Top picks: HDFC Securities has a buy recommendation on these specialty chemical stocks

Research analysts at broking firm HDFC Securities said in a note that “even in an environment of global uncertainty, the Indian chemical industry remains an attractive hotbed of opportunities. The uniqueness of the chemical industry is that it requires the creation of both tangible assets and technical manpower.” We believe that domestic chemical companies have abundant opportunities for participation in technology. By making strategic investments in research and development (R&D), chemical companies may be able to take advantage of a variety of opportunities. New opportunities may emerge in the industry in the form of collaborations with technologically advanced global companies.”

“Instead of being sold based on their chemical identity, specific chemicals are often sold based on how well they perform in the intended application. Therefore, significant application development and R&D investment is required for the business to remain relevant. is needed,” he added.

He further claimed that “the development of the chemical industry is not hostage to any one economic parameter or any one end-user industry. The growing domestic demand and the need to grow have forced domestic chemical companies to expand their capabilities to remain competitive.” Our positive outlook on the sector is backed by its robust growth, aided by diversification in terms of chemistry and/or technologies. We are Aether Industries, Neogen Chemicals, Navin Fluorine, Galaxy Surfactants, NOCIL, Aarti Industries , ADD on SRF, Fine Organics, Sudarshan Chemical, while maintain sell on Deepak Nitrite, Vinati Organics and Alkyl Amines. We maintain a buy position on Amy Organics Ltd (TP: INR 1,160) and Clean Science & Technology Ltd ( TP: INR 1,230) and also initiating coverage with SELL recommendation.

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