Last Updated on Oct 4, 2023 by Vyshakh
The Indian chemical industry, with its diverse range of over 80,000 commercial products, offers a plethora of investment opportunities. With a current valuation of around $220 billion, the industry is projected to grow to $304 billion by 2025. Here, we provide the best chemical stocks in India propelled by the high demand for chemicals in various sectors such as food processing, pharmaceuticals, construction, and automobiles. This list is based on 5yr CAGR and many other fundamental factors.
Table of Contents
Best chemical stocks in India in 2023
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio (%) | 5Y CAGR (%) | 1Y Return (%) | ROCE |
| Fertilisers And Chemicals Travancore Ltd | Fertilisers & Agro Chemicals | 32,059.18 | 495.45 | 52.30 | 64.69 | 334.41 | 194.84 |
| Linde India Ltd | Commodity Chemicals | 42,576.87 | 4,992.35 | 79.13 | 63.18 | 35.73 | 18.00 |
| Alkyl Amines Chemicals Ltd | Specialty Chemicals | 12,466.69 | 2,439.00 | 54.52 | 56.26 | -23.50 | 25.20 |
| Deepak Nitrite Ltd | Commodity Chemicals | 27,901.92 | 2,045.70 | 32.75 | 53.26 | 3.62 | 27.05 |
| Navin Fluorine International Ltd | Specialty Chemicals | 22,576.66 | 4,554.35 | 60.18 | 47.05 | 4.70 | 17.40 |
| SRF Ltd | Diversified Chemicals | 66,728.19 | 2,251.10 | 30.86 | 45.45 | -8.25 | 21.92 |
| Fine Organic Industries Ltd | Specialty Chemicals | 13,818.91 | 4,507.15 | 22.36 | 41.16 | -18.28 | 85.83 |
| PI Industries Ltd | Diversified Chemicals | 55,514.76 | 3,660.10 | 45.15 | 35.21 | 18.70 | 20.33 |
| Vinati Organics Ltd | Specialty Chemicals | 19,422.72 | 1,889.70 | 42.41 | 31.28 | -14.23 | 32.04 |
| Balaji Amines Ltd | Specialty Chemicals | 7,138.75 | 2,203.25 | 21.93 | 30.68 | -37.82 | 31.92 |
Note: The data is of date 2nd August 2023. The top 10 chemical stocks are based on the following parameters and sorted using Tickertape Stock Screener –
- Sub-sectors: Diversified Chemicals, Fertilizers & Agro Chemicals, Speciality Chemicals, Commodity Chemicals
- Stock Universe: Nifty 500
- 5-yr CAGR: Sorted from highest to lowest
- Market cap
- 1-yr Return
- ROCE
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, making the chemical industry stocks high in demand. Let’s take a deeper look at the financials of the top 5 chemical stocks listed above. Also, read about the factors to consider before investing in the chemical industry and its future. Below is the list of best chemical stocks in India based on industry wide regarded fundamentals. However, investing in this sector requires careful analysis of the companies and their performance and we request you to do your own research. This is NOT FInancial Advice!
Best chemical stocks in India
1. Fertilisers And Chemicals Travancore Ltd
Incorporated in the year 1943, Fertilisers And Chemicals Travancore Ltd stands as one of the biggest fertiliser enterprises in the country. The company’s main products are Ammonia, Sulphuric Acid, Ammonium Phosphate-Sulphate (FACTAMFOS), Ammonium Sulphate, Zincated Ammonium Phosphate, Caprolactam, and also complex fertilisers.
- As of 2nd August 2023, the company’s 5-yr CAGR is 64.69%, the highest in the list of chemical companies listed in India.
- Over the last 5 yrs, the revenue growth of the stock has averaged 27.82%, vs the industry average of 20.23%.
- Over the last 5 yrs, the net income has averaged 147.19%, vs the industry average of 22.23%.
- Over the last 5 yrs, free cash flow growth has been 29.97%, vs the industry average of -16.29%.
Know more about the Financial Performance of Fertilisers And Chemicals Travancore Ltd.
2. 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.
- As of 2nd August 2023, the company’s 5-yr CAGR is 63.18%.
- Over the last 5 yrs, the revenue growth has averaged 13.98%, vs the industry average of 15.88%.
- Over the last 5 yrs, the net income of the company has averaged 579.46%, vs the industry average of 20.94%.
- The stock is among the top stocks in terms of performance, as stated by the Tickertape Scorecard feature.
Know more about the Financial Performance of Linde India Ltd
3. 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.
- As of 2nd August 2023, the company’s 5-yr CAGR is 56.26%.
- Over the last 5 yrs, the revenue growth of Alkyl Amines Chemicals Ltd has averaged 22.66%, vs the industry average of 12.83%.
- Over the last 5 yrs, the net income of the company has averaged 40.46%, vs the industry average of 23.09%.
- Over the last 5 yrs, the debt-to-equity ratio has been 15.39%, vs the industry average of 35.65%.
- The stock shows good signs of profitability and efficiency on the Tickertape Scorecard feature.
Know more about the Financial Performance of Alkyl Amines Chemicals Ltd
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).
- As of 2nd August 2023, the company’s 5-yr CAGR is 53.26%.
- Over the last 5 yrs, the revenue growth of the company has averaged 39.28%, vs the industry average of 15.88%.
- Over the last 5 yrs, the net income has averaged 83.2%, vs the industry average of 20.94%.
- Over the last 5 yrs, the debt-to-equity ratio of Deepak Nitrite Ltd has been 43.5%, vs the industry average of 37.1%.
Know more about the Financial Performance of Deepak Nitrite Ltd
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, and some basic building blocks of fluorides and speciality organofluorines.
- As of 2nd August 2023, the company’s 5-yr CAGR is 47.05%.
- Over the last 5 yrs, the debt-to-equity ratio has been 9.59%, vs the industry average of 35.65%.
- Over the last 5 yrs, the revenue growth has averaged 16.77%, vs the industry average of 12.83%.
- Over the last 5 yrs, the net income of the company has averaged 32.95%, vs the industry average of 23.09%.
Know more about the Financial Performance of Navin Fluorine International Ltd
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.
Conclusion
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. For this purpose. #TickertapeHaiNa! Tickertape Stock Screener offers 200+ filters, custom filters, custom universe, and so much more to perform a thorough analysis of any stock. Further, the Scorecard on every asset page allows you to dive deeper into the stock’s performance, making your analysis quick and smooth. Become a Pro Member now!
FAQs
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
Easy, right? Explore Tickertape Stock Screener now!
2. Which is the best chemical stock in India?
- Fertilisers And Chemicals Travancore Ltd
- Linde India Ltd
- Alkyl Amines Chemicals Ltd
- Deepak Nitrite Ltd
- Navin Fluorine International Ltd
The above-listed stocks are the top 5 listed chemical companies 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.
As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
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