Speciality chemical stocks in a sweet spot. Here are 3 top picks

Citing supply chain disruptions and that uncertainty in China will support Indian companies, brokerage firm Anand Rathi expects the Indian chemicals sector to be in a sweet spot and has buy ratings on three stocks - Aarti Industries, Atul Limited and Sudarshan Chemicals.

These companies are positive on the long-term structural growth of the Indian chemicals sector on the back of China plus one strategy, focus on reducing chemical imports, R&D capabilities, and its leading and strong position with favourable government policies, the brokerage report said.

Aarti Industries
The brokerage has a buy call on Aarti Industries with a target price of Rs 960. The stock has an upside potential of 22 per cent.


Atul Limited
Anand Rathi has a buy call on the stock with a target of Rs 10,145, an upside potential of 15 per cent.

Sudarshan Chemicals
The brokerage has a buy rating on Sudarshan Chemicals with a target price of Rs 585, an upside of 41 per cent.

Besides the 3 stocks, the brokerage has hold ratings on Navin Fluorine, Vinati Organics, Galaxy Surfactants, Nocil and Neogen.

According to the report, Navin Fluorine intends to deepen its R&D capabilities, and is working on a new product around the fluoropyridine platform. The company expects to emerge as the first such producer in India with multi-year revenue possibilities, while Vinati Organics is on track to expand its niche range of products, enabling import substitution.