On July 11, 2023, PCBL shares jumped 7%. Shares recorded a 52-week high of Rs 174.50 in early trade after it commissioned the first phase of its prearranged 40,000 MTPA speciality chemicals development at its Mudra plant in Gujarat.

The initial phase of the brownfield expansion will see the accumulation of 20,000 MTPA of speciality chemicals capacity in the aforesaid plant.

“This improved capacity will permit PCBL to meet the increasing demands of its prevailing customers, enhance customer serviceability and also discover new opportunities.

At 9:23 am, PCBL shares were trading 6.23% higher at Rs 173.20 on the NSE.

The predictions for domestic firms involved in the speciality chemicals space have been reliably improving as they managed to gain some market share from their European complements in recent times. On top of that, the growing China+1 sentiment has aided demand for domestic players.

At times, most domestic speciality chemical players rolled out expanded their capacities to extant themselves as an alternative to China. Most analysts assume a demand revival from the second half of the current fiscal amid stabilisation in input prices and condensed pricing pressure from China. Thus, the capacity expansion intentional by PCBL will further improve its financials.