The chemical industry is the backbone of the Indian economy and contributes 7% to its GDP. The demand for efficient chemical supply in India has skyrocketed in recent times due to the increasing demand for processed food, personal and home care solutions and the growing portable energy requirement. As a result, Indian speciality chemical companies are expanding their capacities to cater to the rising demand which has given rise to some of the best chemical stocks in India in recent years.
Government policies such as production-linked incentive (PLI) schemes are also being introduced to promote the domestic manufacturing of agrochemicals. Under the Union Budget 2021-22, the government allocated ₹233.14 crores for the department of chemicals and petrochemicals. India also holds a very strong position in the exports and imports of chemicals in the global economy. 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.
This realization has made the top chemical stocks in India an attractive investment option. Be it small-cap, mid-caps, or large-cap stocks, these chemical sector stocks have seen a trend of outperforming many other stocks. This article has all the information an investor needs if they are planning on investing in the Indian chemical sector and are looking for the best chemical stocks in India.
Top 10 Best Chemical Stocks in India
Let us look at the top 10 best chemical stocks in India to help us decide which ones to invest in.
|Name of Stock||Ticker (on NSE)||Market Capitalization||Net Profit Margin||ROCE||EPS|
|Pidilite Industries||PIDILITIND||₹1,17,950 Cr||12.04%||22.86%||₹23.76|
|Gujarat Fluorochemicals||FLUOROCHEM||₹37,811 Cr||19.62%||22.60%||₹70.63|
|Aarti Industries||AARTIIND||₹27,048 Cr||18.67%||22.37%||₹36.06|
|Solar Industries India||SOLARINDS||₹25,624 Cr||11.53%||27.49%||₹48.77|
|Deepak Nitrite||DEEPAKNTR||₹24,813 Cr||15.68%||39.86%||₹78.20|
|Vinati Organics||VINATIORGA||₹22,452 Cr||21.45%||23.38%||₹33.73|
|Tata Chemicals||TATACHEM||₹22,205 Cr||9.34%||6.55%||₹49.37|
|Navin Fluorine International||NAVINFLUOR||₹21,022 Cr||18.10%||17.29%||₹53.12|
Pidilite Industries Ltd. – Best Chemical Stocks in India
Pidilite Industries Ltd, founded in 1959, is the leading adhesive manufacturing company in India. Its product range also includes sealants, construction chemicals, waterproofing solutions, polymers, industrial resins, and adhesives used for arts and crafts.
The major brands of Pidilite Industries are Fevicol, Fevicol MR, Dr Fixit, Fewikwik, M-Seal, Fevistik, Hobby Ideas, and Fevicryl. The company also has several joint ventures and subsidiaries such as ICA, Nina Percept, CIPY, Jowat SE, and Huntsman Advanced Materials Solutions Pvt. Ltd, etc. These joint ventures and acquisitions have helped strengthen the company’s retail as well as BTB operations.
The company’s revenue increased by 36% and net income increased by 7% in the fiscal year ended 31st March 2022. The 3-year Net Profit CAGR is 13.67%.
UPL Ltd, formerly known as United Phosphorus Limited and founded in 1969, offers sustainable agriculture solutions in India and internationally. It manufactures and markets agrochemicals, chemical intermediaries, industrial chemicals, and speciality chemicals. The company also offers crop protection solutions to farmers.
The company has a strategic collaboration with Chr. Hansen A/S, a bioscience company in Denmark, for developing microbial-based bio-solutions. The primary source of revenue for UPL is conventional agrochemical products and seeds. The company’s agrochemical products include herbicides, fungicides, insecticides, rodenticides, plant growth regulators, etc. These products are sold in more than 150 countries across the world. They have around 1400 patents, 25 R&D facilities, and 43 manufacturing plants.
The company’s revenue increased by 20% and net income applicable to common stockholders increased by 30% in the fiscal year ended 31st March 2022. The 3-year Net Profit CAGR is 66.03%.
Gujarat Fluorochemicals Ltd.
Gujarat Fluorochemicals Ltd., founded in 1987, is a chemical company that has expertise in Fluorine Chemistry. The company manufactures Fluoropolymers, Fluorospecialities, Refrigerants and commodity chemicals. Its products include PTFE, PTFE Additives, FKM, EDFA, BTFM, refrigerant gases, etc. These are used as raw materials or for chemical processes in various industries such as pharma, agrochemicals, plastics, etc.
The major brands of Gujarat Fluorochemicals are INOFLON, FLUONOX, INOFLAR, INOLUB, and REFRON. The company is a member of the Indian Chemical Council (ICC) and is a signatory to the United Nations Global Compact (UNGC).
The company’s revenue increased by 49% in the fiscal year ended 31st March 2022. The 3-year Net Profit CAGR is -21.10%.
Aarti Industries Ltd.
Aarti Industries Ltd, founded in 1984, is the leading Indian company in the manufacturing of pharmaceuticals and speciality chemicals.
The company manufactures more than 200 products including polymers, additives, agrochemicals, dyes, paints, pigments, printing inks, fuel additives, resins, Benzene products, and Sulphuric Acid products, Toluene products, surfactants, active pharmaceutical ingredients and intermediates, etc. These products are used in the manufacturing processes of various other industries. The company has state-of-the-art manufacturing facilities across the country. The speciality chemical business contributes to 83% of its portfolio.
The company’s revenue increased by 55% in the fiscal year ended 31st March 2022. The 3-year Net Profit CAGR is 61.03%.
Atul Ltd., founded in 1947, is a chemical company with products falling under two categories: Life Science Chemicals and Performance and Other Chemicals. The company started off as a dyestuff manufacturer but has expanded over the years through mergers, acquisitions, and R&D initiatives.
The company now produces over 900 products and has 140 brands. It operates in the following key areas: aromatics, polymers, pharma intermediates, and crop protection. This has increased the profitability of the business. Exports contributed 50% to its total sales in 2022.
The company’s revenue increased by 36% in the fiscal year ended 31st March 2022. The 3-year Net Profit CAGR is 17.65%.
Solar Industries Ltd.
Solar Industries Ltd., founded in 1995, is an industrial explosives manufacturer. Its products are mainly utilized in the mining and infrastructure sector. The company also manufactures products for the defence sector, such as military explosives, bombs, torpedoes, rockets, warheads for rockets and missiles, detonators, ignitors, hand grenades, medium and large calibre bullets, etc.
The company has recently entered into the Propulsion System Business for space applications.
The company’s revenue increased by nearly 57% in the fiscal year ended 31st March 2022. The 3-year Net Profit CAGR is 28.28%.
Deepak Nitrite Ltd.
Deepak Nitrite Ltd., founded in 1970, is a chemical manufacturing company that manufactures inorganic, organic, and speciality chemicals. It also produces intermediates for the manufacturing of industrial explosives, polymers, paints, cosmetics, etc. It has more than 100 products.
The company’s revenue comes from three different streams: Phenolics, performance products, and speciality and basic chemicals. It has captured a 70% market share in sodium nitrite, sodium nitrate, and NitroToluenes, making it the leading player in this segment.
The company has recently become debt-free. The company’s revenue increased by 56% in the fiscal year ended 31st March 2022. The 3-year Net Profit CAGR is 147.83%.
Vinati Organics Ltd.
Vinati Organics Ltd., founded in 1989, focuses on the manufacturing of monomers and speciality organic intermediaries. Its products include speciality aromatics, speciality monomers, butyl phenols, etc.
Their products are utilized in several sectors that produce food additives, flavours, cosmetic additives, fragrances, agrichemicals, construction chemicals, adhesives, elastomers, cleaning materials, lubricants, industrial gases, colours, paints, surfactants, polymers as well as textile auxiliaries. Other industrial uses of these chemicals include applications in aerospace, automotive, and manufacturing sector.
The company’s revenue increased by nearly 69% in the fiscal year ended 31st March 2022. The 3-year Net Profit CAGR is 10.78%.
Tata Chemicals Ltd.
Tata Chemicals Ltd., founded in 1939, is a part of the Tata Group and is the third largest soda ash producer in the world and the best chemical stocks in India. The company has two main business verticals: Basic Chemistry and Specialty Chemistry.
The Basic Chemistry business comprises manufacturing Halogen products: chlorine and bromine-based products; Salt products: salt, industrial salt, gypsum, etc.; and Alkali products: soda bicarbonate, soda ash, crushed refined soda, caustic soda, etc. The Specialty Chemistry business focuses on Agro Science, Nutritional Science, and Material Science.
The products are used for agriculture, animal nutrition, construction (cement), chemical processes, oral care and cosmetics, paints, pharmaceuticals, soaps and detergents, etc. They also find applications in industries such as food, glass, textile, metals, etc. The company has 13 manufacturing plants across the world.
The company’s revenue increased by nearly 24% in the fiscal year ended 31st March 2022. The 3-year Net Profit CAGR is 5.07%.
Navin Fluorine International Ltd.
Navin Fluorine International Ltd., founded in 1967, is a chemical company that manufactures and markets refrigerant gases, inorganic fluorides, speciality fluorochemicals and other fluorinated compounds.
Their products are mainly used in sectors involved with pharmaceuticals, agrochemical products, oil and gas, stainless steel manufacturing, electronics, abrasives, solar energy, refrigeration, air conditioning, etc.
The company also offers a custom synthesis and contract research services for developing new products, processes and novel technologies. It has domain expertise, development skills and the infrastructure required to meet and exceed customer expectations.
The company’s revenue increased by 23% in the fiscal year ended 31st March 2022. The 3-year Net Profit CAGR is 33.57%.
Above, we have summarized information regarding the top chemical companies listed in India. The growth shown by the chemical sectors and the increasing profits has made it an attractive investment option for investors.
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