1⃣ Last 2 years everything which could go wrong has gone wrong in the story of decade of chemical sector in 2021 – supply led volatility, demand contraction, raw material price volatility
2⃣Despite of all the industry challenges, company has done well financially in last few years
3⃣Board looks good with relevant experience and good share of independent directors
4⃣Company expecting 8-10% volume growth for next 3-5 years with higher EBITDA than volume growth and higher PAT growth than EBITDA growth
5⃣Premiumization and entry of more players on client side are key tailwinds to look for
6⃣Rest of the world (ex India) faced demand challenges and volume contraction. Most of the growth was price led
7⃣ Company has done decent capex recently and some more capex is work under progress
8⃣ Most of the capex seem to be happening through internal accrual as despite capex and sales growth, company has been able to reduce debt
9⃣ Company seem to have clean RPTs with only remuneration and dividend payments
🔟Last 3 years, volume growth has been flat for company but company expects to get back to volume growth in coming years
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