Analysts see mixed third quarter for specialty chemicals firms

Navin Fluorine International

06/01/2023 07:24

By Bharath Rajeswaran
       BENGALURU, Jan 6 (Reuters) -    ** Brokerages expect
mixed bag of earnings for specialty chemicals firms in the third
quarter
    ** Specialty chemicals companies could see an average
revenue growth of 12.2% YoY in third quarter, according to ICICI
Securities 
   ** Adds, earnings before interest, taxes, depreciation and
amortisation (EBITDA) of these companies are expected to grow at
an average 1.1% YoY
    ** SRF  SRFL.NS   and Gujarat Fluorochemicals  GUJL.NS 
could see revenue growth from fluorospecialty business; Navin
Fluorine  NAFL.NS   could benefit from HPP (high performance
product) plant: brokerage says 
    ** Kotak Institutional Equities expects the segment to
report mixed earnings, but adds that there are no compelling
entry opportunities due to high valuations
    ** The brokerage firm also anticipates weak numbers from
crop-protection sector due to channel inventory overhang,
erratic climate conditions which hurt demand for agrochemicals 
    ** Kotak expects strong results from select companies in the
segment with specific growth drivers like PI Industries
 PIIL.NS , Navin Fluorine  NAFL.NS , Clean Science  CLEA.NS ,
Vinati Organics  VNTI.NS   and Tata Chemicals  TTCH.NS  
    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
ICICI Securities' earnings estimates: Speciality chemicals    https://tmsnrt.rs/3Zdbq6q
Kotak Securities earnings estimates: Speciality chemicals    https://tmsnrt.rs/3VM7JS9
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 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463))