Clariant Chem an opportunity for investment: G Shah

Gaurang Shah of Geojit Financial Services is of the view that at current market price the Clariant Chemicals India is a fantastic opportunity for an investment period of something like 18-24 months. It has a price target of around about Rs 215 with that kind of a timeframe in mind, he added.

Shah told CNBC-TV18, "A lot of industries and sectors have been spoken about and the slow down like the four-wheelers. We feel that speciality chemicals is one particular segment that is going to outperform going forward and in that we have identified that Clariant Chemicals India Limited as our pick in the midcap pack. The reason why we like this particular stock is because it is one of the leading manufacturers of speciality chemicals in India. The company has got a good support from its parent company Clariant AG Switzerland wherein the parent company going forward is going to increase its focus as far as the outsourcing is concerned from the Indian subcontinent which automatically translates into a great growth opportunities going forward."

He further added, "Clariant incidentally caters to sectors like pharmaceuticals, agrochemicals, dyes and pigments. We feel that these verticals have not witnessed as much slow down as witnessed in some sectors like real estate, may be IT or four-wheelers and considering the kind of product accessibility and market share that Clariant has in the Indian subcontinent, we are quite confident that at current market price the company is a fantastic opportunity for an investment period of something like 18-24 months. We have a price target of around about Rs 215 with that kind of a timeframe in mind."

Disclaimer: Analyst personally does not hold this stock but has recommended it to his clients.

Source: Moneycontrol