CHEMICAL

The Indian chemical market is hitting new record high levels and is giving promising multifold
returns. Indian specialty chemicals on the other hand are expected to double over the next five years
which calls for building deeper insights into this industry. India's chemical industry is extremely
diversified and holds its own significant importance in the world in terms of positions. India is the
4th largest producer in agrochemicals and ranks 14th in export and 8th position in global imports of
chemicals. Also, the domestic chemicals sector enterprises are expected to grow at 18-23% in FY22.,
owing to growing demand from the domestic demand and end user industries, with the high prices
of chemicals. End user such as food processing, personal care, home care will become the driving
force for the India's specialty chemicals market. The increased leverage in trade of chemicals has
motivated the specialty chemicals companies of India into further expanding their capacities to cater
to the rising demand from domestic and overseas. Global companies looking to de-risk their supply
chains, diverting it from China, can become a potential opportunity for India. And the political stimuli
provided by government in terms of 100% FDI via automatic route makes India all the more
lucrative. If the industry intrinsically validates similar trends, this can be the most profitable
investment for the coming decade. Products filled with lithium opens up a new avenue of interesting
impact on the industry can be checked on this front also, to solidify the decision.

Asian Paints:

Asian paints entered into the 500 most valuable companies in 2021. The paint industry essentially
provides "growth potential" in view of pent-up demand, safe painting solutions, development of
rural markets with growth in sales of related non-premium range of products. Moreover, there is a
gradual shift from unorganized to organized players led by better consumer awareness in the
segment, and per capita paint consumption in India is expected to boost the paint and coatings
industry. Increased focus on home improvement, stress on keeping the family members safe from
infections indicate an opportunity for the paint and coating industry. As an established player in this
business segment, we continue to witness relatively low per capita consumption at an industry level
with significant scope for expansion of the overall market. They have focused on automation to
improve the accuracy of their production processes and deliver consistency throughout their
manufacturing process and reduce waste. Their plants use Industry 4.0 technology capability which
allows them to operate, monitor and optimize their manufacturing processes through effective use
of data gathered at each step of their manufacturing process. They also introduced a robust
automated data analytics system across their plants. This has resulted in real business impact in
terms of machine cycle time reduction, energy cost savings, and material cost savings by improving
accuracy of additions. There has also been an increase of 10.1% in the number of female employees
in the reporting year to empower their female employees, they have undertaken various initiatives.
A holistic improvement guarantees good long-term growth.

Indigo

With year-on-year revenue growth, and increasing top and bottom-line revenue, a long-term growth
is expected. As per moneycontrol’s estimates, Indigo Paints would yield a valuation of 46x FY23 EPS,
based on the upper price band of Rs 1,490 per share versus 63x for Asian Paints and 77x for Berger
Paints. A combination of higher growth and lower valuations makes for an exciting investment
opportunity.
PHARMACEUTICAL

India partakes in a significant situation in the worldwide drugs area. The nation has an enormous
pool of researchers and engineers with the potential to guide the business ahead to more
noteworthy statures. According to the Indian Economic Survey 2021, the domestic market is
expected to grow 3x in the next decade. India’s domestic pharmaceutical market is estimated at US$
42 billion in 2021 and likely to reach US$ 65 billion by 2024 and further expand to reach ~US$ 120-
130 billion by 2030.India's biotechnology industry comprising biopharmaceuticals, bio-services, bio-
agriculture, bio-industry, and bioinformatics. The Indian biotechnology industry was valued at US$
64 billion in 2019 and is expected to reach US$ 150 billion by 2025. The high monetary development
alongside expanding entrance of health care coverage will roll out more long-lasting improvements
in the business. Medical care was one of the top-performing areas of 2020 and it is doing admirably
in 2021 as there's an expanding interest in life-saving medications, resistance boosting supplements.
Of late, individuals have been focusing on purchasing medical care items. With inoculation drive
going full speed ahead, there's a decent chance for pharma organizations as India anticipates
different sorts of antibodies. The pharma market saw development of 37.2% in value terms for June
2021 quarter, part of the way helped by the Covid-19 portfolio. Going ahead, the standpoint for the
area would rely upon the administration's critique on the development viewpoint in India, and in this
manner, a profound plunge into the business can give substantial contentions.

Sun Pharma

Sun Pharmaceutical Industries Ltd. (Sun Pharma) is the fourth largest specialty generic
pharmaceutical company in the world with global revenues of over US$ 4.5 billion. Supported by
more than 40 manufacturing facilities, they provide high-quality, affordable medicines, trusted by
healthcare professionals and patients, to more than 100 countries across the globe. They
manufacture and market a large basket of pharmaceutical formulations covering a broad spectrum
of chronic and acute therapies. The first among Indian pharmaceutical companies to realize and
embrace the importance of investing in research, they invest up to 7-8% of their global revenues into
Research and Development (R&D) every year. This stock is a part of both Nifty and Sensex and is
showing growing trends. Net Sales at Rs 9,718.74 crore in June 2021 up 28.13% from Rs. 7,585.25
crore in June 2020. Quarterly Net Profit at Rs. 1,404.04 crore in June 2021 up 184.81% from Rs.
1,655.60 crore in June 2020. EBITDA stands at Rs. 2,973.60 crore in June 2021 up 48.88% from Rs.
1,997.30 crore in June 2020. Sun Pharma EPS has increased to Rs. 6.00 in June 2021 from Rs. 6.90 in
June 2020. The futures are too trading close to the market price, implying that the futures are
trading at a premium and the stock price is assumed and perceived to increase.

GSK

Beginning in 1715 with the opening of an apothecary shop in London, their story has always focused
on innovation. From a selection of individual entrepreneurs to a global company of around 100,000
employees, they’ve developed a variety of medicines and healthcare products that form the
foundations of today’s GSK. With the merger of SmithKline Beecham and GlaxoWellcome in 2000,
GSK was formed. Today they are a science-led global healthcare company with around 100,000
employees worldwide. They aim to bring differentiated, high-quality and needed healthcare
products to as many people as possible with our three global businesses of Pharmaceuticals,
Vaccines and Consumer Healthcare. Our Pharmaceuticals business has a broad portfolio of
innovative and established medicines in respiratory, HIV, immuno-inflammation and oncology. They
are strengthening our R&D pipeline through a focus on immunology, human genetics and advanced
technologies to help them deliver transformational new medicines for patients. With a strong
financial position this company have excelled during the pandemic.