Premium valuations for specialty chemicals to sustain on multiple tailwinds

Near-term upsides however are limited given the spurt in stock prices

Investor interest in specialty chemical companies continues to be strong given the stellar listing gains for Clean Science and Technology and the subscription for Tatva Chintan Pharma Chem. Clean Science, which develops eco-friendly technologies and operates in performance chemicals and pharmaceutical intermediates, is up 78 per cent on debut. Tatva Chintan, another specialty chemical company, has seen a 14 times oversubscription for its initial primary offering which closes on Tuesday.

Among the larger listed players, Deepak Nitrite has been a major outperformer, nearly doubling in value over the last six months. Even over a three year period while most large