Speciality chemicals- next big Idea!

Can speciality chemical stocks be the next big Idea. Which companies offer best growth opportunity and valuations. Kindly suggest.

 

I am actually very bullish on Excel Industries. Its a small cap, but very interesting company. Diversity of chemical production. profitable and growing even when their main source is from agrochemicals. Also into API chemicals and other speciality chemicals. I am invested in Kanoria Chemicals as well, although the company has diversified into textiles, auto components etc. But still a very reputed name in Industrial Chemicals.

Camlin fine is another interesting bet, although its story is already a bit well known. They have big plans in the food chemicals space and they want to grow globally. I also like Bharat Rasayan. That stock seem to offer value because of low growth of agriculture and therefore available at lower valuations. But I feel they can be accumulated for good returns in the next 3-5 years.

PI industries, Vishnu Chemicals, Navin Fluorine are other good but expensive bets.

 

Sudarshan Chemical

 

Meghmani Organics is a good bet...

 

Vinati weekly chart. Looks a good pick for medium term.

 

How about kiri industries? It has risen up very fast. But they are hugely benefiting from price rise(up to three times) in china market(mostly due to closing down of competitors). according to SP Tulsian its expected EPS would be 120 and share is trading at 190.

I do like Vinati and camline as long term picks.

 

Mr. Tulsian said that the stocks of companies making dye intermediates (not dyes and pigments but dye intermediates) will be in big demand during next three to four months.

 

Tulsian bullish on bodal chemical too. Keep a watch.
some other good chemical stocks are balaji amines, Vishnu Chem, Navin Flu.

 

Hi,
Main reason of speciality chemicals and dye chemical manufacturing company being in limelight is because of stricter norms of china which account for largest productions . Now due to slowdown in china major benefit has to come to India being a substantial player in chemicals .Indian capacity is having size of 1/15 times of china and if china is slowing and coming down to 12 than indian has to become 3 which is 300% capacity buildup . Any Indian company having excess capacity or plan capex to expand capacity is going to benefit in long term . So looking at the situation, speciality and dye chemicals offers great opportunity for coming 3-5 years.

Cheers
Happy Investing

 

Any names of stocks you have after doing research? Pls share names of stocks.

 

Meghmani has shot up with 100% gains in recent past.

 

Bodal Chemical


Kiri Industries


Atul


Navin Fluorine


Meghmani Organics


Sudarshan Chemical


Vinati Organic

 

Not Speciality but Chemicals worth mentioning :

Camphor and Allied Products


UPL

 

I heard on a tv interview that China has temporarily shut down its major Chemical and Dye Companies owing to G20 summit. These companies are creating major air pollution and China does not want G20 leaders to know that. China wants G20 leaders to see a clear blue sky during the G20 summit in September 2016. The specialty chemicals stocks are running owing to increased demand of Indian made specialty chemicals which is a result of drop in production of Chinese chemicals and dyes.

Can you comment on that? Does that mean that this run of specialty chemical and dye stocks will stop after G20 Summit?

 

Good Q I also want to know answer.

 

Regarding Kiri Industries and Bodal Chemicals, I think I found the answer. Please watch the following videos :

Mr. Tulsian's views on Kiri Industries and Bodal Chemicals.

https://www.moneycontrol.com/news/s...wskiri-industries-bodal-chemical_6149821.html

https://www.moneycontrol.com/news/m...ks-hdil-db-realtyavoids-hindalco_6195441.html (Mr. Tulsian's reply to 2nd question of Anuj)

Mr. Prakash Diwan's views on Kiri Industries

https://www.moneycontrol.com/news/stocks-views/prefer-kiri-industries-prakash-diwan_6138921.html

Manish P Kiri, managing director at Kiri Industries, says the company is likely to report 30 per cent growth in its revenue for FY2017 and its operating profit may jump over 60 per cent on increased product pricing.

https://profit.ndtv.com/videos/news/video-expect-30-revenue-growth-in-fy2017-kiri-industries-410770

 

So it is story of only 3 to 4 months then how much money one can invest in such stocks looks risky?