Chemplast Sanmar - Large Expansion In Suspension-PVC Possible: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Though Chemplast Sanmar Ltd.’s Q2 FY22 Ebitda grew 49% YoY to Rs 3.5 billion, it does not capture the entire benefit of polyvinyl chloride price upcycle, which started in August 2021. Further, the large price hike taken in October 2021 should also benefit the company in Q3 FY22. We share management optimism on the strong PVC cycle sustaining for next few years with demand outgrowing supply, and restrictions on PVC manufacturing/expansion in China. Chemplast has infrastructure to expand its suspension polyvinyl chloride capacity three times at Cuddalore plant and, at current prices, capex payback period has shrunk to just one year. We expect the company to soon announce doubling of its S-PVC capacity, which should help improve the growth outlook significantly. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Chemplast Sanmar - Large Expansion In Suspension-PVC Possible: ICICI Securities

Chemplast Sanmar - Large Expansion In Suspension-PVC Possible: ICICI Securities

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