Broker’s call: JG Chemicals (Buy)
AUM Capital
JG Chemicals Ltd (JGCL), India's largest manufacturer of zinc oxide, is poised for growth with an installed production capacity of over 70,000 tpa for zinc chemicals and 10,000 tpa for zinc sulphate. The company operates three plants in West Bengal and Andhra Pradesh, and is one of the top 5 global producers of zinc oxide, supplying critical chemical grades to industries like tyres, rubber, pharmaceuticals, and ceramics.
JGCL holds a 30% market share in India's zinc oxide market and has long-standing supply relationships with major tyre manufacturers. The company recently completed a ₹100-crore Greenfield Plant in Dahej, Gujarat, adding 40,000 tpa of capacity for zinc chemicals, bringing its total aggregate capacity closer to 110,000 tpa. With a strong balance sheet and ongoing expansion plans, JGCL is expected to further consolidate its position in domestic and international markets, making it a promising investment with a target price of ₹774 in the next 9-12 months.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
