Order inflow to improve for manufacturers of specialty chemicals

Galaxy Surfactants, SRF, Aarti Industries among companies to benefit given supply of essential ingredients, alternative supply chain to China and weak crude oil prices

Stocks of specialty chemical companies have fared better than companies in other sectors. Since the start of CY20, even as the benchmark indices, Nifty and the Sensex have shed over 25 per cent, specialty chemical companies have posted gains of 3.5 per cent. The gains are largely due to strong demand from user industries in India, falling raw material costs and new orders expected from buyers looking for alternatives given the situation in China.

 

Rohan Gupta and Sneha Tareja of Edelweiss Research believe that