2 Top Chemical Stocks To Buy As Listed In Angel One's March Stock Picks

Published: Thursday, March 10, 2022, 19:07 [IST]

While the chemical stocks due to the recent surge in crude prices also suffered, nevertheless given the individual stock fundamentals, Angel One-heavily research backed brokerage has recommended to buy 2 chemical stocks right away for gains up to 50%.

So, here are the stock recommendations together with the rationale for a 'Buy' in them:

Jubilant Ingrevia:

Formed upon spinning off the chemical and life science business of Jubilant Life Sciences. The company with a good range of products is the top producer of Pyridine - Beta and vitamin B3 globally.At current levels the stock is trading at P/E multiple of ~13xFY23 EPS which is at a significant discount to other chemical companies. Therefore, we believe that there is value in the stock at current levels and hence rate it a BUY. From the current price of Rs. 466.85, it implies profit upside of 50%.

Pidilite Industries:

PI Industries is a leading player in providing Custom synthesis and manufacturing solutions (CSM) to global agrochemical players. The CSM business accounted for over 70% of the company's revenues in FY21 and is expected to be the key growth driver for the company in future

The company has been increasing its share of high margin CSM business driven by strong relationship with global agrochemical players. PI is leveraging its chemistry skill sets and is looking to diversify its CSM portfolio to electronic chemicals, Pharma API, fluoro chemicals, etc. which will help drive business. We expect PI Industries to post revenue/PAT CAGR of 20.0%/22.5% between FY21-FY24 driven by 20% growth in the CSM business over the next 2-3 years Moreover foray into new segments like electronic chemicals and APIs will also help drive growth over next 3-4 years for the company.

This is a gain in price by 46% given the current price level of Rs. 2349.9 per share.