Nifty on Tuesday ended 89 points stronger to form a small positive candle with an upper shadow on the daily chart. The short-term trend of Nifty continues to be range-bound

“ Lower quality names in our country have done well over the last couple of years. Our companies have taken a back seat, which is why we are finding it relatively easy to find high-quality companies. We are trying to figure out if this is a good time to ramp up our position in specialty chemicals, as Chinese dumping seems to have abated.”

Motilal Oswal recommended Neutral rating on Alkyl Amines with a target price of Rs 1935 in its research report dated November 08, 2023.

The share touched a 52-week high of Rs 3,061.00 and a 52-week low of Rs 2,119.05 on 04 November, 2022 and 31 March, 2023, respectively.

“I think the second half of the year will look good for any of our larger holdings. For example, we are a large shareholder in Divi's Lab, in Alkyl Amines, in GMM Pfaudler, in Paushak and we are hoping the second half of the year will bring good news as the price action seems to have bottomed out. ”

“The demad for chemicals will start improving in China soon. When this happens, the intensity of predatory pricing or dumping recedes and we expect it to happen in the coming months. This will benefit more and more Indian players such as Alkyl Amines, Deepak Fertilisers, Deepak Nitrite and other players as well.”

"We have added RHI Magnesita to Little Champs portfolio. RHI Magnesita makes ceramic lining, brick lining which goes into steel plant furnaces or cement plant furnaces. They have around 35% share globally and 40% share in India. Good gross margins 40%, gross margins 15%, operating margins around 30% ROC. It is a near debt-free company. It has an Austrian parent listed in Austria. We have invested in the Indian subsidiaries over the last couple of weeks."

Motilal Oswal recommended Neutral rating on Alkyl Amines with a target price of Rs 2350 in its research report dated August 08, 2023.