How to Find Future Multibagger Opportunities in India's Specialty Chemicals Industry?
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- Опубликовано: 6 июл 2024
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The Indian specialty chemical sector is growing fast and is projected to $300 billion by 2040. In this video, we’ll first take a look at the macro picture i.e. understanding specialty chemicals, the China+1 strategy and India's advantages in this domain .. and in part 2 of the video, we’ll look at the key evaluation metrics for any specialty chemical businesses which includes end-user applications, entry barriers, growth capital expenditure, R&D efforts, and financial metrics
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👉 Video Chapters:
00:00 $40 Billion Industry
01:21 What are Specialty Chemicals?
03:32 China+1 Strategy
04:43 India Opportunity in Specialty Chemicals
06:13 1. End User Application
09:48 2. Entry Barriers
11:37 3. Capital Expenditure
13:08 4. R&D Expenditure
14:49 5. Financial Metrics
17:23 Shankar's Viewpoint
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👉 Additional Reading material:
‣ Research report by KR Choksey: images.assettype.com/bloomber...
‣ Report by KPMG: assets.kpmg.com/content/dam/k...
‣ Research Report on Specialty Chemicals by CRISIL: prasolchem.com/wp-content/upl...
‣ Ambit Capital Research on Specialty Chemicals: ambit.co/public/thought_leade...
‣ CNBC TV18 on Specialty Chemicals: • Investing Masterclass ...
‣ Talk by Ashish Mody: • Speciality Chemical Se...
‣ Dr. Vijay Malik on Chemical Companies (article): www.drvijaymalik.com/chemical...
‣ Masterclass on Specialty Chemical Sector on Accidental Investor: • Chemical Sector: Pessi...
#specialtychemicals #chemicalindustry #navinfluorine #deepaknitrite #balajiamines #srf #alkylamines #vinatiorganics #cleanscience #laxmiorganic #piindustries #bayercropscience #rallisindia #aartiindustries #rossaribiotech
Disclaimer: I am not a SEBI registered investment advisor or research analyst. I am not registered with PFRDA or IRDA either. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented. Some of the links I have posted in the video, the description, the comments and other related resources might be affiliate links
Considerable points--
1) End industry application ( Dye and pigment industry have lower margin whereas fluorine, beauty care and beverage company may have higher margin)
2) High entry barriers, so slight change of price does not compel end industry to switch to another company as it takes rigorous testing for selecting a chemical partner
3) Huge capex and how it is done (either be done by taking debt or by measures of internal accrual; as taking more debt may be somewhat danger)
4) R&D spending tracking, specially how ( if they generate more compound out of single chemistry or they become thin by spreading themselves into different chemistry)
5) Financial ratio like sales and profit growth more than 18%, operating profit margin which should be somewhat stable and not declining quarterly (which may be an indication that the product that is sold has been commiditized and not speciality anymore) and at last debt along with debt equity ratio
Please tell us top 5 chemical Stocks for long term Investers. Request
Eagerly waiting for the second part of this one Sir.!
I belong to this sector in some way so find this exciting opportunity for India
Your hardwork Is Very Appreciated Sir. Irrespective of views Keep Making The content 🫡🫡
Thank you
Agro chemicals can i invest
Why this guy didn't have a MILLION subs already !?
Such an extraordinary channel for stock market learning...
Thank you very much sir 🙏
I appreciate that! Most welcome
My pleasure sir. I am a CA student & I learn many concerts from you. I appreciate you.
Excellent video, clearly showing how much research was done in making the presentation.
Thank you very much!
Another gem of a video. Thanks! Appreciate the timing as well. I have been studying the sector expecting a turnaround.
Glad it was helpful!
Great analysis man...Do we have any magazine to study indian chemical sector before investing in the stock
Another MasterClass sir. Looking forward to follow up video on this.
Many thanks.
Many thanks!
Hi Shankar , really appreciate your work and it is helping a lot to develop a perspective
Glad to hear that, Paritosh ji. I'm happy you found this informative. Personally, these research videos help me in improving my own framework and I can now apply what is learnt in one sector on another. For instance, the specialty chemicals space on a broad frame is going the way of IT and pharma.
This is a well thought out and well presented video....pl.keep us inspiring.
Thank you very much 🙌
Very clear well researched content.. among top 3 channels on finance in india.. very underrated channel, deserves over 1M subs
Glad you like my work 🙌
Very Informative Video, looking forward to the follow up video. Thank u
Glad it was helpful!
Amazing brilliant video! Please do more such videos on different sectors. Thanks!
Most welcome
Looking forward to your follow up video. Great video. Thanks a lot.
Thanks for watching!
Excellent analysis. Appreciate your efforts. Thank-you.
My pleasure! 🙌 Glad you found it informative and relevant
Thank you for your detailed video on Chemical sector. It is helpful to understand the business.
You are most welcome. I'm happy you found it useful and informative
Great analysis. Thanks! Look forward to the follow-up video
Thanks for watching!
Brilliant piece of information. Kudos!!!
Thx 🙌 Glad it was helpful!
Amazing video. Great efforts!
Thanks a lot!
Excellent video thank you sir.
Most welcome. Glad you liked it
Wow it's very nice details provided by you. Thanks you sir
Most welcome Prakash ji. I'm glad you liked it
Thank you for another amazing video. Very valuable information!!!
You are so welcome, Ali! Very happy you are finding good value from my work 🙌
Looking forward to the follow up video
Really thorough work in analyzing a sector from all angles !!
Glad you liked it!
Sir is UPL a pure agri commodity chemical company or any speciality property have in it..
Good and great effort as usual. Keep rocking
Thanks a lot 🙌
Very useful educational video on the Sp. chemical sector, Great presentation. Thank you❤
Most welcome. Glad it was helpful! 🙌
Useful info 👍🏻 thanks Sir
So nice of you. Most welcome
Very well researched video. Thank you.
Glad you enjoyed it!
Brilliantly Researched Video ! 👌🏻👏🏻 HSCL is my favourite
Thank you very much!
Outstanding analysis of the speciality industry. Learnt a lot . Many thanks.
So nice of you. Glad you liked it!
Thank you very much for this. This is real hard work.
Thank you very much Kowshik ji. Yes, this was quite a vast field and I had to break this into parts (I'm working on a company specific video aswell)
Great content and excellent presentation skills. Thank you for this informative video.
You're very welcome! I'm happy you found it relevant & informative
Awesome
I appreciate your hard work Shankar Ji..
I am waiting for Evergreen Sector Complete analysis i.e FMCG
Please do it waiting from long time...
Thanks
Thanks for the appreciation and suggestion
Helpfull to understand this complex and vast area
Glad you found it useful
Nice breakdown. Looking forward to break downs in individual companies.
Thanks
Hi shankar, awesome you are! Thank you
Thank you very much!
Wow , first time watched your channel Highly impressed . Thank you very much . Will watch all your videos now in due course❤
Welcome aboard!
Extensive research and very fundamental information
Glad you found it useful. Thanks!
Superb analysis sir. Thank you
So nice of you. Thank you!
Excellent analysis 👏
Glad you liked it. Thank you 🙌
Thank you for sharing your knowledge sir🎉👍
My pleasure. Glad you liked it
Always love your sectorial videos
Great to hear that! Thanks
Sir your contents are the most reliable and well prepared. I learned a lot and developed good sense from your contents. Thanks
So nice of you. I'm happy to play a small part in your financial journey
Excellent analysis. I am invested into this sector and this video has given me a fair idea to restructure the portfolio. Thanks for your efforts.
Glad to hear. I'm happy you found it helpful!
Thank you for the detailed analysis!
Glad it was helpful!
Enjoyed this video, it contributed to my comprehension of this industry which is an integral part of modern living. Bringing out this video at this time when the shares of most of the companies are available at a discount is opportune . Looking forward to part two of this video eagerly! Thanks once again!
Most welcome, glad you found the video timely and informative
first time watching your video. Thanks for sharing fruitful information. Amazing
Thanks. Glad you liked it! Do considering subscribing to the channel and telling your friends about it
Thank you very much 🙏
You're most welcome
Hello Mr Shankar
I was looking to invest in a couple of speciality Chem companies and your research has provided much needed inputs. Thanks a million and keep up the gud work.❤
Most welcome. I am glad you found the content and research informative. Wishing you the best!
Excellent content!
Much appreciated!
Very informative sir❤
Glad you found it useful
Amazing insights sir!🙌👏
Thank you
Thank you sir for your excellent analysis of speciality chemicals growth and future. The impact of which in various sectors of industries very useful information to the investors of stocks.
So nice of you. You are most welcome & I'm glad you found this video relevant and useful 🙌
very gud session,we need more videos like this
Thanks, glad you liked it
Very informative ❤
Glad it was helpful!
Excellent one. Please make more videos in future for each sub specialization within the chemical sector. This is one sector difficult to understand the fundamentals and dynamics of for a common person.
Thanks for the suggestion
@@shankarnath I am invested in Chemcon speciality chemicals. Not asking for stock price related opinion but would you check the segment fundamentals / potential and share your opinion please
Most knowledgeable person
Glad you liked it!
Ver informative, I really appreciate your efforts, sir.
Sir, any reason for not including UPL and Coromandel in the discussion under Chemical Companies?
Thank you
Excellent analysis
Thank you!
Thank you sir for very concise explanation
Most welcome. Glad you liked it
Sir you can be the biggest youtube channel in financial education
Thank you very much for your vote of confidence 🙌
Thank you
Welcome!
Superb content!!
Thank you 🙌
All of your efforts from selection of topic to background research to presentation immensely help people like us in grasping idea about investing. Deep gratitude for that. What about making a video about infrastructure sector?
Most welcome .. so nice of you. And thank you for the suggestion
Outstanding content❤
Thank you very much
Thanks for the great content with solid set of data/research, Shankar sir.. Appreciating your hard work/dedication.. We learnt the Chemical Industries basics very well, thanks to you
Thank you very much
Great video Sir.
Glad you liked it!
Great video. Specialty chemical industry is so vast, complex and diversified, that it becomes very difficult to focus on select few, hence i was very confused and didn't want to miss on any, so i ivested in pretty much all the good ones with double digit growth. Maybe, your coming relevant video will guideme to cut down and narrow down.thanks.
Glad this is helpful
Awesome
Thank you!
very useful
Glad to hear that
Ur Presensetation superb
Thanks
Wow. Great Sir . I was struggling to find this kind of information. Every one was claiming they are speciality chemicals. also learned sub categories and type of it . I learned by investing and waiting. then realised by margins they are commodities. Also. could not participate in some real speciality. would you DM with link to ppt. ❤
Glad you enjoyed it! I don't have a PPT for this video
@@shankarnath thanks for reply. Have a great day.
Great 🎉
Thanks
Well explained in a layman's language. Thank you
You are welcome
Thankyou sir
Most welcome!
Awesome video
Thanks!
Very comprehensive coverage.
Glad you liked it
@@shankarnath However just a piece of advice, you could get into the cost drivers in the segment, thats important given the current inflationary situation. worldwide. I believe most of the raw materials for these industries , are dependent on imports , hence depends on large extent to upcoming 2024 elections and also the current FTAs.
Good educatinal video
Thank you!
U r the best...
Thanks for the vote of confidence
Sir what about tata chemicals
Thanks shankar for the wonderful, tasty "special tea"
Most welcome
Sir pls continue this type of sector analysis
Thanks for the suggestion
👌👌 video.
Thank you so much
A very detailed sectoral analysis which is as usual superb, sir. Now, if you make a comparative video between jyoti resin and pidilite, it will be great as I think pidilite has become so much overpriced.
Thanks for the suggestion
Wonderful insight.
👍👍👍🙏🙏🙏
Glad you enjoyed it!
Hi Shankar, I am a religious follower of your channel. One request can you please make one video on protential impact of rising AI on the stock market, managed funds and also one informative video on what happened in Japan stock market 30 years ago and fears of that happening in other markets specially in India.
Thanks for your continued support and for the suggestions
Hearing and reading lot about US Commercial Real Estate issue which is likely in 2025. Its said that there could be a worst crash in Stock Market. Is this news / theory is true. Since US is a mother market for India, will it heavily impact on Indian Equity Investment Market. Generally, markets recover over 1-2 years, can we assume the same for 2025. I have 50 : 50 asset allocation between Equity and Fixed Income and requirements are 15 Yrs away, kindly suggest strategy to get protected from possible Big Crash in 2025. Concern raises since Mr Warren Buffet had also spoken about this. Should equity portfolio be fully liquidated and reinvested after 2025. Kindly suggest
Pls watch my video on Recession Proof portfolio for some clues on the same. Link: ruclips.net/video/e2qHOOPTyaA/видео.html
Bro knows his audience.
We have been told to be sticking to our own 'circle of competence'.
But if at all, we know even this much coupled with our basic finance knowledge, we can gain a few bounties in a short run (at-least).
Please accept our honest gratitude for this hard work put together and made available for us for free..
As usual, I would say it again to be a 'paid level' content.
Thank you!
Thanks boss
Welcome
Hi Shankar,
Trust this message finds you in good health. As usual you are superb in all your videos. I have been watching your videos since the time you have started creating. I have learnt a lot from them. I have small query / dilemma, looking for some help from you on it.
Following your videos I have created the screener for magic formula, coffee can, peter lynch, canslim and etc.
Now that I have a list of businesses how do i shortlist around 10 to 15 from each individual screener.
My idea is to do a basket investment. Recently, i shortlisted 8 stocks in logistics sectors and applied quite a few parameters I have learnt from you and then put equal amount of money in all.
So how do i go about say in peter lynch method. For magic, I have ranked them so it has some basis to select top 10 or 15. how do i do it for other methods?
Hello Subhrajit ji, thanks for your kind appreciation and I'm glad my work is helping you with your investing decisions. You raise a very good point:
1. Personally, I am not a big fan of using a screener to make investing decisions. A screener's job is to screen/filter and not pick stocks, so I'll request you to go deeper into every company
2. I'm also not a fan of picking a few stocks from every strategy assuming that this will make a superstar portfolio. It's a bit like saying, there are many sports I like so I'll learn backhand in tennis, bowling in cricket and goal-keeping in football and this should make me a great athlete. Instead I'll prefer specializing in one sport. In an investing context and in my opinion, the focus should be on picking the strategy that resonates more and has a valuation comfort with it. For instance, you might like monopolies then use 10 bagger, for small cap growth use Peter Lynch, for large & mid cap value it's magic formula, for passive diversified use momentum+value etc. The idea is to pick the strategy & play first .. and then the stocks.
Hope this helps.
Hi@@shankarnath thanks for your quick revert. Actually I was working on your suggestions and it is quite helpful but two things i have reservations about are (1) developing a bias towards stocks whose businesses you know well e.g. zomato or tata motors and (2) how do i include a little bit of technical analysis in my stock picking. By the way, I went against your advice / suggestion and picked top 10 ranked stocks from coffee can, peter lynch and magic and put 20K each. I have ranked based on RoC and Earnings Yield. I have promised myself that I will hold them for 6 months and I will let you know the results, although you have mentioned that Pter Lynch method asks you to evaluate every quarter. This would be really good fun.
Hi Shankar. Have you too notice that big multibaggers 100x in 10 years types stock companies many of them are from Chemical sector in India. Whereas in the US those disproportionate returns have been in tech sector. Why is it so? Also do you think tech or EMS companies being that type of companies for 2020s decade for outsize returns?
Hi. I believe every economy goes through decadal shifts. In the US, it wasn't always tech. For many years, companies like GE (manufacturing), Walmart (retail), American Express (banking) have had their times before the technology companies cut through. The same is the case with India and from having zero IT companies when the Nifty was first formed in 1995, we've seen decadal moves for IT, pharma, private banking and now chemical companies.
Thank you for your inputs Shankar @@shankarnath
I would highly appreciate if you could do analysis on srf, deepak nitrite, and clean science as I have more weightage in mentioned stocks and planned to add more in clean science
Thanks for the suggestion
Sir ji, pls make on 4-5 best MBagger stocks in speciality chem Universe.
Thanks for the suggestion
Sir after six months what would u add to this video about changing chemical sector landscape. Are they undervalued ?
Sorry, I haven't analysed the sector since then
@@shankarnath Thanks for your response. The video is absolutely brilliant for guiding sector analysis. Thanks
Can you explain FMCG Sector..... like this type of analysis
Thanks for the suggestion
Sir please do one on Pharmacy industry
Thanks for the suggestion
Please cover TATVA CHINTAN PHARMA and ARCHEAN CHEMICALS ❤
Thanks for the suggestion
Both are capex heavy
Sir,pl make a video on paper industry also
Thanks for the suggestion