Motilal Oswal Assigns Buy On 3 Specialty Chemicals Stocks -1 Small Cap & 2 Mid Cap Stocks

Leading brokerage firm Motilal Oswal Financial Services has recently published a report on the Specialty Chemicals sector, listing 3 stocks from the sector with a "Buy" rating for high gains. These three stocks include Vinati Organics Ltd., Galaxy Surfactants Ltd., and NOCIL Ltd.

Among these three stocks, two are midcap stocks and one is a small-cap stock. According to the given target price, the stocks are likely to give a decent return of up to 23%.

1. Vinati Organics Ltd. (VO)

The brokerage assigns Rs 2,245 target price on the VO stock, claiming a potential upside of up to 23% from its current level. The stock ended 0.50% higher at Rs. 1,838.95 apiece on NSE.

It gave 1.86% positive return in 1 week. It has fallen 5.93% in 1 month. It gave 5.14% negative return in 1 year. It gave 88.8% positive return in 3 years, and 271.97% in 5 years, respectively.

Its 52 week high is Rs. 2,377 and 52 week low is Rs. 1,692.55, respectively. It is a midcap stock with a market capitalisation of Rs. 18,901.11 crore.

According to Motilal Oswal, Veeral Organics Pvt. Ltd. (a wholly owned subsidiary of VO) is set to commence productions of MEHQ, Guaiacol, and Iso Amylene by end-FY24, which should propel VO into the next leg of its growth story. Veeral Additives has commenced the commercial supply of AOs that should contribute to revenue from 1QFY24. Management expects to complete the amalgamation of VAL with VO by Jun'23.

2. Galaxy Surfactants Ltd. (GALSURF)

The brokerage has placed a Buy on GALSURF stock with Rs. 3,345 apiece target price. According to the brokerage, the stock is likely to give a decent return of up to 17%, if purchased at the current market price. The stock's last traded share price is Rs. 2,880.50 apiece, up 2.03% from its previous close.

Stock jumped 10.9% in the past 1 week, 10.8% in the past 1 month and 23.91% in the past 3 months, respectively. It declined 0.9% in the past 1 year. While, it gave a decent return of 113.915 in 3 years and 126.48% in 5 years, respectively.

Its 52 week low is Rs.2,221.60, and 52 week high is Rs. 3,447.55. GALSURF is a midcap stock with a market capitalisation of Rs. 10,212.74 crore.

According to Motilal Oswal, The continued focus on R&D (with an annual expenditure of INR400-500m) and increased wallet share from its existing customers are likely to drive volume growth for the company. Although management plans for expansion of products across the board, its focus would mainly on achieving an overall volume growth of 6-8% in FY24.

3. NOCIL Ltd.

The brokerage assigns Buy on the stock of NOCIL. It sees a potential upside of up to 16% in the stock from its current market price with the assigned target price of Rs. 155 apiece to the stock. The stock last traded at Rs. 220.25 apiece, up 0.46% from its previous close.

The stock surged 0.2%% in the last 1 week and declined 4.78% in the last 1 month. It declined 9.49% in the last 1 year. It has given 155.21% positive return in the past 3 years and 24.01% positive return in the past 5 years, respectively.

The stock traded 52 week high at Rs. 294.90 and 52 week low at Rs. 199.10, respectively. It is a small-cap stock having a market capitalisation of Rs. 3,670.31 crore.

According to Motilal Oswal, Management guided for debottlenecking of its existing units by FY24, resulting in a potential capacity expansion of 5-10%. However, there are no plans for new capacities in the next few years. The remaining capex would be allocated towards maintenance activities. No specific timelines have been provided to achieve the optimal capacity utilization of the expanded capacity of 110ktpa. Management expects that 'Europe+1' strategy could play out over the medium term, with no imminent capacity constraints in the near future.

Disclaimer - The above stocks have been picked from the Motilal Oswal Financial Services' Specialty Chemicals report. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.