Dear friends, today we are back with a sector that has shown lot of promise in year 2016 and continues to be a promising sector in 2017 also.The sector we are talking today is - Specialty Chemical sector . The chemical sector showed possible signs of revival in 2016 and its on the path to again become one of the bullish sectors in 2017.
We already discussed how China plants are shutting down due to risk of pollution which has given a big opportunity to Indian chemical industries which are taking full advantage of rising chemical and dyes prices.
Beholding above, there is an interesting stock to watch from Chemical sector - ASAHI SONGWAN COLORS LTD. at CMP 237 [ BSE: 532853 | NSE: ASAHISONG ].
The Right Price to enter into this stock can be around 230 /- levels and one should keep exit trigger at 197 /- on closing basis.
Asahi Songwan is currently trading at P/E 14.15 as compared to industry P/E 23.89.
Asahi Songwon Colors Ltd. is in the business of manufacturing pigments. Pigments are basically colourants, adding colour to everything around us, namely ink, paints, plastics, textiles, rubber etc.
Asahi Songwon Colors Ltd. is a leading player in the Indian Pigment industry and intends to become a leading manufacturer of pigments around the world. The company is in the manufacturing of CPC Beta Blue and Blue Crude, exporting substantial production to leading MNCs around the world on account of quality of its products.
The Company was selected in Forbes Asia July 2012 edition as the Asia’s 200 Best Under a Billion Companies.
Since the stock is from small cap segment, a better way to invest in such stock is to invest only a small quantity of total capital (as a rule one should only invest 5-7% as Money management discipline).
Asahi Songwan Ltd. should be bought around above specified levels only and exit trigger should be followed strictly.
Note: Kindly note above is not any kind of recommendation and the information provided on this blog is personal and above is not a research report but information as available on public domain and it should not be treated as a research report.
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Disclosure: It is safe to assume that above mentioned stock can be in our portfolio and hence our views can be biased. Readers should consult their financial advisory before any investments