Tailwinds for speciality chemical stocks: Majority turn into multibaggers with Fineotex Chemical becoming seven-bagger!

Sweet sixteen stocks turn into multibaggers from speciality chemical sector; Fineotex Chemical skyrockets 590 per cent!

The Indian benchmark indices have climbed the wall of worry and reclaimed their important psychological marks with Nifty touching 17,300 and Sensex comfortably trading above the 58,000 mark. Having said that, concerns like a weak rupee are lingering in the back of the mind! 

The tough rupee has gained some ground recently but it's still at elevated levels. Usually, when the rupee is weakened against the US dollar, the export-oriented sectors like information technology and pharmaceutical stocks perform well. However, this time around, there is another sector that has caught investors’ interest.   

It is India’s speciality chemical sector, which is likely to benefit from the current global conditions. The Russia-Ukraine war and its fallout are seeing the demand for speciality chemicals shifting to India, and Indian companies are well-positioned to take advantage of this situation. Furthermore, some of the client demand is shifting to Indian companies from European as the latter is temporarily shutting down due to energy shortage.   

As per a report by a brokerage house, India’s speciality chemicals sector is well-poised to capitalise on global tailwinds and expand its global market share to 7-8 per cent in the next couple of years from 4 per cent currently. This is due to the ‘China Plus One’ strategy.   

So, here is the performance of speciality chemical stocks in the last two years: 

Interestingly, sixteen stocks out of twenty-nine turned multibagger ">Multi-baggers in just a span of two years. The majority of the stocks have delivered positive returns.   

The Top Gainers in the list include Fineotex Chemical Ltd (FCL) as it gave a handsome return of nearly 7x, followed by Gujarat Fluorochemicals (Fluorochem), which also turned almost a seven-bagger.   

So, which stocks do you hold among the above-mentioned list? Let us know in the comments section.