- Specialty chemicals posted strong results in the recent quarter.
- Top stock brokers have given buy recommendations on certain specialty chemicals and have increased their target price.
Specialty Chemicals have had a healthy momentum in Q3FY22 and these stocks have been recommended by several top stockbrokers.
ICICI Securities Specialty Chemical Recommendations
Brokerage house ICICI Securities expects a few specialty chemical companies’ revenues to grow at 42% year-on-year (YoY). Its top picks include
- Gujarat Fluorochemicals (target price: ₹3,086)
- Tatva Chintan Pharma Chem (target price: ₹2,920)
- Chemplast Sanmar(target price: ₹940)
Some of its other recommendations are Sudarshan Chemical (target price: ₹668), and Phillips Carbon Black (target price: ₹300). It believes that Rossari Biotech will benefit from the acquisition and Tatva Chintan and Clean Science’s gross profits will grow steadily YoY.
PhillipCapital Specialty Chemical Recommendations
“Indian Specialty chemical Industry, against the fear of margin squeeze caused by elevated input prices, is all set to deliver strong earnings growth driven by a steady recovery in demand from the lows of Covid and industrial manufacturers’ ability to pass on the higher input cost to customers,” said brokerage house PhillipCapital in a note.
PhillipCapital has picked the following Specialty Chemical stocks
- Aarti Industries (target price: ₹1,200)
- Camlin Fine Sciences (target price: ₹250)
Earlier in January, this year, it upgraded Atul Ltd recommendation with a target price of ₹9,000. It placed a neutral tag on Vinati Organics (target price ₹1,900).
HDFC Securities Specialty Chemical Recommendations
HDFC Securities has maintained its buy recommendation on Aarti Industries as it posted strong Q3 results. It believes that Aarti Industries’ (AIL) constant focus on Capex and R&D will enable it to remain competitive and expand its customer base. It has given a target of ₹1,380 per share.
Specialty Chemicals provide building blocks for various industries. They are particular chemical products that provide a variety of effects on which many other industries like paper, paints, soaps, detergents and textiles rely. Ex: adhesives, colours, agrichemicals, fragrances, construction chemicals, industrial gases, polymers and so on.
