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Demand woes, lower realisations to hit specialty chemical makers in FY24

Sector is expected to underperform as brokerages cut profit estimates

IOL Chemicals and Pharmaceuticals

Ram Prasad Sahu

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The weak June quarter results of the largest listed specialty chemical maker SRF and multiple global headwinds for the sector are expected to weigh on the prospects of Indian specialty chemical companies in FY24. Stocks in the sector (down 7-18 per cent) have underperformed the benchmarks (up over 10 per cent) in the past three months and given the multiple challenges the trend is likely to continue.

Kotak Institutional Equities expects a very weak quarter (Q1FY24) for the sector due to destocking, demand weakness across certain important end-use industries, and price erosion amid intense competition from Chinese suppliers. They expect both

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First Published: Jul 27 2023 | 12:46 AM IST

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