Specialty chemical firms can outperform: ICICI Securities. stock to buy/hold

“Gross profit to grow 22.7% year-over-year, which indicates a strong underlying trend, led by our expectation of 1) SRF’s strong growth on continued good performance in Ref-Gas, driven by weakness in the Non-Chem business Offset, 2) Gujarat Fluorochemicals’ (57%) YoY) growth on strong performance in new fluoropolymers, 3) Clean Science (52% YoY) growth on a low basis and 4) New Fluorine’s EBITDA expansion with the commissioning of the HPP plant,” stated in the note.

share the top of it special chemical stock The brokerage has buy ratings on Gujarat Fluorochem, Chemplast Sanmar, EPL, Tattva Chintan and Philips Carbon Black.

Meanwhile, it has stances on SRF, Galaxy Surfactants, Rosary Biotech and Clean Science and Technology. Moreover, it has an ad tag on Sudarshan Chemical while Naveen is short on fluorine stocks.

The brokerage house expects the acquisition to benefit Rossari Biotech. Tattva Chintan’s performance was impacted by sluggish SDA sales. Galaxy Surfactants volumes may drop due to weakness in AMET, but EBITDA/kg could be healthy.

“Chemplast volumes will decline year-on-year on a seasonal and higher basis, but PVC spread is likely to be weak, meaning a steep decline in EBITDA YoY. PCBL’s Gross Profit/Kg is expected to improve on the back of better India sales and export market gains. EPL and Sudarshan may face cost adverse conditions.”

Further, the companies are positive on the long-term structural development of the Indian chemical sector based on the China+1 strategy, focusing on reducing chemical imports, R&D capabilities, and in accordance with its leading and strong position with favorable government policies. , analyst

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.