agro-chemical stock ideas: Opportunity in headwinds with a long-term perspective? 5 agro-chemical stocks with upside potential of up to 45%
Three years back, the whole agro chemical sector got rerated and some of the Indian companies which are focussed on domestic markets getting their fair share of attention from the street. But then they faced sudden headwinds as the Chinese companies once again became over active. Some time headwinds which bring a phase of underperformance in stocks are opportunities to enter those sectors and stocks with a long term perspective, because on the macro front the sector has more plus than minus. If one looks at what management of these companies have stated in recent past is that some of these headwinds are due to inventory issues which are getting over. Is the worst of the issues behind the agro chemical companies?
Majority of businesses have a cycle of ups and downs. The question is whether the downs are cyclical in nature or they have come up due to one off event. Agro chemical sector is in a down cycle due to one off events. Sudden increase in inventory in the industry, oversupply which came into markets to resumption of the Chinese production post covid curbs. That is the reason that the sector which did extremely well in the first part of the bull run
- FONT SIZE
Uh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors
Stock analysis. Market Research. Industry Trends on 4000+ Stocks
Clean experience with
Comment & Engage with ET Prime community
Exclusive invites to Virtual Events with Industry Leaders
A trusted team of Journalists & Analysts who can best filter signal from noise
Get 1 Year Complimentary Subscription of TOI+ worth Rs.799/-