Chemicals & Petrochemicals share price target

1) SRF: R-22 prices dipped to INR 312/kg (down 10.9% QoQ) in Q2FY24-TD, export volumes rose 11% YoY to 2kte. In packaging films segment, spreads have improved from lower levels in BOPET and BOPP. 2) Gujarat Fluorochemicals: PTFE prices rose 3.2% QoQ / 9.8% YoY to INR 1,062, while volumes dipped 36.9% YoY to 1.5kte. Other fluoropolymer prices dipped 1.7% QoQ and volumes dipped 8.6% YoY to 530te.

In Q2FY24E, we expect weak performance from the specialty chemicals industry. The revenue is expected to fall by 13.0% YoY and +12.7% QoQ for the chemical companies under our coverage universe. We expect positive growth for Tatva Chintan (in Structure Directing Agent (SDA) segment), Laxmi Organic (long-term contracts signed in specialty intermediate business), Supreme Petrochem (volume growth) and Rossari Biotech (strategic initiatives of integrating Unitop and Tristar).

Chemicals - Q2FY24 - Earnings Preview (Agro-Chem SpChem)

1) SRF: R-22 prices dipped to INR 321/kg (down 8.3% QoQ) in Q2FY24-TD, volumes were down 18.4% YoY to 770te. In packaging films segment, spreads have improved from lower levels in BOPET and BOPP. 2) Gujarat Fluorochemicals: PTFE prices rose 2.3% QoQ / 8.8% YoY to INR 1,052 while volumes dipped 41.5% YoY to 694te. Other fluoropolymer prices rose 1.7% QoQ and volumes dipped 10.6% YoY to 286te.