4 Chemicals Stocks To Buy, Hold In March As Recommended By Top Brokerage Houses

Leading brokerage houses have recommended buy and hold rating to four chemicals sector stocks. These stocks are Deepak Nitrite, Vinati Organics Ltd, Galaxy Surfactants, and Tata Chemicals. Brokerage firm JM Financials assigned buy to Deepak Nitrite shares and Prabhudas Lilladher assigned hold call to Vinati Organics shares.

Meanwhile, Nirmal Bang has picked Galaxy Surfactants shares to buy and brokerage firms VLA Ambala and Axis Securities are bullish on Tata Chemicals. Check details below:

1. Buy Deepak Nitrite Shares: Brokerage from JM Financial has recommended buy call to Deepak Nitrite shares with target price of Rs 2565 apiece. According to the analyst, "we believe that investors can make 16-17% CAGR returns over the next 5 years. Given the lack of clarity around the funding and timeline, we keep our estimates unchanged. We re-iterate Buy with an unchanged Mar'25 TP of Rs 2,565/share."
We believe Deepak Nitrite's MoU for investment of Rs 14,000 crore (Rs 12,500 crore for phenol/acetone downstream and INR 15bn for specialty) (to be completed by CY27) will put it in the league of chemical giants such as Covestro, Evonik, Huntsman, etc.

Current market price of Deepak Nitrite shares on BSE is Rs 2206.95 apiece with intraday gain of 0.87%. The company has a market capitalisation of Rs 30,101.26 crore. Deepak Nitrite shares declined 10% year-to-date, surged 20% in last 1-year, and rallied 758% in last 5-years.

2. Hold Vinati Organics Ltd Shares: Renowned brokerage firm Prabhudas Lilladher has assigned hold call to Vinati Organics shares as the analyst upgraded the stock to hold from reduce with the target price of Rs 1626 apiece, valuing it at 38x FY26E EPS. Currently, the stock is trading at ~45x FY25 P/E.

We recently met with the management of Vinati Organics (VO IN). Based on our interaction, Q4FY24 performance is expected to be slightly better than Q3FY24, but significant improvement will be visible only in FY25. Destocking is largely over and ATBS, IBB, IB and Butyl phenols plants have ramped up their capacity utilization.
Current market price of Vinati Organics shares on BSE is Rs 1626.65 apiece with intraday gain of 0.62%. The company has a market capitalisation of Rs 16,719.04 crore. Vinati Organics shares declined 12% in last 1-year, 11% in last 2-years, and gained 15% in last 3-year. In last 5-years, Vinati Organics stock zoomed 100.52%.

3. Buy Galaxy Surfactants Shares: According to brokerage firm Nirmal Bang, "We reiterate our Buy call on Galaxy Surfactants Ltd. post rolling forward valuation to FY26E earnings (price-to-earning 25 times) with a potential upside of 35%. The analyst has assigned a target price of Rs 3300 to Galaxy Surfactants shares.

While India volumes continue to grow in double digits consistently, Africa, Middle East and Turkey should recover in FY25 on an exceptionally low base. We also expect specialty care volume recovery, led by restocking in developed markets. FY25 could be the only year post IPO wherein overall volume growth (our est. ~11%) should exceed 6%-8% guided range, added the analyst.

Current market price of Galaxy Surfactants shares on BSE is Rs 2482.50 apiece with intraday fall of 1.09%. The company has a market capitalisation of Rs 8801.64 crore. Galaxy Surfactants shares declined 10.55% year-to-date and fell 9.31% in last 6-months. In last 1-year, Galaxy Surfactants stock surged over 3% and gained 129% in last 5-years.

4. Buy Tata Chemicals Shares: According to VLA Ambala, "we can expect target ranging from Rs 1500 to 21,00 in the next one month to max 24 months. Use any dip up to 1000 for averaging. It is a quality stock and view should be mid-term to long run. Now, if your view is only for swing trading (short term then use trailing at 1110) and can do averaging up to 1160."

According to Axis Securities, "the stock has seen a very strong buying action to hit its all-time high trajectory. The upside momentum can increase further."

The 52-week high price of Tata Chemicals stock on BSE is Rs 1349.70 apiece and 52-week low price is Rs 922.20 apiece, respectively. The company has a market capitalisation of Rs 33,497.90 crore. Tata Chemicals shares surged 33% in last 1-month, soared 21% in last 6-months, and rallied 54% in last 2-years. In last 3-years, Tata Chemicals shares gained 76%.

Disclaimer: The stocks have been picked from the brokerage report of Axis Securities, VLA Ambala, Nirmal Bang, Prabhudas Lilladher, and JM Financials. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.

Tags: Deepak Nitrite, Tata Chemicals, Galaxy Surfactants