Concall Notes: Chemplast Sanmar(CHEMPLASTS) Q2FY26
To get a fresh perspective on the company after a long gap I have been going through the last quarter concalls of some of the companies that I follow. Given the upcoming Q3FY26 concall, right now going through the Q2FY26 concall, starting with CHEMPLASTS.
Disclaimer: These are my notes from the concall—I may have misunderstood some points or gotten numbers wrong. Happy to correct any errors.
Notes:
Import of Suspensive PVC (S-PVC) from China a major competition.
Produces S-PVC, paste-PVC, value added chemicals, etc
Cuddalore, Co. has paste-pvc plant. [Side Note]: This place in Tamil Nadu is a heavy industries hub.
Indian refrigerant gas market. General refrigerant market one of the fastest growing globally.
Co. setting up a new greenfield plant for refrigerant gas. R32
China's anti-involution drive to create fair competition among its companies in various sectors. This creates opportunities for companies in other countries. Something with Co. can take advantage of.
India if it can reduce its imports from EU and China will help Co.
S-PVC demand in India = 4.3 million tonnes but domestic supply = 1.5 million tonnes only. A big gap to fill here.
ADD -> Anti-dumping duty result awaited on PVC.
European firms doing cross subsidised exports, where locally they sell on high margins but in export markets they sell on reduced margins.
Refrigerant gas quota per country. Companies producing refrigerant gas in India -> SRF, Navin Fluorine, Gujarat Flurochemicals.
Things to look out for in next Q:
- Capex update
- Any positive news from agro-chemical side
- Any debt reduction started or any more debt added?
- Any policy update?