Edelweiss maintains 'BUY' on Aarti Industries, SRF and Galaxy Surfactants, while maintaining a positive view on the speciality chemical sector
Specialty chemical companies posted strong numbers in Q3FY21 riding pick in utilisation levels led by robust domestic demand as the economy revives from covid-19 challenges. However, surge in input prices (edible, crude oil derivatives) led to margin pressure. While Fine Organics battled margin headwinds, Galaxy Surfactants and Aarti Industries benefited from an improved product basket.
Edelweiss expects PI Industries (HOLD) and SRF (BUY) to continue to post strong top-line growth. Aarti Industries (BUY) and Galaxy Surfactants (BUY) are envisaged to benefit from value additions: Image taken from fine-organics.com