Key Points
In its expert series analysis on the chemical sector, domestic brokerage Nuvama Institutional Equities projected that companies like Galaxy and PI Industries would likely continue growth while agrochem-focused players would likely face demand pressure..
After speaking with a chemical expert to gain insight into the current situation, the brokerage summarised some of the most significant takeaways learned, including the fact that inventory destocking is still ongoing and might pick up speed in Q3FY24 as major companies in the global market concentrate on year-end balance sheets..
The last two to three years have seen an increase in Chinese chemical industry capacities, but the current aggressive price scenario may not remain..
In the long run, India may continue to gain market share from inventors and new molecules, while generic chemicals and intermediate manufacturers may continue to face pressure. . "Exciting news!.
In the medium term,Indian players can seize business opportunities from European outsourcing and the launch of complex molecules that require higher number of stages," Nuvama explained..
