Specialty Chemicals Q3 Results Preview - Mixed Trend In Ebitda Growth: ICICI Securities

ICICI Securities Report

We estimate our specialty chemical coverage universe’s revenue to grow 12.2% YoY (down 1% QoQ) in Q3 FY23. Ebitda to grow 1.1% YoY (5.1% QoQ), however, excluding Chemplast Sanmar Ltd., 15.9% YoY -

1. SRF Ltd.’s Ebitda to dip (down 7.3%) YoY on lower margin in non-chemicals, while chemicals business to continue its good show;

2. Navin Fluorine International Ltd. (up 64%) to benefit from rise in utilisation of high purity products plant and higher contract research and manufacturing services revenue;

3. Gujarat Fluorochemicals Ltd.’s (57% YoY) growth is likely on a strong show in new fluoropolymers and ref-gas; QoQ dip is from seasonality, and

4. Clean Science and Technology Ltd.’s (44% YoY), Rossari Biotech Ltd. (up 37%), and EPL Ltd.’s (up 13.7%) Ebitda growth to benefit from lower input prices.

5. Tatva Chintan Pharma Chem Ltd.’s performance continues to hurt from muted structure directing agents sales (albeit part recovery QoQ).

6. Galaxy Surfactants Ltd.’s volumes may be muted on weakness in The Africa, Middle East and Turkey, but Ebitda/kg may be healthy.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime 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 BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.