4 Chemical Stocks To Buy, Hold, Sell: Top Brokerages Stocks Recommendations

3 leading brokerages have given buy, hold, and sell call to 4 chemical sector stocks. Motilal Oswal has assigned neutral call to Alkyl Amines Chemicals Ltd. ICICI Direct has recommended buy, hold call to 2 chemical stocks namely Sumitomo Chemicals and Sudarshan Chemical Industries Ltd. Meanwhile, HDFC Securities has assigned sell call to Deepak Nitrite. Check details below:

1. Hold Alkyl Amines Chemicals Ltd

Last trading price of the stock is Rs 2601.45 apiece. Its 52-week high is Rs 3,450.00 apiece and 52-week low is Rs 2506.40 apiece, respectively. The company has a market capitalisation of Rs 13,293.54 crore.

The stock gave a return of 323% in last 3-years and 948% in last 5-years. The small cap Chemicals stock was incorporated in 1979.

Motilal Oswal has assigned hold rating to Alkyl Amines Chemicals with a target price of Rs 2950 apiece indicating an upside of 13%.

According to Motilal Oswal, "We reiterate our Neutral rating on the stock, and value it at 40x Dec'24E EPS to arrive at our TP of INR2,950."

2. Buy Sumitomo Chemicals

ICICI Direct has assigned buy call to Sumitomo Chemicals with a target price of Rs 525 apiece. Last trading price of the small cap stock is Rs 448.10 apiece with 52-week high at Rs 540.65 apiece and 52-week low at Rs 341.20 apiece, respectively.

The company has a market capitalisation of Rs 22,366.72 crore. If you buy Sumitomo Chemicals shares now, you can get potential return of 21%.
Sumitomo gave a return of 9% in last 1-year and 66% in last 3-years.

According to ICICI Direct, "We retain BUY rating on the back of 1) better growth outlook from outsourcing opportunity of SCC Japan, 2) increase in farmer's income and the company's ability to pass on the escalation cost, 3) new molecules to aid revenue growth, going ahead."

3. Hold Sudarshan Chemical Industries

ICICI Direct has recommended hold rating to Sudarshan Chemical with a target price of Rs with a target price of Rs 370 apiece. Current market price of the stock is Rs 383.35 apiece with an intraday gain of 6%. The stock's 52-week high is Rs 612.00 apiece and 52-week low is Rs 345.00 apiece, respectively.

The company has a market capitalisation of Rs 2,653.83 crore.

The mid cap stock declined 37% in last 1-year and 18% in last 3-years.

According to ICICI Direct, We maintain HOLD as we believe a margin recovery is key besides sustained revenues traction. We value Sudarshan Chemicals at 15x P/E FY25E EPS to arrive at a revised target price of Rs 370/share (earlier Rs 383/share)."

 

 

 

4. Sell Deepak Nitrite

HDFC Securities has maintained sell call to Deepak Nitrite with a target price of Rs 1583 apiece. Current market price of the stock is Rs 1784.65 apiece. The mid cap stock has a market capitalisation of Rs 24,341.38 crore.

The stock gave a return of 334% in last 3-years and 562% in last 5-years. In last 1-year, the stock fell 22%.

According to HDFC Securities, "We maintain SELL on Deepak Nitrite (DNL), with a price target of INR 1,583 (WACC 12%, terminal growth 4%). The stock is currently trading at 19x FY24E EPS. We believe growth in DPL is capped as the phenol plant is already running at full capacity and margins in advanced intermediates to remain under pressure owing to high input cost."

Disclaimer

The stocks have been picked from the brokerage report of ICICI Direct, HDFC Securities, and Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage Houses are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.