Sector Update | 28 October 2024
Chemicals
Chemicals
Our earlier reports
India’s vision for a thriving chemical industry!
We recently attended an industry event, and below are the key highlights from the event:
India's journey toward becoming a USD32t economy is spearheaded by the chemical
and petrochemical sectors, with manufacturing poised to experience a 50-fold jump to
USD6t, fueled by strategic partnerships and innovation.
Collaboration is essential for advancing India’s leadership in sustainable chemical
innovation and for envisioning a future in which circular practices transform the global
market, according to an expert.
The Secretary of the Department of Chemicals and Petrochemicals outlined the goal of
capturing 17% of the global chemical market by CY30, positioning India as the second-
largest player in the domain. Supported by the Start-up India initiative, efforts will
focus on bio-plastics, sustainability, and waste recycling, with the aim of doubling
chemical exports over the next decade.
Powerhouse of chemicals in India
Gujarat, which contributes 35-40% of India’s chemical exports, has rapidly
developed over the past decade, driven by effective governance and the
Production-Linked Incentive (PLI) scheme. This enhances self-reliance in the
chemical industry.
Madhya Pradesh is gaining attention with a major chemical complex and 275
pharmaceutical units, making it India's fourth-largest exporter of medicines. The
state has launched the INR 500b Bharat Petrochemical Project in Bina,
highlighting its commitment to investment and innovation.
India's potential to lead the transformation of the global chemical and
petrochemical sectors is enormous, with Odisha playing a pivotal role due to its
resources, strategic connectivity, and investor-friendly policies. The state is
transitioning from a mining hub to a key player in the chemical industry.
Government’s commitment and future projections
Valued at USD220b, India's chemical industry is set to reach USD300b by CY29
and USD1t by CY40. Currently, being the sixth-largest globally and fourth in Asia,
the industry contributes 8% to India's manufacturing and aids various sectors.
The commitment from various state governments is crucial in this aspect. The
government is anticipated to initiate a policy in pharma and a policy related to
chemicals too. India's commitment to innovation, sustainability, and global
leadership would help it make a bigger mark in the chemical industry. Research
and innovation are also essential for the future of the sector.
India is set to lead the global chemical and petrochemical sectors through
sustainable practices, strategic investments, and strong government support,
aiming to achieve its ambitious goals and boost the global economy.
Aman Chowdhary- Research Analyst
(Aman.Chowdhary@MotilalOswal.com)
Sumant Kumar - Research Analyst
(Sumant.Kumar@MotilalOswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
28 October 2024
1
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Chemicals
Valuation and view
P I Industries (PI):
PI has levers in place to sustain the near-term growth. This
will be led by: 1) consistent growth momentum in the CSM business; 2) product
launches in the domestic market; and 3) the recent acquisition in the pharma
API and CDMO segments. We expect a revenue/EBITDA/adj. PAT CAGR of
16%/18%/13% over FY24-27.
We reiterate our BUY rating with a TP of
INR5,470.
Atul (ATLP):
ATLP is enhancing its plant efficiencies, expanding capacities, and
growing market share globally. The 50ktpa liquid epoxy resins plant, set to
commission in FY25, has a revenue potential of INR8b. Its caustic soda plant
(300tpd) resolved initial issues by 1HFY25, while Anaven’s Monochloroacetic
acid plant is expected to reach optimal utilization in FY25.
Reiterate Buy with a
TP if INR9,995.
Vinati Organics (VO):
We continue to believe that VO’s overall long-term growth
outlook is healthy. The stock is trading at ~37x FY26E EPS of INR50.9 and ~27x
FY26E EV/EBITDA. It had a fixed asset turnover of 1.5x as of FY24. We value the
company at 45x Sep’26E EPS.
We reiterate our BUY rating with a TP of
INR2,500.
Galaxy Surfactants (GALSURF):
We estimate a volume CAGR of 9% over FY24-
27. This will be led by robust volumes in the domestic market and a recovery in
specialty care product volumes in the developed markets, which have already
started growing.
Reiterate BUY with a TP of INR3,755.
Exhibit 2: The sector trades at 4.1x one year forward P/B
P/B (x)
Min (x)
7.0
5.5
Avg (x)
+1SD
Max (x)
-1SD
Exhibit 1: The sector trades at 35.5x one year forward P/E
56.0
42.0
28.0
14.0
P/E (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
34.5
24.3
14.1
10.9
43.4
5.7
4.4
4.1
2.1
35.5
4.0
2.5
1.0
3.2
0.0
1.7
Source: Company, MOFSL
Source: Company, MOFSL
28 October 2024
2
 Motilal Oswal Financial Services
Chemicals
Exhibit 3: Peer comparison for our coverage universe
Company
Alkyl Amines
Atul
Clean Science
Deepak Nitrite
Fine Organic
Galaxy Surfact.
Navin Fluorine
NOCIL
P I Industries
SRF
Tata Chemicals
Vinati Organics
Reco TP (INR)
Neutral
Buy
Neutral
Neutral
Sell
Buy
Neutral
Neutral
Buy
Neutral
Neutral
Buy
2,305
9,995
1,580
3,005
4,250
3,755
3,240
315
5,470
2,080
1,070
2,500
EPS (INR)
FY25E FY26E FY27E
41.5 56.9 74.8
172.6 222.4 275.4
26.6 36.0 43.1
73.8 80.6 91.1
118.8 119.0 123.7
97.7 115.0 135.1
57.6 82.1 103.1
9.4 11.7 13.5
112.5 136.9 160.3
40.5 67.4 88.9
30.7 49.0 61.6
42.7 50.9 60.2
P/E (x)
P/BV (x)
FY25E FY26E FY27E FY25E FY26E FY27E
48.1 35.1 26.7 7.3
6.4
5.5
42.9 33.3 26.9 3.9
3.6
3.2
56.1 41.4 34.6 10.9 8.9
7.3
36.2 33.1 29.3 6.4
5.5
4.7
38.9 38.9 37.4 6.5
5.6
4.9
29.6 25.2 21.4 4.2
3.7
3.3
57.3 40.2 32.0 6.3
5.7
5.0
28.2 22.6 19.7 2.5
2.3
2.2
38.5 31.6 27.0 6.4
5.4
4.6
54.5 32.8 24.8 5.4
4.8
4.1
34.6 21.7 17.3 1.2
1.2
1.1
45.2 37.9 32.0 7.1
6.2
5.4
EV/EBITDA (x)
FY25E FY26E FY27E
30.2 23.1 17.7
23.9 19.9 16.6
40.5 31.9 26.2
24.8 21.9 19.4
27.8 27.1 25.4
18.3 15.7 13.4
35.2 26.5 21.7
19.9 16.2 14.0
26.3 21.5 18.0
26.9 19.5 15.6
12.9 9.7
8.3
31.9 26.9 22.9
ROE (%)
FY25E FY26E FY27E
15.9 19.4 22.2
9.5 11.3 12.6
21.3 23.7 23.1
19.2 17.9 17.3
18.0 15.4 14.0
15.0 15.8 16.4
11.5 14.9 16.6
9.0 10.6 11.4
18.0 18.5 18.3
10.2 15.5 17.9
3.5
5.4
6.5
16.8 17.5 18.1
Source: Company, MOFSL
Exhibit 4: The sector is trading at a premium to historical averages
Companies
Chemicals
Alkyl Amines
Atul
Clean Science
Deepak Nitrite
Fine Organic
Galaxy Surfactants
Navin Fluorine
NOCIL
P I Inds.
SRF
Tata Chemicals
Vinati Organics
Current
P/E (x)
35.5
39.6
36.6
46.5
34.3
38.9
26.8
45.9
24.6
34.2
39.3
25.7
40.7
15 YR
18.7
24.5
22.4
NA
17.4
34.0
25.6
25.2
15.2
25.7
19.3
10.5
26.7
Average P/E (x)
10 YR
24.3
33.8
30.8
61.8
21.3
34.0
25.6
35.4
18.1
32.3
26.2
13.6
34.4
5 YR
32.4
55.3
43.4
61.8
26.4
36.5
27.3
56.4
23.7
35.2
35.1
19.9
46.5
15 YR
89.1
61.6
63.2
NA
97.4
14.3
4.7
82.3
61.7
33.2
103.9
145.0
52.1
Prem / Disc P/E (%)
10 YR
46.0
16.9
18.8
-24.8
61.1
14.3
4.7
29.7
36.3
5.9
50.2
88.8
18.1
5 YR
9.3
-28.4
-15.7
-24.8
30.3
6.6
-1.9
-18.6
4.0
-2.8
11.9
29.2
-12.5
Source: Company, MOFSL
Exhibit 5: The sector is trading at 35.7x on one-year forward as of date
One-year forward P/E as on IC date
Current one-year forward P/E
AACL
ATLP
CLEAN
DN
FINEORG GALSURF
NFIL
NOCIL
PI
SRF
TTCH
VO
Source: Bloomberg, MOFSL
28 October 2024
3
 Motilal Oswal Financial Services
Chemicals
PI – Financial summary and assumptions (TP: INR5,470) – BUY
Exhibit 6: Expect 16% revenue CAGR over FY24-27
Revenues (INRb)
36%
19%
16%
23%
18%
14%
18%
16%
21.3% 22.1% 21.6%
23.8%
Exhibit 7: EBITDA expected to expand by 120bp
EBITDA (INRb)
Margins (%)
26.3% 26.7% 27.5% 27.5%
Growth (%)
33.7
FY20
45.8
FY21
53.0
FY22
64.9
FY23
76.7
FY24
87.3
103.2
120.0
7.2
FY20
10.1
FY21
11.4
FY22
15.4
FY23
20.1
FY24
23.3
28.3
33.0
FY25E FY26E FY27E
Source: Company, MOFSL
FY25E FY26E FY27E
Source: Company, MOFSL
Exhibit 8: Financial summary
Y/E MARCH
Sales
EBITDA
Adj. PAT
EBITDA Margin (%)
Cons. Adj. EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
Ratios
Net D:E
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
EV/EBITDA (x)
Div. Yield (%)
FCF Yield (%)
0.1
18.6
17.3
14.7
145.1
92.8
0.1
0.0
(0.4)
18.5
17.2
10.3
89.8
64.3
0.1
0.4
(0.3)
14.7
14.1
9.0
78.5
57.0
0.1
0.3
(0.4)
18.5
18.5
12.4
53.9
41.5
0.2
1.8
(0.4)
21.1
21.1
9.0
39.4
31.6
0.2
1.4
(0.4)
18.0
17.8
10.2
38.8
27.2
0.3
0.9
(0.4)
18.5
18.4
8.4
31.9
22.2
0.3
1.2
FY20
33.7
7.2
4.6
21.3
30.0
11.3
172
FY21
45.8
10.1
7.4
22.1
48.6
61.7
351
FY22
53.0
11.4
8.4
21.6
55.5
14.3
403
FY23
64.9
15.4
12.3
23.8
80.9
45.7
474
FY24
76.7
20.1
16.8
26.3
110.6
36.8
574
FY25E
87.3
23.3
17.1
26.7
112.5
1.7
675
FY26E
103.2
28.3
20.8
27.5
136.9
21.7
801
(INR b)
FY27E
120.0
33.0
24.4
27.5
160.3
17.1
950
(0.4)
18.3
18.2
7.2
27.2
18.7
0.3
2.5
Source: Company, MOFSL
Exhibit 9: One year forward P/E trades at 34.2x
P/E (x)
Min (x)
58.0
46.0
34.0
22.0
10.0
Avg (x)
+1SD
Max (x)
-1SD
Exhibit 10: One year forward P/B trades at 5.8x
P/B (x)
Min (x)
9.0
Avg (x)
+1SD
Max (x)
-1SD
51.4
37.9
32.3
26.6
18.8
8.3
6.9
5.9
5.0
3.3
34.2
7.5
6.0
4.5
3.0
5.8
Source: Company, MOFSL
Source: Company, MOFSL
28 October 2024
4
 Motilal Oswal Financial Services
Chemicals
ATLP – Financial summary and assumptions (TP: INR9,995) – BUY
Exhibit 11: Expect 13% revenue CAGR over FY24-27
Revenue
INR b
Others
Performance & Other Chemicals
Life Science Chemicals
Exhibit 12: EBITDA expected to expand by 620bp
INR b
22
25
18
14
13
18
19
20
EBITDA
Margin (%)
28
13
FY20
25
12
FY21
35
15
FY22
34
20
FY23
32
14
FY24
38
18
44
49
20
22
FY20
FY21
FY22
FY23
FY24
FY25E FY26E FY27E
Source: Company, MOFSL
FY25E FY26E FY27E
Source: Company, MOFSL
Exhibit 13: Financial summary
Y/E March
Sales
EBITDA
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh.(INR)
Ratios
Net D:E
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA (x)
Div. Yield (%)
FCF Yield (%)
FY20
40.9
9.0
6.7
223
55.2
1,065
0.0
22.5
21.2
16.7
34.2
7.2
25.1
0.5
2.2
FY21
37.3
9.2
6.6
218
(2.3)
1,292
(0.1)
18.5
17.7
8.9
35.0
5.9
24.4
0.3
1.8
FY22
50.8
9.1
6.0
199
(8.8)
1,496
0.0
14.3
13.7
12.2
38.4
5.1
24.9
0.3
(1.6)
FY23
54.3
7.7
5.1
169
-15.0
1,582
-0.0
11.0
10.5
14.5
45.2
4.8
29.1
0.3
-0.7
FY24
47.3
6.4
3.2
103
-38.8
1,736
0.0
6.2
6.2
18.2
73.9
4.4
35.6
0.3
0.7
FY25E
54.3
9.6
5.2
171
65.1
1,881
0.0
9.4
9.1
18.2
44.7
4.1
23.7
0.4
0.0
FY26E
61.6
11.4
6.8
224
31.4
2,070
0.0
11.4
10.6
18.2
34.0
3.7
19.7
0.5
1.5
(INR b)
FY27E
68.5
13.5
8.3
275
22.7
2,301
-0.0
12.6
11.9
18.2
27.7
3.3
16.5
0.7
2.2
Source: Company, MOFSL
Exhibit 14: One year forward P/E trades at 36.6x
P/E (x)
Min (x)
80.0
60.0
40.0
20.0
0.0
Avg (x)
+1SD
Max (x)
-1SD
Exhibit 15: One year forward P/B trades at 3.7x
P/B (x)
Min (x)
8.0
Avg (x)
+1SD
Max (x)
-1SD
69.0
6.0
6.5
4.7
3.7
2.6
2.1
47.6
30.8
14.1
12.6
36.6
4.0
2.0
0.0
3.7
Source: Company, MOFSL
Source: Company, MOFSL
28 October 2024
5
 Motilal Oswal Financial Services
Chemicals
VO – Financial summary and assumptions (TP: INR2,500) – BUY
Exhibit 16: : Expect 21% revenue CAGR over FY24-27
Revenue
INR b
Domestic
Exports
Total
Exhibit 17: EBITDAM to gradually improve during FY25-27
INR b
40
37
27
28
25
25
EBITDA
Margin (%)
14
13
11
8
3
FY20
10
9
FY24
12
17
20
26
26
7
3
FY21
5
FY22
8
FY23
13
13
4.1
FY20
3.5
FY21
4.3
FY22
5.7
FY23
4.7
FY24
6.3
7.5
8.8
FY25E FY26E FY27E
Source: Company, MOFSL
FY25E FY26E FY27E
Source: Company, MOFSL
Exhibit 18: Financial summary
Y/E March
Sales
EBITDA
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh.(INR)
Ratios
Net D:E
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA (x)
Div. Yield (%)
FCF Yield (%)
FY20
10.3
4.1
3.3
32.2
18.2
123.4
(0.0)
28.6
26.9
31.6
58.7
15.3
47.2
0.3
0.5
FY21
9.5
3.5
2.7
26.0
(19.3)
148.9
(0.0)
19.1
18.1
23.1
72.7
12.7
55.6
0.3
0.9
FY22
16.2
4.3
3.5
33.4
28.7
176.3
0.0
20.6
19.5
19.4
56.5
10.7
45.2
0.3
(0.2)
FY23
20.7
5.7
4.2
40.4
20.9
213.5
0.0
20.7
19.6
17.3
46.7
8.9
34.3
0.4
1.1
FY24
19.0
4.7
3.2
31.2
-22.8
237.7
-0.0
13.8
13.1
22.4
60.6
8.0
41.7
0.4
0.6
FY25E
25.2
6.3
4.4
42.7
36.8
270.8
0.1
16.8
15.0
22.4
44.3
7.0
31.6
0.5
-0.9
FY26E
29.2
7.5
5.3
50.9
19.2
310.3
0.1
17.5
15.2
22.4
(INR b)
FY27E
33.7
8.8
6.2
60.2
18.4
357.0
0.0
18.1
16.5
22.4
37.2
31.4
6.1
5.3
26.5
22.3
0.6
0.7
1.6
2.1
Source: Company, MOFSL
Exhibit 19: One year forward P/E trades at 40.7x
P/E (x)
Min (x)
80.0
60.0
40.0
20.0
0.0
Avg (x)
+1SD
Max (x)
-1SD
Exhibit 20: One year forward P/B trades at 6.6x
P/B (x)
Min (x)
12.0
Avg (x)
+1SD
Max (x)
-1SD
62.6
48.5
34.4
20.3
13.8
10.5
8.4
6.5
4.5
2.9
40.7
9.0
6.0
3.0
0.0
6.6
Source: Company, MOFSL
Source: Company, MOFSL
28 October 2024
6
 Motilal Oswal Financial Services
Chemicals
GALSURF – Financial summary and assumptions (TP: INR3,755) – BUY
Exhibit 21: Specialty care share to increase going forward
Revenue INR b
Performance Surfactants
Specialty Products
Total
16
14
22
FY22
16
29
FY23
15
23
FY24
18
25
22
27
27
19
Exhibit 22: EBITDA/kg set to expand in FY25-27
EBITDA (INR b)
25
17
19
20
EBITDA/kg
23
21
10
16
FY20
10
18
FY21
30
3.7
4.5
4.0
5.7
4.6
5.5
6.3
7.2
FY25E FY26E FY27E
Source: Company, MOFSL
FY20
FY21
FY22
FY23
FY24
FY25E FY26E FY27E
Source: Company, MOFSL
Exhibit 23: Financial summary
Y/E March
Sales
EBITDA
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh.(INR)
Ratios
Net D:E
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA (x)
Div. Yield (%)
FCF Yield (%)
FY20
26.0
3.7
2.3
65.0
20.6
301.2
0.2
23.7
19.1
31.5
43.9
9.5
28.1
0.6
1.7
FY21
27.8
4.5
3.0
85.2
31.1
367.1
0.1
25.5
21.1
21.1
33.5
7.8
22.8
0.6
2.5
FY22
36.9
4.0
2.6
74.1
(13.0)
444.1
0.2
18.3
15.5
24.3
38.5
6.4
26.0
0.6
(1.5)
FY23
44.6
5.7
3.8
107.5
45.0
531.0
0.0
22.0
19.2
20.5
26.5
5.4
17.8
0.8
4.2
FY24
37.9
4.6
3.0
85.0
-20.9
614.7
-0.0
14.8
14.1
25.9
33.5
4.6
21.6
0.8
3.6
FY25E
43.2
5.5
3.5
97.8
15.0
687.2
-0.1
15.0
14.9
25.9
29.2
4.2
18.1
0.9
2.2
FY26E
49.5
6.3
4.1
115.1
17.8
772.6
-0.1
15.8
15.8
25.9
(INR b)
FY27E
56.9
7.2
4.8
135.2
17.5
872.8
-0.2
16.4
16.6
25.9
24.8
21.1
3.7
3.3
15.5
13.2
1.0
1.2
2.7
3.2
Source: Company, MOFSL
Exhibit 24: One year forward P/E trades at 26.8x
P/E (x)
Min (x)
42
34
26
18
10
Avg (x)
+1SD
Max (x)
-1SD
Exhibit 25: One year forward P/B trades at 3.9x
P/B (x)
Min (x)
7.0
Avg (x)
+1SD
Max (x)
-1SD
37.9
31.6
25.6
13.8
19.6
6.7
5.6
4.6
3.7
3.2
26.8
6.0
5.0
4.0
3.0
3.9
Source: Company, MOFSL
Source: Company, MOFSL
Investment in securities market are subject to market risks. Read all the related documents carefully before investing
28 October 2024
7
 Motilal Oswal Financial Services
Chemicals
NOTES
28 October 2024
8
 Motilal Oswal Financial Services
Chemicals
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
> - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30 days take
appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures:
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the Regulations, is engaged in
the business of providing Stock broking services, Depository participant services & distribution of various financial products. MOFSL is a listed public company, the details in respect of which are available on
www.motilaloswal.com.
MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National
Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for
its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of
Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products. Details of
associate entities of Motilal Oswal Financial Services Ltd. are available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
MOFSL, it’s associates, Research Analyst or their relatives may have any financial interest in the subject company. MOFSL and/or its associates and/or Research Analyst or their relatives may have actual
beneficial ownership of 1% or more securities in the subject company at the end of the month immediately preceding the date of publication of the Research Report or date of the public appearance.
MOFSL
and its associate company(ies), their directors and Research Analyst and their relatives may have any other potential conflict of interests at the time of publication of the research report or at the time of
public appearance, however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely
independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
In the past 12 months, MOFSL or any of its associates may have:
a)
received any compensation/other benefits from the subject company of this report
b)
managed or co-managed public offering of securities from subject company of this research report,
c)
received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
d)
received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.
MOFSL and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.
Subject Company may have been a client of MOFSL or its associates during twelve months preceding the date of distribution of the research report.
Research Analyst may have served as director/officer/employee in the subject company.
MOFSL and research analyst may engage in market making activity for the subject company.
MOFSL and its associate company(ies), and Research Analyst and their relatives from time to time may have:
a) a long or short position in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein.
(b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act
as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the
same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates
of MOFSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider demat accounts
which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from clients which are not considered in above disclosures.
To enhance transparency, MOFSL has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report. MOFSL
and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should be aware that MOFSL may have
a potential conflict of interest that may affect the objectivity of this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any
way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOFSL. The report is based on the facts, figures
and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from publicly available media or other sources
believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All
such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or
subscribe for securities or other financial instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not
treat recipients as customers by virtue of their receiving this report.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is,
or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental research and Technical
Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOFSL research activity and therefore it can
have an independent view with regards to subject company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary
to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures
Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Financial Services
Limited (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Hong Kong. This report is intended for
distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is only available to professional investor and will be
engaged only with professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from
registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
MOTILAL Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the
United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and
under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOFSL, including the products and
services described herein are not available to or intended for U.S. persons. This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act
and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any
investment or investment activity to which this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption
from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission
28 October 2024
9
 Motilal Oswal Financial Services
Chemicals
("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agr eement with a U.S. registered broker-dealer, Motilal Oswal Securities
International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer,
MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research
analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co. Reg. NO. 201129401Z) which is a holder of a capital markets services license and an
exempt financial adviser in Singapore. Persons in Singapore should contact MOCMSPL in respect of any matter arising from, or in connection with this report/publication/communication. This report is
distributed solely to persons who qualify as “Institutional Investors”, of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act of
Singapore .Accordingly, if a Singapore person is not, or ceases to be, such an investor, they must immediately discontinue any use of this Report and inform MOCMSPL .
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to
any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an
offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation
that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make
their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment
by any recipient. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in
this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not
be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial risk and are not
suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this document. The Disclosures
of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. This information is subject
to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its
associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document.
They may perform or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as
a separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already
available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed
therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied, in whole or
in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction,
where such distribution, publication, availability or use would be contrary to law, regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities
described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to
observe such restriction. Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost
revenue or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees
from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOFSL or any
of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person accessing this information due to any errors and delays.
This report is meant for the clients of Motilal Oswal only.
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 - 71934200 / 71934263; www.motilaloswal.com.
Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 71881000. Details of Compliance Officer: Neeraj Agarwal,
Email Id: na@motilaloswal.com, Contact No.:022-40548085.
Grievance Redressal Cell:
Contact Person
Ms. Hemangi Date
Ms. Kumud Upadhyay
Mr. Ajay Menon
Contact No.
022 40548000 / 022 67490600
022 40548082
022 40548083
Email ID
query@motilaloswal.com
servicehead@motilaloswal.com
am@motilaloswal.com
Registration details of group entities.: Motilal Oswal Financial Services Ltd. (MOFSL): INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412 . AMFI:
ARN .: 146822. IRDA Corporate Agent – CA0579. Motilal Oswal Financial Services Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Insurance, Bond, NCDs and IPO products.
Customer having any query/feedback/ clarification may write to query@motilaloswal.com. In case of grievances for any of the services rendered by Motilal Oswal Financial Services Limited (MOFSL) write to
grievances@motilaloswal.com, for DP to dpgrievances@motilaloswal.com.
28 October 2024
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