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Damani's Quiet Chemical Bets: Profit or Peril?
18 Jun
Summary
- Investor Damani re-entered Mangalam Organics, a camphor maker.
- Bhagiradha Chemicals, an agrochemical firm, is also a Damani holding.
- Both companies are cyclical chemical producers investing in new capacity.
Radhakishan Damani is focusing on niche chemical processing companies, specifically Mangalam Organics and Bhagiradha Chemicals, which are asset-backed and face significant entry barriers.
Mangalam Organics, a pine chemistry firm and the world's largest camphor producer, saw Damani's stake fall below 1% before a re-entry to 2.2% as of March 2026 filings. The company, despite its market leadership, experiences commodity price cyclicality, influencing its profits and leading to a significant debt-funded capacity expansion.
Bhagiradha Chemicals, a producer of agrochemical active ingredients, has seen Damani maintain a steady 3.3% holding since mid-2024. This company has also undertaken a substantial capacity expansion through a new plant. Despite a global agrochemical downturn impacting profits, sales have shown recovery.
Both companies are characterized by cyclicality and are undergoing capacity expansions funded by debt and equity. Mangalam Organics' share price has dropped significantly from its 2021 peak, while Bhagiradha Chemicals has seen a substantial increase since 2021. Investors are advised to watch these cyclical plays closely as new capacities ramp up.
