Why should you invest in this smallcase?

  • Speciality chemicals are specific items that are used in low quantities for the production of high-value goods in variety of industries viz, textiles, Tyre, adhesives, pharmaceuticals, agro-chemicals.
  • Indian middle class is leading a dramatic change in demand for items like food, clothing and transportation, which is primarily driving demand for speciality chemicals
  • Production of speciality chemicals allows customer stickiness and leads to high revenue predictability. 
  • Since price of speciality chemicals is determined through negotiations, increase in raw material costs can also be passed on to protect margins
  • The downturn in China's chemicals and specialty chemicals market in the recent years, has come as a boon for the Indian chemicals and specialty chemicals industry.
  • China's specialty chemicals market has seen a downturn in recent years, for more reasons than one, most prominent being the introduction of stringent environmental norms, which has led to the shutdown of several chemical plants.
  • Over the last five years, the labour cost in China has more than doubled compared with India, rendering Chinese manufacturers' uncompetitive vis-à-vis India in labour cost.
  • This smallcase comprises companies manufacturing speciality chemicals that are used in a wide range of industries like automobiles, pharma, textiles, food processing, agro chemicals, etc


Know how this smallcase was created

Factsheet 

Download key points about this smallcase

Created by Axis Securities Ltd (ASL) Research

Past Performance vs 

1m3m6m1y2y3ymaxSIP
Value of ₹ 100 invested once on
inception of this smallcase

Sep 11, 2015

would be
Indian Speciality Chemicals
₹ 423.08
Equity Mid & Small Cap
₹ 139.30
20162017201820192020100150200250300350400

Launch

Past performance doesn't guarantee future returns & is inclusive of all rebalances. Download chart