As Crude Oil has been in focus lately with prices of Brent Crude Oil Futures fluctuating, the world is paying special attention to oil, petroleum, and petroleum products. Companies related to petroleum and petroleum products are currently in focus. Thus, this would be an excellent opportunity to take trades in the stocks of these companies. This requires a basic understanding of the current scenario of crude oil and some background on what the company does so we can take positions based on oil price movements. In this blog, we will be discussing the top petrochemical stocks in India.
The Organization of Petroleum Exporting Countries projected robust increase in crude oil demand for 2023 in their Monthly Oil Market Report. The International Energy Agency also mentioned that they expect crude oil demand to rise next year. These positive demand outlooks bode well for petrochemical stocks and might lead to higher revenues for the companies and better earnings per share for shareholders.
India imports crude oil for its requirements and most of it is currently imported from Russia. Due to the recent price cap set on Russian oil by the G7 countries and due to European Union’s ban on Russian oil, India has been buying this oil at more affordable prices. As crude oil becomes more affordable, the input costs for petrochemical stocks will decrease, pulling up their profit margins.
Top Petrochemical Stocks in India
Let us look at the list of best petrochemical stocks to help us decide which ones are good investment opportunities. We will make our decision based on financial ratios since we use Fundamental Analysis for long-term investment decisions.
Net profit margin, 3 years CAGR net profit, return on equity, debt to equity ratio, earnings per share, price to earnings ratio, dividend per share, promoter’s shareholding, market capitalization, and change in revenue and net profit are the fundamental analysis parameters we will take into consideration to select best cement stocks for long term investments.
| Name of Stock | Ticker (on NSE) | Net Profit Margin (%) | ROE (%) | Debt to Equity Ratio | EPS (₹) |
| Castrol India | CASTROLIND | 17.25 | 49.07 | 0.14 | 7.66 |
| Supreme Petrochem | SPLPETRO | 11.59 | 44.77 | 0.00 | 67.93 |
| Savita Oil Tech | SOTL | 8.39 | 19.56 | 0.00 | 45.53 |
| Gulf Oil Lubricants India | GULFOILLUB | 9.63 | 20.24 | 0.34 | 41.89 |
| Panama Petrochem | PANAMAPET | 10.80 | 29.98 | 0.04 | 38.08 |
| Tide Water Oil Co India | TIDEWATER | 7.33 | 17.07 | 0.02 | 72.32 |
| Bhansali Engg Polymers | BEPL | 25.06 | 35.66 | 0.00 | 21.10 |
| DCW | DCW | 4.37 | 13.40 | 0.69 | 4.12 |
| INEOS Styrolution India | INEOSSTYRO | 14.80 | 37.66 | 0.01 | 183.41 |
| Manali Petrochemicals | MANALIPETC | 22.79 | 36.98 | 0.02 | 22.16 |
Castrol India Ltd.
Castrol India Ltd is one of the best petrochemical stocks for long term. It is a subsidiary of Castrol Ltd. The company manufactures and markets automotive and industrial lubricants. It serves the automotive, industrial, marine, and oil and gas industries.
Castrol India has a market capitalization of ₹12,794.30 Cr and a P/E Ratio of 15.79. The Dividend yield is 4.25% and the 0Promoter’s shareholding is 51%. The company’s revenue increased by 9.67% and net profit decreased 9.22% in the July to September 2022 quarter.
Supreme Petrochem
Supreme Petrochem Ltd is a small cap company that manufactures and sells specialty polymers, polystyrene, extruded polystyrene foam boards, etc. in India and internationally. It provides general purpose, high impact, and expandable polystyrene products.
Supreme Petrochem has a market capitalization of ₹7103.26 Cr and a P/E Ratio of 11.12. The Dividend yield is 0.95% and the Promoter’s shareholding is 64.14%. The company’s revenue fell by 16.9% and net profit dropped 68.78% in the July to September 2022 quarter.
Savita Oil Technologies
Savita Oil Technologies Ltd. was formerly known as Savita Chemicals Ltd. It manufactures and markets petroleum products such as lubricating oils, white oil, petrolatum, petroleum jellies, transformer oils, liquid paraffin, etc. It also manufactures wax and derivatives of wax.
Savita Oil Technologies has a market capitalization of ₹2180.12 Cr and a P/E Ratio of 7.73. The Dividend yield is 1.58% and the Promoter’s shareholding is 71.81%. The company’s revenue dropped by nearly 4% and net profit fell 22.99% in the July to September 2022 quarter.
Gulf Oil Lubricants India
Gulf Oil Lubricants India Ltd manufactures lubricants for automobiles and industrial sectors. They manufacture engine oil, gear oils, greases, thermic fluids, slideway oils, marine lubricants, turbine oils, hydraulic oils, etc, It primarily exports its products to Bangladesh, Indonesia, Qatar, Africa, and Singapore. The company was formerly called Hinduja Infrastructure Limited.
Gulf Oil Lubricants India has a market capitalization of ₹2228.32 Cr and a P/E Ratio of 9.71. The Dividend yield is 1.10% and the Promoter’s shareholding is 72.02%. The company’s revenue increased by almost 2% and net profit slipped 5.45% in the July to September 2022 quarter.
Panama Petrochem
Panama Petrochem Ltd. manufactures specialty petroleum products including paraffin oil, petroleum jellies, industrial oils, transformer oils, etc. It provides its products to industries like textile, pharmaceuticals, power, printing, rubber, etc.
Panama Petrochem has a market capitalization of ₹2185.94 Cr and a P/E Ratio of 9.02. The Dividend yield is 0.18% and the Promoter’s shareholding is 70.36%. The company’s revenue gained 11.25% and net profit rose by 4.69% in the July to September 2022 quarter.
Tide Water Oil Co (India)
Tide Water Oil Co (India) operated primarily under the Veedol brand. It manufactures, engine oils, greases, transmission oils, brake oils, coolants, and other vehicle care products. It also manufactures specialty industrial lubricants, thermic fluids, etc. The company also generates wind power.
Tide Water Oil Co (India) has a market capitalization of ₹1811.83 Cr and a P/E Ratio of 14.83. The Dividend yield is 5.29% and the Promoter’s shareholding is 57.28%. The company’s revenue inched up by 2.28% and net profit plummeted 38.71% in the July to September 2022 quarter.
Bhansali Engg Polymers
Bhansali Engg Polymers focuses mainly on the production of resins which are highly specialized engineering thermoplastics. Its products are used for electric applications, automotive sector, construction, packaging, healthcare sector, etc.
Bhansali Engg Polymers has a market capitalization of ₹1844.87 Cr and a P/E Ratio of 7.75. The Dividend yield is 2.70% and the Promoter’s shareholding is 56.64%. The company’s revenue saw an increase of 6.23% and net profit dropped 12.77% in the July to September 2022 quarter.
DCW
DCW operates majorly in the PVC (polyvinyl chloride) and synthetic rutile segment. It specializes in specialty chemicals, and commodity chemicals. Their products are used as ingredients for manufacturing of detergents, pharmaceuticals, fertilizers, pigments, etc.
DCW has a market capitalization of ₹1477.25 Cr and a P/E Ratio of 8.08. The Dividend yield is 0.08% and the Promoter’s shareholding is 44.85%. The company’s revenue dropped by 9.24% and net profit decreased 15.52% in the July to September 2022 quarter.
INEOS Styrolution
INEOS Styrolution focuses on manufacturing of engineering thermoplastics, operating in the Specialties and Polystyrene segments. It produces resins and polymers that are used in consumer durables, office equipment, lightings, refrigerators, cosmetic jars, food packaging products, automobile interiors & exteriors, etc.
INEOS Styrolution has a market capitalization of ₹1448.70 Cr and a P/E Ratio of 5.64. The Dividend yield is 36.05% and the Promoter’s shareholding is 61.19%. The company’s revenue fell by 15.41% and net profit plunged 73.26% in the July to September 2022 quarter.
Manali Petrochemicals
Manali Petrochemicals produces petrochemical products used in adhesives, automobiles, refrigeration, furniture, coating, sealants, textile industries, etc. Some of its products also find use in the pharma, fragrance, and food industries.
Manali Petrochemicals has a market capitalization of ₹1423.29 Cr and a P/E Ratio of 4.89. The Dividend yield is 3.02% and the Promoter’s shareholding is 44.86%. The company’s revenue slid 12.04% and net profit fell plummeted 69.44% in the July to September 2022 quarter.
Above, we have summarized information regarding some of the best petrochemical stocks in India. Investing in petrochemical stocks that are currently in focus will surely lead to good returns on your investment.
Also Read –
Fastest Growing Companies in India 2022
