Thread by @ValueEducator

What resources I use to understand chemical industry ? 🧪🧪

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Understanding chemical industry can be technical and may take some time to sink in.

I use following resources to understand different businesses

1. Annual report of last 10 years

2. All the available concalls - This is must to understand product details. Competitive structure in industry, Capex plan,Complexity of manufacturing, Import substitution, Execution Capabilities.

If I am researching aarti industries
then

Along with aarti industries concalls I will read competitiors concalls also ( Seya Industries - almost bankrupt, Bodal chemicals - Entering into benzene chain )

This gives good understanding of products and value chains and what capex competitiors are planning.

3. Next I check EC - Environment clearance fillings to understand capex plans, product details and most importantly exact value chains and raw material requirements.

4. Then I read magzines like chemical weekly, chemical industry digest, perfumers & flavourist etc. This gives new technologies updates on industry. Price updates on various chemicals.

5. Over the period of time I have built some connections on group to get real time and noise free info about what's actually going on at plant level. Sometimes concalls may not give you true picture. (Depends on management)

6. Learning about chemical chains from youtube videos and friends who have education from chemical background.

7. Connecting all these details finally with financials like EBITDA margins, ROCE,capex details and then keep tracking every upcoming qtr concalls.

8. Currently I am tracking more than 35 chemical companies. I have added Q3 2022 highlights of them which you can check here
Link : valueeducator.com/q3-concall-hig…