With meaningful market share in Chromium and Barium markets, the company's vertical integration strategy seems to make it resilient to external challenges.
Hi team, I liked Vishnu Chemicals aswell. It will see some downward pressure now in the backdrop of potential recession. Recession = reduction in steel usage = drop in chrome ore prices = lower realization for VCL
That said, the growth and margin drivers are both good. Definitely a company worth tracking
Most likely yes. There is still not a lot of clarity on the entire tariff structure on chemical and while chrome is exempt, it's still not clearly stated that Chromium chemicals are exempt from tariffs. Most likely the tariffs are likely to hit vishnu chemicals.
Absolutely. One of the key characteristics of a chemical company is capital efficiency. Across cycles Vishnu is one of the few companies to have demonstrated robust capital allocation.
Difficult to argue on near term headwinds , however seems one of the few chemical companies who can be in forefront of chemical pack when the cycle turns.
Will Vishnu Chemicals be affected by Trump Tariffs? In their earnings call, they mentioned they have 25% exposure to the US market. Not sure if barium and chromium chemicals are exempted from trump tariffs
Hi team, I liked Vishnu Chemicals aswell. It will see some downward pressure now in the backdrop of potential recession. Recession = reduction in steel usage = drop in chrome ore prices = lower realization for VCL
That said, the growth and margin drivers are both good. Definitely a company worth tracking
seems like the stock has stayed relatively flat YTD. any reason investors are not pricing a potential recession?
Most likely yes. There is still not a lot of clarity on the entire tariff structure on chemical and while chrome is exempt, it's still not clearly stated that Chromium chemicals are exempt from tariffs. Most likely the tariffs are likely to hit vishnu chemicals.
Hi Shankar,
Absolutely. One of the key characteristics of a chemical company is capital efficiency. Across cycles Vishnu is one of the few companies to have demonstrated robust capital allocation.
Difficult to argue on near term headwinds , however seems one of the few chemical companies who can be in forefront of chemical pack when the cycle turns.
Will Vishnu Chemicals be affected by Trump Tariffs? In their earnings call, they mentioned they have 25% exposure to the US market. Not sure if barium and chromium chemicals are exempted from trump tariffs