Are you thinking about chemical stocks in India? You’re not alone! The Indian chemical sector is booming and offers exciting investment opportunities. But with so many chemical sector stocks, where do you begin?
This guide breaks it down, making it easier to understand more about the chemical stocks in India. It also examines their performance and the company’s fundamentals.
What are Chemical Stocks?
Chemical stocks represent companies that manufacture, distribute, or sell chemicals. These can be basic chemicals like fertilizers or complex specialty chemicals used in various industries.
Chemical stocks can be cyclical, reflecting economic ups and downs. During growth periods, demand for chemicals rises, pushing the prices of chemical sector stocks up. Conversely, in downturns, demand falls, impacting the performance of chemical stocks.
Top Chemical Stocks in India (2024)
| Chemical Stocks Name | Market Cap in Crores as of 4.03.24 |
| Pidilite Industries Ltd | ₹ 1,37,477 |
| Linde India Ltd. | ₹ 29,832 |
| Deepak Nitrite Ltd | ₹ 29,832 |
| Solar Industries India Ltd | ₹66,058 |
| SRF Ltd | ₹ 70,306 |
| PI Industries Ltd | ₹55,133 |
| Alkyl Amines Chemicals Ltd. | ₹ 10,865 |
| Balaji Amines Ltd | ₹ 7,133 |
| Deepak Fertilizers and Petrochemicals Corp Ltd. | ₹ 6,390 |
| Navin Fluorine International Ltd | ₹ 15,177 |
Pidilite Industries Ltd:
Pidilite Industries is a prominent player in the chemical stocks segment and is known for its diverse range of adhesives, sealants, and construction chemicals.
| Market Cap | CMP (as of 4th March, 2024) | All-Time High Level | PE Ratio | 5 yr CAGR Return | ROCE(FY 2023-24) |
| ₹ 1,37,477 Cr | ₹2703 | ₹2805 | 80.3 | 19% | 23.8% |
In the December 31, 2023 quarter, Pidilite Industries reported revenue from operations at ₹3130 crores. Comparing year-over-year quarterly revenues, the company demonstrated a positive growth of 4.40%, with total revenue from operations amounting to ₹2998 crores for the same quarter last year.
The company’s Profit After Tax (PAT) for the quarter reached ₹511 crores, reflecting a significant 79% increase from the ₹308 crores recorded for the same quarter last year. With its positive financial performance, solid revenue generation, and profitability metrics, Pidilite is a critical player in the chemical industry.
Deepak Nitrite Ltd
Deepak Nitrite Limited is a chemical manufacturing entity that organizes its operations into distinct segments: Bulk Chemicals and Commodities (BCC), Fine and Specialty Chemicals (FSC), and Fluorescent Whitening Agents (FWA).
| Market Cap | CMP (as of 4th March, 2024) | All-Time High Level | PE Ratio | 5 yr CAGR Return | ROCE(FY 2023-24) |
| ₹ 29,832 Cr | ₹2187 | ₹2521 | 37.7 | 55% | 29.7% |
In the quarter ending December 30, 2023, the company recorded a total income of ₹2022.7 crores, slightly up from ₹2004.4 crores in the corresponding quarter of the previous year. The profit recorded for the quarter was ₹202 crores, reflecting a 3% decrease compared to the ₹209 crores recorded for the same quarter last year.
Linde India Ltd
Linde India Limited, previously known as BOC India Limited, specializes in producing liquified or compressed inorganic industrial or medical gases and constructing utility projects.
| Market Cap | CMP (as of 4th March, 2024) | All-Time High Level | PE Ratio | 5 yr CAGR Return | ROCE(FY 2023-24) |
| ₹ 46,383 Cr | ₹5432 | ₹6886 | 110 | 59% | 20.8% |
The quarter ending on December 31st saw revenue from operations reaching ₹706 crores, indicating a marginal increase of 1.3% compared to the revenue of ₹697 crores recorded for the same quarter last year. The profit surged by nearly 10% in the latest quarter, reaching ₹120 crores, compared to the ₹110 crores reported for the corresponding quarter last year.
Solar Industries India Ltd
Solar Industries India Limited is an explosives manufacturing entity specializing in producing, distributing, and exporting industrial explosives and initiating systems.
| Market Cap | CMP (as of 4th March, 2024) | All-Time High Level | PE Ratio | 5 yr CAGR Return | ROCE(FY 2023-24) |
| ₹ 66,058 Cr | ₹7300 | ₹8499 | 81.8 | 46% | 34.7% |
For the quarter ending on December 31, 2023, operational income stood at ₹1,440.05 crores, reflecting a decrease of nearly 21% compared to the total operational income of ₹1818.99 crores reported for the same quarter last year.
However, there was a marginal rise in the Profit After Tax (PAT) of 1.1%, with a recorded figure of ₹221.94 crores for the recent quarter compared to ₹219.42 crores for the corresponding quarter last year.
PI Industries Limited
PI Industries Limited is a leading company in the agricultural solutions sector. Renowned for its innovation and quality, PI Industries specializes in agrochemicals, custom synthesis, and manufacturing solutions.
| Market Cap | CMP (as of 4th March, 2024) | All-Time High Level | PE Ratio | 5 yr CAGR Return | ROCE(FY 2023-24) |
| ₹55,133 Cr | ₹3631 | ₹4011 | 34.6 | 31% | 21.7% |
The company reported a total revenue of ₹1953.6 crores from operations, marking an increase of nearly 17.4% compared to the ₹1663.4 crores it registered for the same quarter last year. The company posted a remarkable profit of ₹448.6 crores, reflecting a 27.5% increase compared to the ₹351.8 crores it recorded for the same quarter last year.
Why Invest in Individual Stocks When You Have Readymade Portfolios to Invest in?
While individual chemical stocks offer customization, ready-made portfolios like small cases provide:
- Expert curation: Invest in a basket of carefully chosen chemical sector shares.
- Diversification: Spread your risk across multiple companies within the chemical sector.
- Convenience: Manage your investment with a single click.
Factors to Consider Before Investing in Chemical Stocks:
- Company fundamentals: Analyze financial health, growth prospects, and management quality.
- Industry trends: Understand demand drivers and potential risks within the chemical sector.
- Valuation: Compare a stock’s price to its underlying value to ensure fair pricing.
Benefits of Investing in Chemical Stocks
- Growth potential: The Indian chemical industry may grow significantly in the coming years.
- Diversification: Chemical stocks in India can add variety and balance to your investment portfolio.
- Dividend income: Some chemical sector shares offer attractive dividend payouts.
Future of Chemical Industry in India
The future of the Indian chemical industry looks bright, driven by:
- Increasing demand from domestic and international markets.
- Government initiatives towards infrastructure development and manufacturing growth.
- Focus on innovation and sustainability within the chemical sector.
Investing in chemical stocks within India presents promising avenues for growth and stability amidst the evolving market dynamics. With the sector experiencing ongoing innovation and expansion, leading chemical stocks exhibit good potential for investors pursuing long-term value.
These chemical stocks thrive on innovation, adaptability, and strong fundamentals, making them appealing options for investors to diversify their portfolios. As the demand for chemicals across various industries rises, the outlook for chemical stocks remains optimistic.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
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FAQ
Is it the right time to buy chemical stocks?
Predicting market timing is difficult. Chemical stocks in India offer potential due to growth in key sectors like agriculture, pharmaceuticals, and infrastructure. However, factors like current valuations, global economic trends, and specific company performance should be considered before investing. Conduct thorough research before making any decisions.
What is the future of chemical companies?
India's chemical future looks bright, with a projected market size of $300 billion by 2025. Growth in agriculture, pharma, and infrastructure fuels demand. Chemical stocks could benefit, but valuations, global trends, and individual company performance also matter.
Is the chemical sector a good investment?
India's chemical sector is fueled by rising demand from agriculture, pharma, and infrastructure. However, before investing in chemical stocks, it is advisable to consider risks such as market volatility, global changes, and individual company performance.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.