Section 1.0. Key Metrics in Pictures

Section 2.0. Chemicals Sector Landscape, Trends & SWOT Analysis

The Chemicals industry is diverse in nature and includes the manufacturing of commodity/bulk chemicals, specialty chemicals, polymers, consumer chemicals, and others. The product of the sector finds its way in daily essentials like medicines, food, construction materials, etc. Some of the well-known companies in the space include Johnson Matthey PLC, Treatt PLC, Croda International PLC, etc.

As per data from The European Chemical Industry Council (cefic), the sector recorded £53.0 Bn of exports and £28.0 Bn of value added to the UK economy in 2020. The sector employs a significant workforce and incurs a significant amount of R&D spending.

Section 2.1. Trends in the Chemicals Sector

Section 2.2. SWOT Analysis

Section 3.0. Sector Risks & Opportunities

Section 3.1. Risk Exposures to Chemical Sector

Section 3.2. Chemicals Sector Outlook

The Chemicals sector is considered to be a critical part of the UK economy and has been playing a key role in the objective of a decarbonized economy. The industry is one of the largest manufacturing exporters for the UK and seemed to be well-placed to deliver the Government's clean growth agenda. The sector can contribute towards the objective of reducing carbon footprint and focus on growing the hydrogen economy by investing in R&D and technology initiatives. The chemicals industry is expected to experience tailwinds in the long run with an expected recovery in the economy and anticipated easing of input cost pressures.

Section 4.0. Croda International Plc (Buy at GBX 6,564.00, current price as of 07 September 2022, at 08:30 AM GMT+1)

4.1 Company Details

4.2 Valuation and Technical Guidance

Section 5.0: Synthomer PLC (Buy at GBX 179.50, current price as on 07 September 2022, at 08:31 AM GMT+1)

5.1 Company Details

5.2 Valuation and Technical Guidance

Please note markets are trading in a highly volatile zone currently due to certain macroeconomic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 07 September 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5:  Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 6: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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