Interesting discussion. Few points which I could think of:
Is there any other source to validate this. Because they have been offering these since 3 years. If that’s the case, why hasn’t the shift from commodity to specialty happened in last 3 years or why hasn’t the company spoken about it so far.
These points were made in Q4 call. While it says there is a shift in nitric acid business – China to India. One would have expected it to be a more seamless & secular trend. But if we compare quarter wise margins – there is volatility in margins – a drop in Q2. Which is a little uncommon for specialty chemicals, IMO.
Comparison with DN on margins improvement trajectory–
For Deepak Nitrite –margin improvement largely came from fine & speciality chemicals division. They were manufacturing products which are not price sensitive. Products which were customized as per client’s needs. DN - more diversified player even in FY 18-19.
In case of Deepak fertilizers, I think the demand in chemicals this year is linked to strong demand in end user industries (pharma, agrochem; for LDAN – cement, steel, etc). Should track how it pans out in the coming quarters. Not sure if it would be appropriate to compare the margin trajectory with Deepak Nitrite, at this juncture
Disc: Not invested, studying