This specialty chemical stock is among Axis Securities' top picks for the month

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Domestic brokerage and research firm Axis Securities in a recent note recommended top stocks for the month of August 2021 as it foresees robust performance sustaining during the month for these picks that vary from different sectors.

Chemicals company Camlin Life Sciences is one such stock pick for the month by Axis Securities. It has a target price of 215 per share. Camlin Fine Sciences (CFS) is among the leading integrated manufacturer of the traditional antioxidants (Shelf Life Solutions) available. Shares of Camlin Fine Sciences have surged more than 140% in one year and have rallied 50% this year (year-to-date or YTD).

Talking about the sector outlook, the brokerage said that the specialty chemicals sector has been one of the sunrise sectors of the country. India has been gaining a global market share in this space leveraging its capabilities and supply chain realignment from China to India.

It has an overweight stance on the Specialty Chemicals sector. ”We believe Indian companies would gain further ground as companies reduce dependence on China after the COVID-19 pandemic and shift their supply chains to India. Apart from the long-term supply chain shift theme, many specialty chemicals form a part of essentials and the facilities have started opening up post-lockdown relaxations.”

The decline in raw materials prices would also support margins and reduce working capital needs. However, input costs are a pass- through for most companies and benefits may be limited. Overall the specialty chemicals industry is likely to continue to perform well in the medium term, it added.

Axis Securities’ top picks for August also includes ICICI Bank, SBI, Federal Bank, Equitas Small Finance Bank, Varun Beverages, Tech Mahindra, Bharti Airtel, HCL Technologies, Orient Cement, Ashok Leyland.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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