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Chemical Sector's Stress To Continue Unabated, Says PL Capital; Positive Take On Navin Fluorine Among Others

PL Capital continues to maintain its cautious stance on the sector considering muted demand recovery and pricing pressure, especially for agrochemicals.

<div class="paragraphs"><p>Global chemical output was up by 3.9% in CY24, driven by 6.8% growth in China, which constituted 86% of the global chemical production.</p><p> (Photo Source: Pexels)</p></div>
Global chemical output was up by 3.9% in CY24, driven by 6.8% growth in China, which constituted 86% of the global chemical production.

(Photo Source: Pexels)

PL Capital continues to remain positive on Fine Organics (capacity addition planned in FY27), Navin Fluorine (recovery seen in HFO and CDMO demand) and Vinati Organics (strong demand for ATBS and growth in antioxidants). These companies also have low exposure to agrochemicals and are also safeguarded from Chinese competition to a large extent.
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