2 chemical stocks to buy, to accumulate after the first quarter results, as recommended by Nirmal Bang

National brokerage and research firm Nirmal Bang Institutional Equities is bullish on two chemical stocks after their respective Q1FY23 results – which are Navin Fluorine International (NFL) and Tatva Chintan Pharma Chem and have Buy and Accumulation ratings respectively. on stocks.

Chemical stocks to buy

Navin Fluor: Navin Fluorine International’s operational performance in 1Q23 is in line with the broker’s estimates. Specialty Chemicals recorded strong growth and management indicated that the pipeline of new products in Specialty Chemicals remains strong.

NFIL continues to be the brokerage firm’s top stock pick in the specialty chemicals stock hedging universe and maintained its buy rating on Navin Fluorine stock with an unchanged price target (TP) of 4,500

“We believe NFIL is preparing for a brighter future given its focus on product and engineering R&D, capacity building, and talent management initiatives. We see very few companies emphasizing technology and infrastructure development aggressively and the same should be NFIL’s advantage over its peers,” the note reads.

Tatva Chintan Pharma Chem: Tatva Chintan (TATVA) Q1 FY23 EBITDA was approximately 29% lower than estimated due to higher than expected revenue pressure from SDA and foreign exchange loss of about 50 mins.

The brokerage expects the mixed margin to remain at the current level for the next two years. Also, the risk of delay in scaling and competitive challenges are higher, in our view. Despite short-term challenges such as chip shortage, raw material (RM) cost inflation and deteriorating freight scenario, Tatva Chintan Pharma Chem’s share price performance has been stable over the past six months. last months.

Revenues (excluding SDA) were up 60% year-over-year, with all sub-segments, namely PTC, PASC and Electrolyte Salts, growing significantly. SDA sales were impacted by semiconductor issues, the geopolitical situation in Europe and prolonged shutdowns in China due to the Covid-19 outbreak.

“While we continue to remain positive on the growth potential of SDAs, TATVA is also working aggressively on other segments, where the risk of delay in scaling and competitive challenges are higher, to our We therefore maintain the Accumulate rating with an unchanged target price (TP) of 2,650,” Nirmal Bang added.

The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.

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