10 Best Chemical Stocks in India 2022

One Indian sector which is benefiting greatly from the China plus one sentiment is the chemical sector. In the backdrop of this, let us discuss about the top ten chemical companies in India that investors can look upon.

Best Chemical Stocks in India

Following are the 10 best chemical stocks in India:

1. Deepak Nitrite Limited

Deepak Nitrite Limited is involved in manufacturing of chemicals. The company is based in Gujarat. It has a 70% market share in manufacturing of Sodium nitrate and NitroToluenes in India.

The company’s product offerings include phenolics (58%), basic chemicals (17%), fine and specialty chemicals (18%), and performance products (7%).

The company’s revenue from operations have frown at a CAGR of 26% over the last five years, whereas net profits grew at a CAGR of 65% over the same tenure.

2. United Phosphorous Limited

United Phosphorous Limited is involved in the business of manufacturing agrochemicals, industrial chemicals, and sale of field crops and vegetable seeds.

The company has presence in more than 138 nations and is the fifth largest agrochemical company.

The company’s revenues have grown at a CAGR of 22.32% over the last five years, whereas net profits grew at a CAGR of 26% over the same tenure.

3. SRF Limited

SRF Limited was established in the year 1970. The company is engaged in the manufacturing of industrial and specialty chemicals.

The company’s portfolio includes Fluorochemicals, specialty chemicals, packaging films, technical textiles, and coated and laminated fabrics.

The company’s current market capitalization stands at ₹72,000 crores. It earned a return on capital employed of 18% for FY21.

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4. Aarti Industries Limited

Aarti Industries Limited is another leading manufacturer of specialty chemicals and pharmaceuticals with presence across the globe.

The chemicals which the company manufactures are used in manufacturing of pharmaceuticals, agrochemicals, polymers, additives, surfactants, pigments, and dyes.

Over the last five years, the company’s revenues have grown at a CAGR of 8.43%, whereas net profits grew at a CAGR of 14.83% over the same tenure. The company’s return on capital employed stood at 13.15% as of FY21.

5. Gujarat Fluorochemicals Limited

Gujarat Fluorochemicals was incorporated in 2018. It was initially known as Inox Fluorochemicals Limited.

The company is a leading producer of fluoro-polymers, fluoro-specialities, chemicals and refrigerants in India.

The company is among the top five global players and exports its products to Europe, Japan, and Asia. The company’s return on capital employed for FY21 stood at 11.4%.

6. Balaji Amines Limited

Balaji Amines Limited is one of the largest manufacturers of aliphatic amines in India. It specializes in manufacturing methylamines, ethylamines, and derivatives of specialty chemicals and pharma excipients.

The company has a product portfolio of over 25 different products. The company has grown its revenues at a CAGR of 15.32% over the past five years, whereas net profits grew at a CAGR of 33.41% over the same tenure. The company’s return on capital employed for FY21 stood at 35.58%.

7. Alkyl Amines Chemicals Limited

Alkyl Amines Chemicals Limited was set up in the year 1979 by Mr. Yogesh Kothari. The company is a leading manufacturer of aliphatic amines in India.

The company has a portfolio of more than 100 products, and most of them are developed in-house.

The company has grown its revenues at a CAGR of 23% over the last five years, whereas net profit grew at a CAGR of 38.09%. The company’s return on capital employed stood at 55% for FY21.

8. Vinati Organics Limited

Vinati Organics Limited is involved in the manufacturing of specialty organic intermediaries and monomers.

The company is a leader in manufacturing of IBB, with a 65% market share as of FY20. The company’s current market capitalization stands at 19,165 crores. Over the past five years, the company grew its revenues at a CAGR of 8.63%, whereas net profits grew at a CAGR of 15.41% over the same tenure.

The company’s return on capital employed stood at 23.80% as of FY21.

9. Tata Chemicals Limited

Tata Chemicals Limited is involved in the manufacturing of inorganic chemistry products. The company’s manufacturing plants are spread across four continents.

The company is the world’s third largest soda ash producers and India’s leading vacuum evaporated iodized salt producer.

Over the past five years, the company’s revenues have de-grown at a CAGR of 1.73%, whereas net profits de-grew at a CAGR of 7.89%. The company’s return on capital stood at 4.71% as of FY21.

10. Solar Industries India Limited

Solar Industries India Limited is a leading manufacturer of industrial explosives, which constitutes 73% of the company’s overall revenues.

The company also manufactures bulk explosives, packaged explosives, and initiating systems. The company’s current market capitalization stands at ₹21,182 crores.

Over the past five years, the company’s revenues have grown at a CAGR of 15.33%, whereas net profits grew at a CAGR of 15.30%.

Conclusion

These were the top ten chemical companies in India that investors can consider in their portfolios. But it is important to do one’s own due diligence on the risks involved, company’s business fundamentals, and the current market valuations and scenario before investing.

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Vineet Nandwani

I am from a commerce background. Having completed my Bachelors of Business Administration (BBA) in 2020, I went on to pursue the Chartered Financial Analyst (CFA) course, which is a professional course in finance. The course has 3 levels, and I have appeared for my level 2 exam. Besides, I have also worked at a Wealth Management Firm in Surat, Gujarat for 2 years. I am also investing in stocks and mutual funds in my personal capacity for three years. I like to remain updated about the happenings in the financial world. Email: vineet.nandwani942@gmail.com

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