intermediate manufacture in the world makes 2,000 tonne, which is 30 percent of the global consumption shut down the plant. The Chinese government has asked most of these polluting plants to move from the east side to the west side. The east is heavily populated, so they see a danger to human life if something goes wrong. Interestingly, the prices started increasing the moment Chuyuan actually halted production at this plant. So, not just Kiri, you should look at smallcap companies like intermediate producers." "It is a small company, so I would recommend people to buy into it at this time, it is called Vipul Dye Chemical. That is an intermediate producer and there is a very brilliant company called Chromatic India which is also in the same space. This entire thing is going to be this speciality chemicals, is the next big thing for India. What has happened is, over the last three years, we have got into some export markets thanks to our quality acceptance. And if you remember last year, we had mentioned a lot of stocks like Vinati Organics, Vishnu Chemicals and Bodal Chemicals, all of them are doing so well. But it has been a quite build up without really people discovering that India has a very strong foothold in these markets which could grow. So, after auto ancillaries, this is the next big thing," he said."We have started finding it quite interesting. These smallcap companies are to be looked at with very good fundamentals backed with good headroom for growth."