7 Stocks To Buy From The Specialty Chemicals Sector After Good Results

Markets have recovered a bit, after plunging whole of last week, though volatility continues to remain high. Sharekhan has come out with its latest report in the Agriculture and Specialty Chemicals sector. Here are 7 stocks that you can buy from the sector according to the brokerage firm.

Robust demand to offset margin pressure

According to the brokerage, sustained strong demand recovery in domestic and exports markets led to beat in revenue growth at 49% y-o-y for our coverage universe but margin (down 248 bps y-o-y although in-line) continue to remain under pressure due to elevated freight, energy cost and time-lag in pass through for input cost rise.

"Consequently, net profits growth was also strong 27% y-o-y for our coverage universe as robust revenue growth offsets margin pressure. SRF and Aarti Industries were the best performers with beat on all fronts," the brokerage has said.

Buy these stocks with a caution on the markets

Recent market volatility is a right opportunity to invest in quality agri-input and specialty chemical stocks as structural earnings growth driver remain intact despite near-term challenges in terms of elevated input cost," Sharekhan has said.

While investors can look at these stocks as recommended by Sharekhan, one must also be aware of the fact that markets are highly volatile at the moment.
"While markets have seen a pullback - volatility is expected to remain high over the next few days. Investors are uncertain over how the war would progress. Now, markets will keep an eye on the outcome of talks between Ukrainian officials and their Russian counter parts. While traders need to remain cautious of sharp volatility, Investors can use the current dip to gradually add quality blue chip companies in their portfolios," says Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Buy these stocks with a caution on the markets

Recent market volatility is a right opportunity to invest in quality agri-input and specialty chemical stocks as structural earnings growth driver remain intact despite near-term challenges in terms of elevated input cost," Sharekhan has said.

While investors can look at these stocks as recommended by Sharekhan, one must also be aware of the fact that markets are highly volatile at the moment.

"While markets have seen a pullback - volatility is expected to remain high over the next few days. Investors are uncertain over how the war would progress. Now, markets will keep an eye on the outcome of talks between Ukrainian officials and their Russian counter parts. While traders need to remain cautious of sharp volatility, Investors can use the current dip to gradually add quality blue chip companies in their portfolios," says Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Disclaimer

The stocks have been picked from the brokerage report of Sharekhan. Investing in equities poses a risk of financial losses, especially as we are seeing volatile markets now. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article. Please consider investing with utmost caution.