One Indian sector which is benefiting greatly from 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.
Contents
- 1 Best Chemical Stocks in India
- 1.1 1. Deepak Nitrite Limited
- 1.2 2. United Phosphorous Limited
- 1.3 3. SRF Limited
- 1.4 4. Aarti Industries Limited
- 1.5 5. Gujarat Fluorochemicals Limited
- 1.6 6. Balaji Amines Limited
- 1.7 7. Alkyl Amines Chemicals Limited
- 1.8 8. Vinati Organics Limited
- 1.9 9. Tata Chemicals Limited
- 1.10 10. Solar Industries India Limited
- 2 Conclusion
Best Chemical Stocks in India
Following are the 10 best chemical stocks in India
| Sl No | Stock Name | Market Capital |
|---|---|---|
| 1 | Deepak Nitrite Limited | ₹ 24,042 Cr. |
| 2 | United Phosphorous Limited | ₹ 51,536.72 Cr. |
| 3 | SRF Limited | ₹ 61,437.70 Cr. |
| 4 | Aarti Industries Limited | ₹ 25,859.23 Cr. |
| 5 | Gujarat Fluorochemicals Limited | ₹ 32,478.25 Cr. |
| 6 | Balaji Amines Limited | ₹ 9,574.01 Cr. |
| 7 | Alkyl Amines Chemicals Limited | ₹ 13,481.12 Cr. |
| 8 | Vinati Organics Limited | ₹ 20,685.40 Cr. |
| 9 | Tata Chemicals Limited | ₹ 21,017.39 Cr. |
| 10 | Solar Industries India Limited | ₹ 24,396.12 Cr. |
1. Deepak Nitrite Limited
Deepak Nitrite Limited is involved in the manufacturing of chemicals. The company is based in Gujarat. It has a 70% market share in the manufacturing of Sodium nitrate and NitroToluenes in India.
The company’s product offerings include phenolics (58%), basic chemicals (17%), fine and speciality 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.
| Market Cap | ₹ 24,042 Cr. |
| P/E | 49.45 |
| P/B | 10.66 |
| Sales Growth | -18.86% |
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.
| Market Cap | ₹ 51,536.72 Cr. |
| P/E | 43.82 |
| P/B | 7.25 |
| Sales Growth | 17.67% |
3. SRF Limited
SRF Limited was established in the year 1970. The company is engaged in the manufacturing of industrial and speciality chemicals.
The company’s portfolio includes Fluorochemicals, speciality 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.
| Market Cap | ₹ 61,437.70 Cr. |
| P/E | 40.77 |
| P/B | 8.06 |
| Sales Growth | 9.09% |
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4. Aarti Industries Limited
Aarti Industries Limited is another leading manufacturer of speciality chemicals and pharmaceuticals with a presence across the globe.
The chemicals which the company manufactures are used in the 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.
| Market Cap | ₹ 25,859.23 Cr. |
| P/E | 20.06 |
| P/B | 4.47 |
| Sales Growth | 8.07% |
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%.
| Market Cap | ₹ 32,478.25 Cr. |
| P/E | 41.95 |
| P/B | 7.7 |
| Sales Growth | 1.09% |
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 speciality 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%.
| Market Cap | ₹ 9,574.01 Cr. |
| P/E | 31.09 |
| P/B | 8.03 |
| Sales Growth | 33.59% |
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.
| Market Cap | ₹ 13,481.12 Cr. |
| P/E | 59.94 |
| P/B | 13.67 |
| Sales Growth | 25.13% |
8. Vinati Organics Limited
Vinati Organics Limited is involved in the manufacturing of speciality organic intermediaries and monomers.
The company is a leader in the 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.
| Market Cap | ₹ 20,685.40 Cr. |
| P/E | 59.67 |
| P/B | 11.32 |
| Sales Growth | -7.25% |
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 producer 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.
| Market Cap | ₹ 21,017.39 Cr. |
| P/E | 26.72 |
| P/B | 1.37 |
| Sales Growth | 2.69% |
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%.
| Market Cap | ₹ 24,396.12 Cr. |
| P/E | 93.29 |
| P/B | 17.86 |
| Sales Growth | 4.82% |
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 scenarios before investing.
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Hi,
Thanks for sharing such useful Information about Best Chemical Stocks in India.
The demand for efficient chemical supply in India has skyrocketed in recent times due to the increasing demand for processed food, and personal home care solutions and the growing portable energy requirement. Some of the top chemical stocks in India’s history have been seen in recent years and this number is sure to grow in the near future. Recently I’ had read a blog about the Best Chemical Stocks in India. They’re explained very well and provided the complete list of chemical stocks related the same.