Atul Ltd is the best bet among the chemical stocks: Avinnash Gorakssakar

In a chat with ET Now, Avinnash Gorakssakar, Head of Research, Mintdirect.com, shares his views on the chemical stocks, Excerpts:

ET Now: Entire chemical basket is doing well and the management are upbeat, do you like any of the companies after the run up that we have seen already?

Avinnash Gorakssakar: From the chemical space a larger player like Atul could definitely do well, Vinati Organics is also one company which has actually delivered good on the earnings side.

One factor which one needs to take into account is there is some seasonality in this business and more importantly margins in the last couple of quarters were not all that great. But going forward hopefully once the rupee stabilises and if the domestic customers also help these companies to ramp up the volumes,I would say that Atul definitely has a better potential because they are the market leaders in certain categories and after a long time this stock has actually given a good upside.

More importantly in terms of the balance sheet side, in terms of the kind of leverage they have I would say that they would possibly be the best positioned player in this space.