Speciality Chemicals Theme
Windmill Capital
Companies producing sophisticated chemicals for specific purposes
3Y CAGR
3.02%
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Daily Change
Today's change in this smallcase is
7Y CAGR
CAGR (Compounded Annual Growth Rate) indicates the average yearly return generated by a smallcase from the date of launch. Only live data is considered to calculate the CAGR. Thus, this smallcase has given returns on an average every year since Apr 4, 2016
High Volatility
Stock prices move up and down on a daily basis, resulting in fluctuating investment value. High volatility indicates high fluctuation is expected in the investment made in this smallcase
About the smallcase
Speciality chemicals are specific items that are used in low quantities for the production of high-value goods
- Indian middle class is leading a dramatic change in demand for items like food, clothing and transportation, which is primarily driving demand for speciality chemicals
- For example, caramel manufactured from sugar is a commercially produced speciality chemical. Caramel colouring is extensively used to manufacture soft drinks and confectionery items
- Production of speciality chemicals allows customer stickiness and leads to high revenue predictability
- Since price of speciality chemicals is determined through negotiations, increase in raw material costs can also be passed on to protect margins
This smallcase comprises companies manufacturing speciality chemicals that are used in a wide range of industries like automobiles, pharma, textiles, food processing, agrochemicals, etc
Methodology
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Methodology
universe
All publicly traded companies on the National Stock Exchange of India, covering 90% market capitalization, are included in the universe
research
- At Windmill Capital, our team crafts thematic portfolios inspired by long-term macro trends. We pinpoint key sectors, industries, and stocks poised to thrive amidst these emerging trends. Each selected stock or ETF undergoes a thorough evaluation process, which includes reviewing company’s investor presentations, conference calls, and sector reports to ensure a perfect thematic alignment.
- After shortlisting, these stocks are meticulously analyzed based on fundamental factors and their recent financial performance. This structured approach enables us to build high-conviction portfolios that resonate with sustainable market trends.
- The Specialty Chemical Thematic smallcase includes companies that manufacture specialty chemicals used across various industries, including automobiles, pharmaceuticals, textiles, food processing, agrochemicals, and more.
stockScreening
- Stocks/ETFs qualifying the above-mentioned research criteria are selected for further analysis
- Proprietary liquidity filters are applied to remove ill-liquid stocks/ETFs from this list
- A special check is further applied to remove stocks, where a significant part of the promoter holdings are pledged
- Stocks/ETFs are further removed based on red flags such as the stock’s presence in the ASM/GSM list of the exchanges, deep negative news or sentiment, etc.
weighting
The list of selected stocks is weighted such that the risk contribution of each stock in the smallcase is equal. By focusing on risk instead of market cap or value, this weighting scheme provides better diversification and protection against market volatility.
rebalance
This smallcase has a quarterly rebalance schedule. Once every quarter, the research team reviews this smallcase and realign the weights with the selected asset allocation strategy for the next quarter
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