Chemplast Sanmar (CSL) is a leading manufacturer of PVC resin in India, and plans to accelerate its custom manufacturing business. It is backward-integrated for paste PVC, which gives the company exposure to caustic soda, chloromethane and hydrogen peroxide markets. PVC market is undergoingstructural changes with tightening supplies, which favours PVC manufacturers. CSL is also focused on increasing revenues from custom manufacturing with a planned capex of Rs3.4bn over next 3-4 years. EBITDA is likely jump to Rs11.4bn in FY23E from Rs9.6bn in FY21 and Rs4bn in FY20; net profit is estimated to surge to Rs7.2bn in FY23E from Rs2.8bn in FY21. Post-tax RoCE are likely to be healthy at 31% and 27% respectively in FY23E and FY24E, while we see FCF generation of Rs5.5bn from FY23E onwards. CSL is a good play on polyvinyl chloride (PVC). CSL has paste PVC capacity of 66ktpa and plans to add another 35ktpa by H2FY24. It is the sole PVC producer in India with micro-suspension technology [the o...

According to the monitoring of the Commodity Market Analysis System of toodudu, the spot price of PVC carbide SG5 has decreased this week. On Thursday, September 14th, the average domestic PVC price was 6,310 RMB/ton, and on Thursday, September 14th, the average price was 6,214 RMB/ton, with a price drop of 1.52% during the week. This week, the domestic spot market price of PVC fell. The upstream calcium carbide market prices have significantly declined, and the futures market has weakened slightly, leading to a lack of confidence in the PVC spot market and a decrease in prices. The demand in the downstream market is poor, and the trading atmosphere on the market is weak. Many people are cautious and wait, and the overall transaction situation is weak, with pre holiday restocking being the main focus. As of now, the quotation range for PVC5 carbide materials in China is mostly around 6,050-6,450 RMB/ton. In terms of crude oil, international crude oil futures closed lower on September...