Last Updated on Nov 23, 2022 by Nikitha
Chemical Industry is one of the important and fast-growing industries in India. Several primary sectors, like oil, agriculture, etc., depend on the chemical industry. Due to the high demand for chemical industry stocks, in this article, we’ve listed the best chemical stocks in India. Also, read about the factors to consider before investing in the chemical industry and its future.
Table of Contents
Top 10 chemical stocks in India
|Name||Sub-Sector||Market Cap (Rs. in cr.)||1Y Return (%)||5Y CAGR (%)||ROCE (%)|
|Rossari Biotech Ltd||Specialty Chemicals||4,411.05||-42.87||95.90||15.500|
|Alkyl Amines Chemicals Ltd||Specialty Chemicals||14,209.35||-9.60||64.72||29.32|
|Deepak Nitrite Ltd||Commodity Chemicals||28,714.14||-0.25||56.77||39.93|
|SRF Ltd||Diversified Chemicals||66,587.39||9.31||45.08||23.85|
|Navin Fluorine International Ltd||Specialty Chemicals||21,321.69||30.42||43.53||17.29|
|Linde India Ltd||Commodity Chemicals||26,241.10||25.99||42.72||22.31|
|Balaji Amines Ltd||Specialty Chemicals||9,486.85||-3.91||37.05||40.87|
|Vinati Organics Ltd||Specialty Chemicals||21,573.95||5.38||33.31||23.45|
|PI Industries Ltd||Diversified Chemicals||50,453.18||16.12||31.85||16.34|
|Privi Speciality Chemicals Ltd||Specialty Chemicals||4,691.04||-23.81||30.23||12.67|
Note: The information is dated 22nd November 2022. We have listed the top 10 chemical stocks based on the following parameters:
- Sub-sectors: Diversified Chemicals, Fertilizers & Agro Chemicals, Speciality Chemicals, Commodity Chemicals
- Stock Universe: Nifty 500
- Sorted by 5yr CAGR
- Market cap
- 1y Return
1. Rossari Biotech Ltd
Rossari Biotech is a small-cap company founded in 2009. The company is into manufacturing textile chemicals. For FY 2022, Rossari Biotech’s net profit margin is 6.53% and the total debt is Rs. 8.43 cr.
2. Alkyl Amines Chemicals Ltd
The small-cap company, Alkyl Amines Chemicals was founded in 1979. The company is into manufacturing organic and inorganic chemical compounds. For FY 2022, the company’s net profit margin is 14.44%, and the total debt is Rs. 22.80 cr.
3. Deepak Nitrite Ltd
This is a mid-cap company founded in 1970. Deepak Nitrite is into Bulk Chemicals and Commodities (BCC), Fine and Speciality Chemicals (FSC), and Fluorescent Whitening Agents (FWA). For FY 2022, the company’s net profit margin is 15.58%, and the total debt is Rs. 315.03 cr.
4. SRF Ltd
This company was founded in 1970. SRF is into manufacturing chemicals and polymers, technical textiles and packaging films. For FY 2022, the company’s net profit margin is 15.05%, and the total debt is Rs. 3,655.19 cr.
5. Navin Fluorine International Ltd
Navin Fluorine International is a mid-cap company, which was established in 1967. The company focuses on fluorine chemistry, producing refrigeration gases, some basic building block fluorides and specialty organofluorines. For FY 2022, the company’s net profit is 17.63%, and the total debt is Rs. 120.82 cr.
6. Linde India Ltd
Formerly known as BOC India Limited, Linde India was founded in 1935. The company manufactures liquefied or compressed inorganic industrial or medical gases and construction of utility projects. For FY 2022, the net profit of Linde India is 20.72%, and the total debt is Rs. 24.29 cr.
7. Balaji Amines Ltd
The mid-cap company founded in 1988, is into manufacturing Aliphatic Amines, their derivatives and specialty chemicals. For the FY 2022, Balaji Amines has a net profit of 15.83% and the total debt is Rs. 100.65 cr.
8. Vinati Organics Ltd
Vinati Organics was founded in 1989. The company is into manufacturing organic and inorganic chemical compounds, specialty organic intermediates and monomers. For the FY 2022, Vinati Organics has a net profit of 20.68% and the total debt is Rs. 18.40 cr.
9. PI Industries Ltd
PI Industries was established in 1946. They are involved in the manufacturing and distribution of agrochemicals. For FY 2022, the company’s net profit margin is 15.61%, and the total debt is Rs. 316.30 cr.
10. Privi Speciality Chemicals Ltd
Formerly known as Fairchem Speciality Limited, Privi Speciality Chemicals is an India-based company founded in 1985. The company is into manufacturing oleo chemicals, aroma chemicals and intermediate neutraceuticals. For FY 2022, Privi Speciality Chemicals’ net profit margin is 6.76%, and the total debt is Rs. 933.02 cr.
Factors to consider before investing in chemical stocks
Though chemical stocks are considered to have fast growth, there are certain factors to know before investing in these stocks.
- Stiff competition – Usually, bulk, commodity and integrated chemicals companies can face heavy competition as the products they manufacture are the same as their competitors. This can make a customer switch from one company to another easily. The manufacturer which offers the products at a low cost establishes the market price, and every other company in the market needs to follow that to not lose customers.
- High capital – The commodity chemical companies have a sizable manufacturing facility to run profitable operations. Also, they must reach a minimum threshold before it can even be pertinent to their industry. Hence an investor must understand that a commodity chemical sector company must have a sizable plant to maintain operations.
Future of the Indian chemical industry
The chemical industry is the most diversified industry, which covers over 80,000 chemical commercial products. It is one of India’s largest industries, valuing about $100 bn. And by 2025, the chemical sector is expected to grow to $304 bn. It is to be noted that, in 2017, the industry contributed around $2.6 tn to our country’s GDP, generated $ 30 bn in taxes for the government and provided job opportunities to more than 2 mn people across India.
Overall, the chemical sector is steadily growing with a compound yearly growth rate of around 8%. The demand for chemicals is high in food processing, pharmaceuticals, construction, automobiles and other industries.
Though the demand is high and the chemical industry is growing, it still is not as developed as its competitors in other regions worldwide. And the industry can take time to become a global leader.
The demand and opportunities are putting the chemical industry stocks on the spot. However, it is important to run a detailed analysis of the companies in the sector before investing.
1. How to find the best penny chemical stocks in India?
You can find penny chemical stocks in India easily on Tickertape.
– Login to Tickertape
– Launch the Stock Screener
– Under the ‘Sector’ select ‘Diversified Chemicals’, ‘Fertilizers & Agro Chemicals’, ‘Speciality Chemicals’, and ‘Commodity Chemicals’
– Set the close price maximum to Re. 1
– Apply key metrics from the filter panel as per your preference
2. Which is the best chemical stock in India?
The above-listed stocks are the top 10 chemical stocks in India based on the 5yr CAGR. However, you can find more chemical stocks on Tickertape and select the best one based on your risk profile and investment requirement.