Specialty Chemical Q3 Preview— Continued Volume Growth To Drive Top-Line; UPL Among DRChoksey's Top Stock Pick

The agrochemical industry is currently facing a mix of positive and negative conditions. While destocking is largely complete and ordering patterns are returning to normal, the industry is still experiencing price pressures..NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..DRChoksey Research Report.The agrochemical industry is witnessing strong volume growth, though partially offset by price reductions. Declining input costs are anticipated to support margin improvements going forward. Overall, in Q3 FY25E our coverage companies will post high-teen revenue growth and strong profitability growth. Robust volume growth continues to be a significant contributor to overall performance across companies. This is due to increased demand in various sectors like pharmaceuticals, agrochemicals, and home/personal care. Several companies are relying on new product launches to boost sales such as UPL, PI Industries and Vinati Organics. Companies like Laxmi Organic Industries and Vinati Organics are expected to benefit from capacity expansions which will drive volume growth.The pricing commentary across the companies is mixed. Companies such as Balaji Amines and PI Industries are experiencing pricing pressures in their end-user markets. While other companies such as Supreme Petrochem, Gujarat Fluorochemicals and UPL are benefiting from stable raw material costs or increased demand leading to better price realization. The key monitorable are-New product launches, Geographical Focus Global demand and the pricing environmentCompetitive pressures. .Our top picks are UPL (Better debt profile coupled with improved performance), Ami Organics (Continued top-line growth momentum driven by projects at various stages)..Click on the attachment to read the full report:.Cement Q3 Results Preview - Is The Worst Over For The Industry? Read Nirmal Bang's Analysis.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Specialty Chemical Q3 Preview— Continued Volume Growth To Drive Top-Line; UPL Among DRChoksey's Top Stock Pick

The brokerage expects positive YoY revenue growth from the entire coverage of specialty chemical companies notably Ami Organics, Gujarat Fluorochemicals, and Laxmi Organic Industries.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP