Mumbai, Nov. 29 -- The Street is gravitating towards speciality chemical manufacturers that supply contract development and manufacturing organizations (CDMOs) and active pharmaceutical ingredient (API) makers, as uncertainty looms over the broader chemicals sector.

The reason, according to experts, is that suppliers to pharma companies enjoy clearer growth visibility, far less competition, and stronger margins than industry-linked speciality and agro-chemical businesses that dominate the country's chemicals landscape.

Intermediates tied to new chemical entities require complex synthesis, rigorous regulatory oversight, and long qualification cycles. In such cases, speed matters far more than cost, and these inherent barriers deepen cust...