Equity Analysis /
India

IN : Chemicals - Overall - Petchem upside will be short-lived

    Avadhoot Sabnis
    CGS-CIMB
    16 April 2021
    Published by

    Petchem margins (mainly for polymers) shot up in recent weeks due to capacity shutdowns in the US due to winter storm Uri hitting Texas last month. We expect margins to remain elevated for another 1-2 months before reverting to pre-storm levels. Global demand supply balance is negative in medium term. Retain Add on GAIL (TP Rs160) and IOC (TP Rs135) and Reduce on Reliance Industries (TP Rs1,405).