I had been chasing this stock since its Rs. 800 market price days (145% up since then) and have missed a couple of buy opportunities in this stock. But, better late than never, I am holding heavy long positions in this stock and aiming for more in coming months. With robust Q1 FY22-23 results, it has shown great promise in its annual report 2021-22 as well. The revenue and profits are all time high, but what is more important is that with its organic growth, it possess attitude like that of debt-free giants like ITC. The largest contributor to its profit is Phenolics, followed by Basic Intermediaries, Specialty Chemicals and Performance products with most revenue from the domestic market. India is an emerging economy with one of the lowest Special Chemical consumption per capita, leaving it with highest chances of growth in the sector.
With world moving towards 'China +1' strategy and motivating PLI scheme by the Government of India, the company heads towards a much larger market capture while keeping check over fundamental interest of investors in profits.
For me, the company has excellent long term prospects. My current target price for FY2022-23 is Rs. 2750 (up 40% from current level) with no upper cap for years to come.
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