Q1 results preview: Here's why PI Industries, Galaxy Surfactants, Anupam Rasayan to post better earnings than others
Galaxy Surfactants Ltd, and Anupam Rasayan Ltd, to post better results than players in the bulk chemical and refrigerant gas industries, such as Aarti Industries Ltd, Deepak Nitrite Ltd, SRF Ltd, and Gujarat Fluorochemicals Ltd (GFL). "In the current scenario, we expect players such as PI Industries, Galaxy Surfactants, Anupam Rasayan to continue to witness earnings growth while Aarti Industries, SRF, GFL and Deepak Nitrite faces the earnings downgrade risk," the brokerage added.
The brokerage explained in its report that, despite the fact that export markets are suffering due to the recessionary environment in Europe and the US, companies with exposure to the FMCG industry, such as Galaxy Surfactants and Fine Organics, are not likely to experience significant demand pressure. SRF and PI, two companies that cater to agrochemical innovators, remain optimistic that their product will continue to be in demand and will experience volume increase of 15% to 20%.
Volume growth is being driven by the commissioning of new items. Additionally, given the supply agreements with its clients, Anupam Rasayan is optimistic about volume growth.
The brokerage further stated that it anticipates key participants in the refrigerant gas sector, including GFL and SRF, to experience a steep decline in profitability due to weak local and international demand as well as a decline in realisations. While prolonged winters and recessionary fears have harmed demand in Europe and the US, a delayed summer has slowed demand growth in India.
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