Chemical stock in focus after it partners with Malaysia-based Co. to expand its ASEAN footprint

SYNOPSIS: This chemical manufacturing company partners with Malaysia-based Qualibit to expand waterproofing and construction chemicals business across Southeast Asia, allocating up to 20 percent Bitumag capacity to drive export-led growth through ASEAN distribution networks.

During Monday’s trading session, shares of a rapidly growing chemical manufacturing company with over three decades of expertise in dispersion chemistry and construction chemicals surged nearly 5 percent from its intraday low on NSE, after signing a partnership with a Malaysian firm and expanding its Southeast Asia presence.

With a market cap of Rs. 207.6 crores, shares of Ducol Organics & Colours Limited closed at Rs. 127.7 on NSE, as against its previous closing price of Rs. 137.1. The stock has delivered positive returns of around 18 percent in one year, but has fallen by over 3 percent in the last one month.

What’s the News

According to the latest disclosures on NSE, Ducol Organics & Colours Limited has entered into a strategic partnership with Malaysia-based Qualibit Chemicals & Industries Sdn. Bhd. to expand its waterproofing and construction chemicals business across Southeast Asia.

Under this arrangement, Ducol will supply waterproofing systems manufactured through its subsidiary Bitumag to Qualibit’s established ASEAN manufacturing and market network, with scope to extend the partnership to products and capabilities from future strategic acquisitions in the waterproofing and construction chemicals sector, subject to mutual agreement.

As part of the operational framework, Ducol plans to allocate up to 20 percent of its chemicals capacity in Bitumag for distribution in the Malaysian market through Qualibit’s regional network, subject to operational planning and market requirements. The collaboration is expected to contribute to incremental export-driven growth for Ducol.

From a manufacturing standpoint, Bitumag will play a central role in executing the supply strategy. The facility has an installed membrane production capacity of around 10 million square meters per annum, providing sufficient scale to cater to both domestic and export requirements.

Qualibit Chemicals & Industries Sdn. Bhd. is a Malaysia-based specialty chemicals manufacturer headquartered in Johor Bahru, with capabilities spanning adhesives, specialty coatings, sports flooring systems, and construction chemical solutions. It operates advanced manufacturing, blending, packaging, and distribution facilities serving construction, industrial, and infrastructure sectors across Southeast Asia.

Financials & More

Ducol Organics reported a significant growth in consolidated revenue from operations of over 67 percent YoY, from Rs. 38.6 crores in H1 FY25 to Rs. 64.5 crores in H1 FY26. Likewise, its net profit increased during the same period from Rs. 2.5 crores to Rs. 2.82 crores, representing a rise of around 12 percent YoY.

Ducol Organics and Colours Limited is engaged in the business of offering a range of pigment dispersions and colour solutions for various industries like paints, inks, textiles, detergents, paper, rubber, plastics, leather, soaps, and FMCG. It manufactures and sells pigment dispersion, preparations, concentrates, paste colorants and master batches. 

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