ADVERTISEMENT

Alpha Ideas 20-20 | Why Rohit Balakrishnan Likes Dharamsi Morarji Chemical Company

Expansion into newer products and turnaround of subsidiary will aid margins of Dharamsi Morarji, says Rohit Balakrishnan.



A worker tests a liquid chemical inside of a laboratory at a research and development facility in Cambridge, Massachusetts, U.S. (Photographer: Scott Eisen/Bloomberg)
A worker tests a liquid chemical inside of a laboratory at a research and development facility in Cambridge, Massachusetts, U.S. (Photographer: Scott Eisen/Bloomberg)

Vrddhi Capital Investment Advisors’ Rohit Balakrishnan thinks little-known Dharamsi Morarji Chemical Company Ltd. is “special”.

“Indian chemical companies have benefited from the shutdown of manufacturing units in China. However, its non-dependence on China due to focus on niche products, long-term contracts for its products offers earnings visibility. Also, its ability to pass on higher costs are some of the positives for the company,” the founder of the investment advisory firm said on the sidelines of Alpha Ideas 20-20 event in Mumbai.

Expansion into newer products and turnaround of its subsidiary, he said, would aid margins.

Key Risks Highlighted

  • Execution risk
  • Input cost fluctuation
  • Product concentration
  • Forex volatility

Watch the full video here to know more:

Disclaimer: The commentary on BloombergQuint represents the view of external experts. Investors are advised to consult a certified financial advisor/planner when making any investments. No views shared on a BloombergQuint program or story or conversation should be construed as personal advice.

Quintillion Business Media Pvt. (BloombergQuint) is not responsible for any risk or loss that might occur as a result of using this information in any way, regardless of your interpretation of the advice.

BloombergQuint’s digital and social media platforms provide views of only SEBI-registered investment advisors/analysts.