Alpha Ideas 20-20 | Why Rohit Balakrishnan Likes Dharamsi Morarji Chemical Company
Vrddhi Capital Investment Advisors’ Rohit Balakrishnan thinks little-known Dharamsi Morarji Chemical Company Ltd. is “special”.
“Indian chemical companies have benefited from the shutdown of manufacturing units in China. However, its non-dependence on China due to focus on niche products, long-term contracts for its products offers earnings visibility. Also, its ability to pass on higher costs are some of the positives for the company,” the founder of the investment advisory firm said on the sidelines of Alpha Ideas 20-20 event in Mumbai.
Expansion into newer products and turnaround of its subsidiary, he said, would aid margins.
Key Risks Highlighted
- Execution risk
- Input cost fluctuation
- Product concentration
- Forex volatility
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