Valuation hurdle weighs on stocks of specialty chemical companies

Top companies in the space have risen sharply over the last year

Stocks of specialty chemical companies have been among the biggest gainers on the bourses over the last year, outperforming the broader market. The top five specialty companies by market capitalisation have gained over 50 per cent since June last year, compared to 12 per cent that the Sensex has generated. 

There have been multiple reasons for the strong showing by these companies. In addition to the crackdown on Chinese chemical manufacturers, the triggers include trade disputes and anti-dumping duty by the US on Chinese imports, domestic demand from user industries as well as export opportunities to the developed markets. From