#GujAlkalies
Gujarat Alkalies & Chemicals seems a good cyclical buy at CMP from risk-reward perspective.
Company is one of the largest producer of caustic soda in India.
The entire Chlor-alkali sector has underperformed in last two years, however now the cycle has turned. (1/n)
Gujarat Alkalies & Chemicals seems a good cyclical buy at CMP from risk-reward perspective.
Company is one of the largest producer of caustic soda in India.
The entire Chlor-alkali sector has underperformed in last two years, however now the cycle has turned. (1/n)
Caustic soda demand is mainly driven by manufacturing sector, aluminium being the largest consumer industry of caustic soda.
Other major consumer industry of caustic soda is Textile, Chemicals, paper & Pulp, Soap & Detergent, etc. (2/n)
Other major consumer industry of caustic soda is Textile, Chemicals, paper & Pulp, Soap & Detergent, etc. (2/n)
Demand for caustic soda has increased significantly since the start of this month and prices have also moved upward.
Aluminium industry was already doing very well and now the textile is also going to perform strong.
All this bodes well for the demand of caustic soda. (3/n)
Aluminium industry was already doing very well and now the textile is also going to perform strong.
All this bodes well for the demand of caustic soda. (3/n)
An anti-dumping duty investigation is also going on on the import of caustic soda from Japan, Iran, Qatar and Oman.
dgtr.gov.in/anti-dumping-c…
Japan has heavily dumped caustic soda in India in the past few years. (4/n)
dgtr.gov.in/anti-dumping-c…
Japan has heavily dumped caustic soda in India in the past few years. (4/n)
Also, the company had recently done a JV with Nalco for putting up additional capacity of caustic soda and it is supposed to be operational by this year. The company has done capex for other downstream products as well (5/n)
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