Chemicals stocks surge; Sudarshan Chemical, Camphor & Allied soar over 10%

AksharChem, Sunshield Chemicals, Camex, Kiri Ind, Vidhi Dyestuffs and Thirumalai Chem were up more than 10% each.

Shares of chemicals companies are on a roll with most of the mid-and-small sized shares rallying by up to 20% on the BSE in intra-day trade.

Camphor & Allied Products (20% at Rs 617), Sudarshan Chemical Industries (17% at Rs 109), AksharChem India (16% at Rs 227), Sunshield Chemicals (13% at Rs 370), Camex (13% at Rs 26), Vidhi Dyestuffs Manufacturing (13% at Rs 74), Thirumalai Chemicals (11% at Rs 210) and Kiri Industries (10% at Rs 167) are few stocks surging more than 10% each on the BSE during intra-day trade.

Kiri Industries has hit the upper circuit for the second straight day, after the company said that there has been a sudden dramatic change in the market situation of Dyes Intermediate especially H-acid and vinyl sulphone due to closure of a leading manufacturing plant in China. The stock currently trading to its 52-week high of Rs 167, has been more than doubled in past six trading sessions from Rs 88 on March 29, 2016.

The company also said that it has executed agreements for settlement of all its debt. This has resulted in significant reduction of borrowing of the company by the end of financial year 2015-16 and the total borrowings of the company have been reduced from Rs 853 crore to Rs 411 crore, which is about 51.87% reduction compared to the previous financial year.

The average price of H-acid during the previous financial year which has been ranging from Rs 300 to Rs 360 per Kg. was now shot up to about of Rs 900 to Rs 1,000 per kg and average price of vinyl sulphone during the previous financial year which stood at Rs 160 to Rs 180 per Kg. was now shot up to about of Rs 240 to Rs 275 per kg globally.

Clariant Chemicals (India), Bodal Chemicals, Nitta Gelatin India, Deepak Nitrite, Excel Industries and Kanoria Chemicals & Industries were up between 5%-10% on the BSE.