Specialty Chemicals Business: COVID 19 Impact and Opportunities

Specialty Chemicals business has been a success story for India in the past (Pre-COVID) with above average EBIDTA margins and a healthy growth across a wide range of companies and sub-sectors. At Avalon, We have analyzed 125 companies across 13 sub-sectors of the Specialty Chemicals business in the Pre-COVID-19 period and subjected them to the Avalon Pandemic Test to assess their resilience to COVID-19. Companies were assessed based on three key parameters – Cash Resilience, Profitability and Sector Impact. The results are stark and underscore the importance of prudent cash management and consistent profitability, among other suitable interventions.