Chemical Industries Are Strongly Fighting Against Tropical Storm Harvey and Rising More Stocks


The commodity and specialty chemical suppliers have been in major demands since past few weeks partially because of the obstruction hit by the tropical storm Harvey that has damaged nearly 30 to 40 percent of the capacity of the United States Chemicals.

According to the reports the disaster has menaced the shortage of ethylene, chlorine, soda ash, sodium and many other chemicals. The disruption has yet resulted in -4.85 % sharpBSE growths in the prices of these chemicals.

Get Free Sample Copy of Report

India, which possess the world’s fastest growing chemical industry, has arose as an alternative hub for the chemical manufacturing to China because of its low price advantage and de risking strategies of MNCs for their sources from China, says the report obtained from analysts. Most of the Indian chemical manufactures’ shares rallied between 25 percent and 50 percent in the last month.

Kiri Industries Limited (KIL) is one of the biggest manufacturer and exporter of a wide range of Chemicals, Intermediates and Dyes located in Gujarat, India. The company has seen an operative turnaround on the basis of standalone account of the surging costs of dye intermediates that comprises about 69 per cent of revenues of the company because of the reduction in the elevated competition by the Chinese players.

An analyst, Arpit Bhatt from HDFC Securities said in a statement that, “Apart from this turnaround, KIL has indulged in a serious debt reduction efforts which has brought down the debt of the company by around 46 per cent in FY16 and further by 40 per cent in FY17.”

However, Himadri Speciality Chemicals has around 70 per cent shares of domestic market in carbon industry and it manufactures coal tar pitch (CTP) as well as 17 per cent shares in carbon black. The stocks look potentially to rising and more interesting, according to the analysts.

Avishek Datta, an analyst from Prabhudas Lilladher said that, “Strong momentum in the core business along with limited capex will help HSC deleverage its balance sheet further and open up growth opportunities.”

Previous articleInk: a Revolutionary Entity
Next articleSeaweeds could Gift Your Skin through Eco-friendly sunscreen
Shawn Symonds
Fifteen years in pharmaceuticals has made Shawn an expert in everything related to medicines, drugs, chemicals and related sectors. Through his insider access to the sector, he has gained valuable insight into the entire manufacturing process of medicines and vaccines.