15 Best Chemical Stocks in India to Invest
Chemical Stocks have emerged as a profitable investment in recent times. As an investor, you should always look to diversify your portfolio and by putting some money in chemical stocks, you can do just that. It is estimated that the chemical sector of India will cross the 300 billion dollar mark by the year 2025. So there is tremendous potential in these stocks. Let us now begin our list of best chemical stocks.
1. SRF Limited
SRF Limited was incorporated in 1970. It is a multi business chemical conglomerate that is engaged in manufacturing industrial and specialty raw materials. Other than specialty chemicals it had wide involvement in technical textile business, fluorochemicals and package films business. SRF is leading the market in many segments they are working in India and also have an impactful global presence. These are the most famous products of SRF Limited across the Globe –
Difluoro & Trifluoro Alkyl Intermediates (No. 1), Nylon 6 Tyre Cord (No. 2) and Belting Fabrics (No. 3).
Moreover, SRF Limited is the only Indian manufacturer that has successfully presented ozone friendly refrigerators.
2. Deepak Nitrite Limited
It was incorporated in 1970 by Chimanlal Mehta. They started their best products in 1972 which are Sodium Nitrite & Nitrate. Other than that, the company is involved in Agrochemicals, Colorants, Rubber, Speciality & Fine chemicals business segments. Its IPO was out in 1971 and was oversubscribed by 20 times. It is the reason why this company has a place on this list of the best chemical stocks in India. All the chemicals Deepak nitrite is specialized in –
Agrochemicals, Colorants, Rubber, Speciality & Fine chemicals (No. 1) 3-NOX, Acetone, DeepWhite 2B Powder, and PT(p-Toluidine) (No. 2) TFMAP and Para Cumidine (No. 3)
Recently, it became public knowledge that Deepak Nitrite Limited has almost 70% market capture over important inorganic compounds. Moreover, it was one of the earliest adopters of the ‘make in India’ idea.
3. United Phosphorus Limited
United Phosphorus Limited is the 5th agrochemical company in the world which was started in 1960 by a 25 year old chemist. It has a presence in over 138 countries today. Along with that, they have a 90% market share of the world’s food grains. It offers various specialty applicants such as –
Crop protection solutions for niche and specialty crops. Products for underserved or hard-to-control pests. Alternative application methods like seed and soil applied technologies. Bio-based products.
They have various segments other than specialty chemicals where only specialty chemicals form a 20% of contribution in exports.
4. Aarti Industries Limited
Aarti Industries Limited is focused on a process to combine chemistry competence with scale up engineering competence for the idea of sustainable future. They have two mainstream segments: chemicals and Pharma. AIL was incorporated in 1984 as a private limited company. In 1986, it had 1200 tones per annum. unit for Nitro Chloro Benzenes (NCB). Today, it has its own two manufacturing units in special economic zones at Dahej. They do have 400+ global customers. Due to its strong performance in the market, it has made it on this list of the best chemical stocks in India. They have a diverse portfolio of basic chemicals, agrochemicals, speciality chemicals and intermediates. AIL has its in-house R&D team which is diversified in four different places such as Dombivali and Navi Mumbai in Maharashtra, and Vapi in Gujarat which works continuously for attaining innovation.
5. Gujarat Fluorochemicals Limited
It was incorporated in 1987 as an Indian company producing industrial refrigerants. It has two manufacturing units in Gujarat. Other than this, they have subsidiaries – Their products are mainly categorized in four sections: Fluoropolymers, specialty chemicals, refrigerants and chemicals. Gujarat Fluorochemicals Limited has a team of 2000+ employees working for the advancement of GFL which is reflected in its growing net profit. In the last 5 years, its CAGR has grown around 20%. Also Read: 10 Best Stocks to Buy for Long Term in India
6. Balaji Amines Limited
Being the largest manufacturer of aliphatic amines and their derivatives it qualifies as the best chemical stocks in India. Balaji Amines Limited has its competitive advantage in vertical integration, huge range of finished products, economies of scale and low cost technology. There are a few specialist chemicals of which Balaji Amines is the sole producer and have a 100% market share. It has one subsidiary named Balaji specialty chemicals private limited. Most revenue contributing segment in Balaji Amines Limited is Pharma, followed by Argo. Major Products it offers are –
Amines – Mono/Di/Tri Methyl Amines and Mono ethyl amine. Amine Derivatives are Mono Methyl amine hydrochloride and Dimethyl amine.
7. Pidilite Industries
It was founded in 1959 by Shri Balvant Parekh when no one had any idea about synthetic adhesives in India. In 2010 Pidilite Industries sales doubled up to Rs. 3442 crores. It was a Limited company then. Dun and Bradstreet award was given to Pidilite Industries in 2014 for its chemical sector and the success continued. This Industry has nine different business segments –
Industrial Resins Leather chemicals Industrial adhesives Footwear adhesives Industrial bonding solution Maintenance, Repair and overhaul solutions Textile chemicals Paper chemicals
It has a product reach in more than 70 countries such as Bangladesh, Thailand, Dubai, US, Brazil and Egypt. Also, its R&D department is in Singapore.
8. Atul Ltd
Atul Ltd was founded in 1947 just a month after independence by Kasturbhai Lalbhai. Today this company has over 900 products available to more than 4000 large consumers belonging to 30 Industries across the globe. This company has subsidiaries in the US, UK, China, Brazil and UAE. It is one of the largest chemical companies in India. Its business segments are –
Aromatics Bulk chemicals and intermediates Colors Crop protection – Bulk & retail Floras Pharmaceutical Polymers – performance materials Value added services
9. Alkyl Amines Chemicals Limited
The company was incorporated in 1979 and today it is a global supplier of aliphatic amines, specialty amines and amine derivatives to the pharmaceutical, agrochemical, water treatment and rubber chemicals. It has 20 + production plants with 100 + products and 50 + countries. It deserves a spot in this list of the best chemical stocks in India. Alkyl Amines Chemicals Limited had a first mover advantage due to its new products’ rapid demand increase in the chemical industry. Also, it has a strong market position with high margins. They have a track record in innovation and customer satisfaction.
10. Tata Chemicals Limited
Who doesn’t know about Tata’s and their magic around the economy of India. Tata is no doubt one of the best ever group that emerged on the globe. Tata Chemicals has a monopoly over some products in the market such as iodized Salts and water purifiers. It has a strong R&D set up. Also, its exports have been to many countries including Europe, East Africa, South East Asia, and the Middle East. Also Read: How to buy Gold Bonds?
11. Solar Industries
It was started in 1995 by Shri Satyanarayan Nandlal Nuwal. In the years, it has become globally recognized as a single site manufacturing company. It has two segments of products – Industrial explosive and Defense. It has 25 manufacturing plants and a manufacturing capacity of producing 10000 MTs. Its business model is quite complex and hard to copy. Other than these two segments it has a significant presence in construction, mining and infrastructure. Let us learn more about this company which is among the best chemical stocks in India.
12. Clean Science and Technology Limited
Their diversified portfolio has performance chemicals, pharma and agro intermediates and FMCG chemicals. Clean Science and Technology Limited was incorporated in 2003 and focuses on being unique, innovation, sustainability, cost effectiveness and in-house R&D facility. It has strong Financials and relationships with its key customers. Clean Science and technology is amongst the largest producers of critical specialty chemicals globally. They have automated facilities & processes with proven commercialization & design capabilities.
13. Navin Fluorine International
The company was established in 1967 as the first integrated Fluorochemicals complex in southeast Asia producing refrigerant gases and a variety of inorganic fluoride in Surat. It has four business segments namely, Refrigeration, inorganic fluoride, specialty Fluorochemicals and CDMO. It has multiple product portfolios serving various industries like stainless steel, glass, oil, gas, electronics, abrasives, Crop Science and others.
14. Vinati Organics Limited
Vinati Organics Limited is the world’s largest manufacturer of IBB and ATBS with a global presence in more than 35 countries. Also, they have 140+ clients in the world with more than 800 employees working to make it tick everyday. Their products include specialty Aromatics, specialty monomers, butyl phenols, specialty products and miscellaneous Polymers. It was started in 1989 and has evolved internationally over time. They have their largest industrial and chemical companies across the US, Europe and Asia.
15. Godrej Industries
Most of us are well aware of a few products offered by Godrej under its following business segments –
Godrej Agrovet Godrej chemicals Godrej consumer products Godrej capital Godrej properties
This is an industry which was born out of India’s swadeshi movement making it 125 years old and from the original Make in India concept. In 1897 Ardeshir Godrej started this company. In 1918 they came up with the world’s first vegetable oil soap and today it is leading markets with the same Indian original stuff. Also Read: What is NSE IFSC?
Best Penny Chemical Stocks in India
Penny stocks are those stocks that you can buy at a very low price. It is generally a stock of a small company but it can be traded on large exchanges. They are considered a risky investment but as the starting price is low there is always a chance that you can get good returns. Here are some low price chemical stocks in India.
Vikas Lifecare Limited
Vikas Lifecare Limited is the leading name when it comes to delivering high-quality chemicals all around the world. They are mainly involved in making polymer and distributing it. They also trade rubber compounds for plastic and other related chemicals. The company is also involved in recycling plastic waste and the real estate business.
Company Share Price: Rs. 5.05 P/E Ratio: 9.29 52 Weeks High Price: Rs. 7.95
Vikas Ecotech Limited
Vikas Ecotech Limited are mainly involved in the distribution of Petroleum and Petrochemical products. The company has also ventured out in the packaging industry and manufacturing items that are used in the business of plastic rubber footwear.
Company Share Price: Rs. 3.30 P/E Ratio: 44.74 52 Weeks High Price: Rs. 6.90
Garodia Chemicals Limited
Garodia Chemicals Limited is in the business of creating and distributing synthetic dyestuff. They make textile auxiliaries, vat and direct dyes and some other similar chemicals.
Company Share Price: Rs. 5.83 P/E Ratio: -36.82 52 Weeks High Price: Rs. 5.83
We have informed you about the best chemical stocks in India as well as the best penny chemical stocks in India. Now, it is up to you to decide and pick stocks according to your budget and risk tolerance. The chemical sector is estimated to grow rapidly in the future but make sure you do proper research on the company before investing money in it.
