Chemical exports by Indian players slowed down in August 2024 due to geopolitical tensions and increased supplies from Chinese companies, according to a report by brokerage Phillip Capital.
The report stated that the chemical export momentum turned weak in the recent month.
There was a single-digit quarter-on-quarter drop in exports in the quarter-to-date (QTD) period due to factors such as geopolitical tensions, unavailability of containers and Chinese supply aggression, the report said.
On Aarti Industries, the brokerage stated that its exports dropped by 44% to ₹174 crore in August compared to the previous month.
On a QTD basis, exports were also down by 28% compared to the previous quarter and 11% on a year-on-year basis. The sudden weakness in exports was mainly triggered by a 38% QoQ fall in Mono Methyl Aniline (MMA) exports, the brokerage said.
Phillip Capital also downgraded the FY25/FY26 EBITDA forecast by 16% and 9% respectively for Aarti Industries.
Aarti Industries shares dropped by 0.69% to trade at ₹566.95 on BSE at around 10:45 AM.
Phillip Capital, however, raised the target price of Atul Ltd to ₹8,500 per share from ₹8,000 per share following a pick up in the company’s exports.
Atul Ltd exports were at ₹175 crore in August. The company logged a 5% growth in QTD exports on a quarterly basis while on a yearly basis, exports jumped 40%.
Atul Ltd shares rose by 1.04 % to ₹7,960.40 on BSE around 10:45 AM.
The brokerage stated that Vinati Organics’ QTD exports were flat on a quarterly basis but up by 38% on a yearly basis.
Exports stood at ₹121 crore in August, primarily driven by 43% YoY growth in ATBS and an even stronger supply ramp-up in Butyl Phenol and AO.
Vinati Organics shares dropped 0.32% to ₹1919.7 on BSE at 10.45 AM.
SRF Ltd exports stood at ₹339 crore in August. Its QTD exports were down 2% on a quarterly basis and by 10% on a yearly basis.
Trecovery in Spec Chem demand was offset by the weak performance of the other segments, the report stated.