INSUBCONTINENT EXCLUSIVE:
to the decline in crude prices, a cheaper rupee, and the willingness of global buyers to look beyond China.
So, stocks such as Aarti
Industries, PI Industries, Fine Organics, Galaxy Surfactants, SRF, and Vinati Organics can be good picks, said analysts
However, plant lockdowns locally, logistical challenges and consumption spillover would affect their profitability in the short term
Frequent supply disruptions in China started with environmental issues and then came Covid-19
Disproportionate dependency of MNCs on Chinese supplies has already caused a shift in sourcing strategy, something that is likely to favour
the stocks in specialty chemical sectors have outperformed the benchmark Nifty in the last one month, and are trading at fair
registering a compounded annual growth of 19 per cent since 2015 when the Chinese environment issues started.
On the other hand, Chinese
export of specialty chemicals at $173 billion was over seven-fold of Indian exports, implying a robust multiyear export opportunity for
Indian specialty chemical industry in the event of a sourcing switch.
Varun Goel, head of equity, Nippon India AIF, believes some of the
specialty chemical companies should have a fairly long runway
chemical industry in the essential goods value chain, most analysts expect limited impact of Covid-19 on this industry.
