Astec Lifesciences

Greatly captured points!
My opinion on the business of Astec and Agrochemical businesses in general-

First and Foremost, all of us would agree on the point that agro-chemical, chemicals in general or even pharma businesses is a complex sector to understand given their thousands of variants, complex value chain, commodity driven supply-demand etc. Owing to these variables it is almost difficult to track these businesses and limited understanding is what drives extremism in this sector.
Case in point – Demand pushed up after Covid-19 and went down drastically after normalcy which led most of the chemicals related businesses to to suffer and so was the case with Astec and even the consistent playes like Atul and Aarti.

In the backdrop of this, one should be extremely cautious while investing in these businesses. It is fair to conclude that these businesses are cyclical and capital intensive. Barring few companies who are into Custom synthesis(PI,Suven,Syngene) most companies are more or less affected by their business cycles and, therefore we as retail investors should take cognizance of this and buy these co.(if one still want to) at significant MOS.