BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Report
Our positive stance on our speciality chemicals universe is premised on -
1. domestic availability of raw materials,
2. accelerated capital expenditure (capex) to build product development capabilities and backward integration resulting in Ebitda and profit after tax compound annual growth rate of 19/23% over FY21-23E,
3. investment in research and development, which would allow these companies to step up their position in the speciality chemicals manufacturing value chain to become 'proprietary chemical producers', and
4. import substitution along with export opportunity.
Being a B2B business industry, the growth of the industry tends to mimic the growth of its end-user industry.
We believe that companies supplying speciality chemicals to pharmaceutical and agrochemical industries are in a sweet spot due to steady growth and stringent regulations that create entry barriers for competitors.
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 brokerage 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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
