Why has the stock of Camlin Fine Chemicals cracked sharply in April?

During the previous week, Camlin Fine Chemicals touched a 52-week low of Rs.112 and these were largely on the back of concerns that the ongoing Russia-Ukraine war could have a negative impact on Q4 earnings of Camlin Fine Chemicals. The war has impacted supply chain for raw materials and the price of logistics as well as power and fuel costs.

However, there could be more to come as Camlin has warned that things could get worse from here. Camlin’s EU based subsidiary faced an unprecedented 240% spike in power costs, as is the norm there. Even in Q3, input costs were a major challenge with input inflation resulting in EBITDA margins contracting by a full 270 bps from 15.3% to 12.6%.