Stocks to buy: Navin Fluorine, Neogen, Galaxy Surfactants among top picks in chemical sector by HDFC Securities
Also Read: FPI holdings of Indian stocks dip to a decadal low of 16.3% in January In the chemical sector, HDFC Securities has a ’Buy’ rating on Navin Fluorine, Galaxy Surfactants, Neogen Chemicals and Aether Industries. Here are stocks to buy in the chemical sector.
HDFC Securities has retained its ‘Add’ rating on SRF, with a target price of ₹2,449, on the back of deployment of capex for high-growth speciality chemicals business over the next 3-4 years to tap opportunities emerging from the agrochemical and pharmaceutical industries and a strong balance sheet. The brokerage tweaked its FY24 and FY25 EPS estimates for Aarti Industries by +3.5 and +4.3% to ₹8.8 and ₹17.3 to factor in performance in Q3FY24.
It maintained an ‘Add’ recommendation on the stock with a target price of ₹733 per share. Aarti Industries’ constant focus on Capex and R&D will enable it to remain competitive and expand its customer base.
The toluene segment in India is mainly untapped and catered to through imports; AIL will benefit in the long term by entering this segment, said the brokerage. Also Read: PSU banks’ valuations still reasonable despite sharp re-rating, says Motilal Oswal; SBI, Union Bank among top picks The brokerage firm retained its ‘Buy’ call on Navin Fluorine International with a target price of ₹4,014 per share on the back of earnings visibility, given long-term contracts; tilt in sales mix towards high-margin high-value business; capacity expansion led growth; and strong R&D infrastructure.
HDFC Securities cut its FY24 and FY25 EPS estimates by 11% and 10% to ₹47 and ₹80 owing to a slower-than-expected ramp-up in the Honeywell plant and weak performance of Q3FY24. It retained its ‘Buy’ rating on Aether Industries, with a target
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