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This Article is From Jan 12, 2021

Chemical Sector Q3 Earnings Preview: Agrochem, Pharma May Aid Topline Growth, Says ICICI Direct

Chemical Sector Q3 Earnings Preview: Agrochem, Pharma May Aid Topline Growth, Says ICICI Direct
An employee mixes a solution at the research laboratory (Photographer Dario Pignatelli/Bloomberg)

BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

With rise in crude oil prices, we expect majority of the companies in our universe to witness an increase in prices of major raw materials.

This is expected to lead companies to pass on that increase to end users albeit partly since we expect part of the RMAT cost increase to be passed on during this quarter due to lag impact.

In terms of volume growth, due to restoration of demand across construction, auto, textile sectors along with sectors that were resistant during pandemic such as pharma, agrochemical, fast moving consumer goods, this is likely to support volume growth for most chemical companies in the last quarter.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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