Chemcon Speciality Chemicals Ltd
NSE:CHEMCON
Chemcon Speciality Chemicals Ltd
Chemcon Speciality Chemicals Ltd. engages in the manufacture and sale of chemicals for pharmaceuticals and oilfield industries. The company is headquartered in Vadodara, Gujarat and currently employs 207 full-time employees. The company went IPO on 2020-10-01. The firm is a manufacturer of specialized chemicals, such as hexamethyldisilazane (HMDS) and chloromethyl isopropyl carbonate (CMIC) which are used in the pharmaceuticals industry and inorganic bromides, namely calcium bromide, zinc bromide and sodium bromide that are used as completion fluids in the oilfields industry. The firm supply its products to domestic customers and also export its products to countries including United States of America, Italy, South Korea, Germany, People’s Republic of China, Japan, United Arab Emirates, Serbia, Russia, Spain, Thailand and Malaysia.
Chemcon Speciality Chemicals Ltd. engages in the manufacture and sale of chemicals for pharmaceuticals and oilfield industries. The company is headquartered in Vadodara, Gujarat and currently employs 207 full-time employees. The company went IPO on 2020-10-01. The firm is a manufacturer of specialized chemicals, such as hexamethyldisilazane (HMDS) and chloromethyl isopropyl carbonate (CMIC) which are used in the pharmaceuticals industry and inorganic bromides, namely calcium bromide, zinc bromide and sodium bromide that are used as completion fluids in the oilfields industry. The firm supply its products to domestic customers and also export its products to countries including United States of America, Italy, South Korea, Germany, People’s Republic of China, Japan, United Arab Emirates, Serbia, Russia, Spain, Thailand and Malaysia.
Revenue Growth: Chemcon reported Q3 revenue of INR 77 crores, up 54% year-on-year, with strong performance in bromide and bromobenzene segments.
Margin Pressure: EBITDA margin dropped to 17.6% from higher historical levels, mainly due to lower margins in HMDS and raw material price pressures.
Product Diversification: The company is actively expanding its product portfolio, adding bromobenzene and planning to commission Guanine and P10 products soon.
Weak Pharma Demand: Demand for key products HMDS and CMIC remains soft due to sluggish pharmaceutical sector, but management expects a revival as the industry recovers.
Oilfield Chemicals Strength: Bromide business saw significant growth, driven by healthy demand and better raw material sourcing, and is expected to sustain momentum.
Expansion Plans: New capacities are coming online, including additional plants and long-term land acquisition for future growth; P10 is expected to start in Q1 FY24.
Guidance: Management is optimistic on growth and margins improving as new products ramp up, but offers no specific quantitative guidance.
