Three Indian Specialty Chemical Smallcaps Ride A China+1 Shift

The article looks at three Indian chemical companies that may benefit as global customers seek alternatives to China.

Yasho Industries makes rubber chemicals, lubricant additives and aroma chemicals.

Privi Speciality Chemicals mainly makes chemicals used in fragrances and personal-care products.

Aether Industries makes specialty chemicals and is moving toward contract manufacturing.

All three companies reported stronger financial results in the periods discussed.

Aether and Privi already have relatively high profitability, while Yasho is recovering from earlier pricing pressure.

The companies are adding capacity and pursuing more specialized products and long-term customer relationships.

However, their share prices and valuations may already reflect high expectations.

Investors will need to see whether planned capacity and customer commitments produce lasting revenue and profits.