JG Chemicals Ltd (JGCL) has received a Buy rating from brokerage firms with a target price of ₹774, representing significant upside potential from its current market price of ₹629.70. According to reports from The Hindu BusinessLine, the recommendation is based on the company's strong growth prospects from its Dahej expansion and leadership position in the zinc oxide market. The brokerage expects this premium valuation to be justified over the next 9-12 months as the company continues to benefit from its ongoing expansion initiatives.
JGCL holds the position as India's largest zinc oxide manufacturer with an installed production capacity of over 60,000 tpa for zinc chemicals and 10,000 tpa for zinc sulphate. As reported by The Hindu BusinessLine, the company operates plants in Jangalpur and Belur in West Bengal, and Naidupeta in Andhra Pradesh, positioning itself among the top 5 zinc oxide producers globally. The company commands approximately 30% market share in India's zinc oxide market and maintains long-standing supply relationships with 9 out of the top 10 global tyre manufacturers and all of the top 11 Indian tyre makers, including major players like Apollo, MRF, and CEAT.
The ₹100-crore Greenfield Plant in Dahej, Gujarat, adds 40,000 tpa capacity for zinc chemicals, scaling the company's total aggregate capacity from approximately 70,000 MTPA to 110,000 tpa. According to reports from The Hindu BusinessLine, post completion of the two phases, ₹1,000 crore is expected to be added to the topline. This expansion is expected to further consolidate the company's position domestically and internationally, with the strong balance sheet position supporting the ongoing expansion initiatives.
JGCL manufactures Zinc Oxide (ZnO), Zinc Sulphate (Heptahydrate and Monohydrate), and recycled zinc products, supplying critical chemical grades to industries including tyres, rubber, pharmaceuticals, and ceramics. As reported by The Hindu BusinessLine, the company serves these sectors with its comprehensive zinc chemical portfolio, supporting its strong market position across multiple industrial applications and reinforcing its position as a key supplier to the global tire industry.
