The Custom Manufactured Chemicals Division of Chemplast Sanmar Limited has signed a Letter of Intent (LOI) with a global agrochemical innovator to manufacture a new pipeline Active Ingredient (AI).

1. The LOI spans a 5-year period, and commercial supplies of the new product are expected to commence in CY 2025.
2. The product will be manufactured in a recently commissioned production block.
3. This marks a significant milestone for Chemplast Sanmar as it’s the first time they will be involved in the manufacture of an AI.
4. It is the third LOI signed by the company in the past 12 months, indicating customer confidence in their research and development capabilities.
5. The Custom Manufactured Chemicals Division specializes in manufacturing advanced intermediates for agrochemical, pharmaceutical, and fine chemical innovators.
6. The division is well-equipped with state-of-the-art production blocks, Pilot, and R&D facilities, allowing them to handle a wide range of chemistries and processes.
7. Chemplast Sanmar Limited is a part of the SHL Chemicals Group and is known for producing a range of specialty chemicals and other chemical products.

Pentonic’s share reducing this quarter really stuck out to me. It can’t just be because of reduction in exports to Myanmar and Sudan. I might be wrong but I don’t think they sell mostly Pentonic in these countries.

The management seemed very defensive this time with their guidance as well. Revising it down to 700cr (assuming max growth of 20% on FY23’s base) in FY25 from the previous guidance of 750cr in FY25.

Not sure if the comparison is mangoes to mangoes.
NSE has about 185 stocks on F&O apart from the Index F&Os (Nifty, Bank Nifty and Fin Nifty being the most prominent ones) as against Sensex F&O being the only F&O product that is being actively traded in BSE. Bankex is still in its nascency.
Eitherway I believe comparing the market share of any of these product is a futile exercise as the products are all different and have independent standalone reason why market participants trade in each of these.
BSE management has done an excellent job in convincing the market participants on the underlying strength and purpose of trading in Sensex contracts. We are currently seeing early signs of Bankex contracts also gaining momentum(though Bankex is not significantly different from Bank Nifty in terms of its underlying).
BSE has a huge opportunity in terms of gaining market share both on derivatives and cash as they have negligible market share currently. Its all about listening to market, introducing the right products, making the trading attractive for participants, providing seamless connectivity and delivering fool proof infrastructure support.
The current management is driven by a purpose to make BSE a vibrant place to invest, trade and hedge by the year 2025 – market seems to be convinced by the actions of the management so for, which is visible from the way price has moved over the last 3-4 months. Now all they need to do is to keep the momentum going and continue to capture the imagination of the participants.

AJ
Disclosure: Remain invested. Views are biased.

No one is talking about the dismal performance of quarterly results. Is it just one off case? or headwinds to continue in the coming quarters?