Chemical shares in focus; Clariant Chemicals, Balaji Amines rally up to 18%

Shares surged on expectation of good earnings on back of improved demand.
Shares of chemicals, commodities as well as specialty chemicals companies were trading actively on Wednesday, surging up to 18 per cent in the intra-day trade, on the BSE on expectation of good earnings on back of improved demand.

Individually, Clariant Chemicals (India) rallied 18 per cent to Rs 477.90 after the company announced that its board will meet on Saturday, July 4, 2020, to consider and declare the payment of special interim dividend for the financial year 2020-21.

The stock of the specialty chemicals was trading close to its 52-week high level of Rs 478.15 touched on February 5, 2020. In the past 10 trading days, it has surged 39 per cent after the company’s profit before tax (PBT) grew 158 per cent to Rs 28 crore in the March quarter of FY20 (Q4FY20) as against Rs 11 crore in the corresponding previous year period.

That apart, shares of Balaji Amines hit fresh 52-week high of Rs 558, up 13 per cent in the intra-day trade on the BSE today. The company’s PBT rose 13 per cent to Rs 45.75 crore in Q4FY20. EBITDA margins improved 280 basis points to 23.65 per cent from 20.76 per cent.

The improvement in operating margins, the management had said, was primarily on account of marked increase in volume offtake with improved price realizations largely across all products, increase in operating leverage and benign raw material prices.

The management further added agrochemical sector’s prospects are likely to brighten on account of highest storage across reservoirs over last 5 years coupled with the recent price hike in minimum support price of key kharif crops and initial indications of normal monsoon expected in 2020.

Navin Fluorine International, meanwhile, touched a fresh all-time high of Rs 1,723, up 6 per cent today. In the past three months, the stock has soared 42 per cent as compared to 25 per cent rise in the S&P BSE Sensex. The company’s PBT increased 24 per cent to Rs 62.9 crore in Q4FY20 from Rs 55.8 crore in Q4FY19. EBITDA margins expanded 444 basis points to 24.9 per cent from 20.4 per cent.

CLARIANT CHEMICA 464.05 405.10 14.55
KIRI INDUSTRIES 466.00 415.55 12.14
BALAJI AMINES 540.00 493.65 9.39
BHAGERIA INDUST. 120.90 110.65 9.26
EXCEL INDUSTRIES 745.10 699.90 6.46
MANGALAM ORGANIC 348.80 332.20 5.00
NAVIN FLUO.INTL. 1694.00 1621.55 4.47
SH.PUSHKAR CHEM. 93.70 89.85 4.28
CAMLIN FINE 54.70 52.50 4.19
FAIRCHEM SPECI. 587.95 565.60 3.95

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