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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.
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Top 10 BestChemical Stocks inIndia The chemicalindustryisthebackboneofthe Indianeconomyand contributes7% toitsGDP. Thedemandforefficientchemical supply inIndiahasskyrocketedin recent times due to the increasing demand for processed food, personal and home care solutions andthe growing portableenergyrequirement.Asa result, Indianspecialitychemicalcompaniesare expanding theircapacities tocaterto therising demandwhichhas givenrisetosomeofthebest chemicalstocks in Indiain recentyears. Government policies suchasproduction-linkedincentive(PLI)schemesare also beingintroduced topromotethe domestic manufacturing ofagrochemicals. Under theUnionBudget2021-22,thegovernment allocated₹233.14croresfor the departmentofchemicalsandpetrochemicals.Indiaalsoholdsaverystrong positioninthe exportsandimportsofchemicalsinthe globaleconomy.Some of thetop chemicalstocksinIndia’shistoryhave beenseeninrecentyearsandthis numberis sureto grow in thenear future. This realization has made the top chemical stocks in India an attractive investment option. Be itsmall-cap, mid-caps,orlarge-capstocks, these chemical sectorstockshaveseena trendofoutperformingmanyotherstocks.Thisarticle has all the information an investor needs if they are planning on investing in the Indianchemicalsectorand are looking forthebest chemicalstocks inIndia. Top10BestChemicalStocksin India Let uslookatthetop 10bestchemical stocksinIndiatohelpusdecide whichones to investin.
PidiliteIndustriesLtd.–Best Chemical StocksinIndia Pidilite IndustriesLtd,foundedin1959,istheleading adhesivemanufacturing company in India. Its product range also includes sealants, construction chemicals,waterproofingsolutions,polymers,industrialresins, andadhesives used forarts andcrafts. The major brands of Pidilite Industries are Fevicol, Fevicol MR, Dr Fixit, Fewikwik, M-Seal, Fevistik, Hobby Ideas, andFevicryl.The companyalsohasseveraljoint ventures andsubsidiariessuch asICA, Nina Percept, CIPY, JowatSE,and HuntsmanAdvanced MaterialsSolutionsPvt.Ltd,etc. Thesejoint ventures and acquisitions have helped strengthen the company’s retail as well as BTB operations.
The company’srevenueincreasedby36%andnetincome increasedby7% inthe fiscal year ended31stMarch2022. The3-yearNet Profit CAGRis13.67%. UPLLtd. UPLLtd,formerlyknown as UnitedPhosphorusLimitedandfounded in1969, offers sustainableagriculture solutions inIndiaandinternationally. It manufacturesandmarketsagrochemicals,chemicalintermediaries,industrial chemicals, andspeciality chemicals. The companyalsoofferscropprotection solutions to farmers. The company has a strategic collaboration with Chr. Hansen A/S, a bioscience company inDenmark, fordevelopingmicrobial-basedbio-solutions.The primary source ofrevenue for UPL isconventionalagrochemicalproductsandseeds.The company’sagrochemicalproductsincludeherbicides,fungicides,insecticides, rodenticides, plant growthregulators, etc.These productsare soldinmorethan 150 countriesacrossthe world.They havearound1400 patents, 25R&Dfacilities, and 43manufacturingplants. The company’srevenue increased by 20%andnetincome applicable tocommon stockholders increasedby 30%inthe fiscal yearended31stMarch2022. The3- yearNetProfit CAGRis 66.03%. GujaratFluorochemicalsLtd. GujaratFluorochemicalsLtd.,foundedin1987, isachemicalcompany thathas expertiseinFluorineChemistry.The companymanufacturesFluoropolymers,
Fluorospecialities,Refrigerantsandcommoditychemicals. Itsproductsinclude PTFE, PTFEAdditives, FKM, EDFA, BTFM,refrigerant gases, etc.These are usedas raw materialsorforchemicalprocessesin various industriessuchaspharma, 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 asignatory to theUnitedNationsGlobalCompact(UNGC). The company’srevenue increasedby49%inthe fiscal year ended31st March 2022. The3-yearNetProfitCAGR is -21.10%. AartiIndustriesLtd. AartiIndustriesLtd, foundedin1984, isthe leading Indiancompany inthe manufacturingofpharmaceuticalsandspecialitychemicals. 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, activepharmaceuticalingredientsandintermediates, etc. These productsare usedinthemanufacturingprocessesofvariousotherindustries.The company hasstate-of-the-artmanufacturing facilitiesacrossthe country.The speciality chemical business contributesto 83% ofits portfolio. The company’srevenueincreasedby55%inthe fiscalyear ended31st March 2022.The3-yearNetProfitCAGR is 61.03%.
AtulLtd. Atul Ltd., foundedin1947, isachemicalcompanywithproductsfalling under two categories: LifeScience ChemicalsandPerformanceandOtherChemicals.The company startedoffasadyestuffmanufacturer but hasexpandedover theyears throughmergers, acquisitions,andR&Dinitiatives. The companynowproducesover900productsandhas140brands. It operatesin the following keyareas: aromatics,polymers,pharmaintermediates,andcrop protection. Thishasincreasedthe profitabilityofthebusiness.Exports contributed50% to itstotal sales in2022. The company’srevenue increasedby36%inthe fiscal year ended31st March 2022.The3-yearNetProfitCAGR is 17.65%. SolarIndustriesLtd. SolarIndustriesLtd.,foundedin1995, isanindustrialexplosivesmanufacturer.Its productsare mainlyutilizedintheminingandinfrastructuresector.The company alsomanufacturesproductsfor the defence sector, suchasmilitaryexplosives, bombs,torpedoes,rockets, warheadsforrocketsandmissiles, detonators, ignitors,hand grenades,medium andlargecalibrebullets,etc. The companyhasrecentlyenteredintothe PropulsionSystemBusinessfor space applications.
The company’srevenueincreasedbynearly57%inthe fiscalyearended31st March 2022. The3-year NetProfitCAGRis28.28%. DeepakNitriteLtd. DeepakNitriteLtd.,foundedin1970, isachemical manufacturingcompanythat manufacturesinorganic, organic, andspeciality chemicals. It alsoproduces intermediatesforthemanufacturingofindustrialexplosives,polymers, paints, cosmetics,etc. Ithasmorethan100products. Thecompany’srevenuecomesfromthreedifferent streams: Phenolics, performanceproducts, andspecialityandbasicchemicals.It hascaptureda70% marketshare insodium nitrite, sodiumnitrate, and NitroToluenes,making it the leadingplayerin thissegment. The companyhasrecentlybecomedebt-free.The company’srevenueincreased by 56%inthe fiscalyear ended31stMarch2022. The3-yearNet Profit CAGR is 147.83%. VinatiOrganicsLtd. VinatiOrganicsLtd.,foundedin1989,focusesonthemanufacturingofmonomers andspecialityorganicintermediaries.Itsproductsincludespecialityaromatics, specialitymonomers,butylphenols, etc.
Their products are utilized in several sectors that produce food additives, flavours, cosmeticadditives,fragrances,agrichemicals,constructionchemicals,adhesives, elastomers, cleaning materials, lubricants, industrial gases, colours, paints, surfactants, polymersaswellastextileauxiliaries.Other industrialusesofthese chemicalsinclude applicationsin aerospace, automotive,andmanufacturing sector. The company’srevenueincreasedbynearly69%inthefiscalyearended31st March 2022. The3-year NetProfitCAGRis10.78%. TataChemicalsLtd. TataChemicalsLtd., foundedin1939, isapart ofthe Tata Groupandisthe third largestsoda ashproducer in theworldandthebest chemicalstocks inIndia.The company hastwomainbusinessverticals: BasicChemistryandSpecialty Chemistry. The BasicChemistrybusinesscomprisesmanufacturing Halogenproducts: chlorineand bromine-basedproducts;Saltproducts: salt, industrialsalt,gypsum, etc.;andAlkaliproducts:soda bicarbonate, sodaash, crushedrefinedsoda, caustic soda,etc. TheSpecialty ChemistrybusinessfocusesonAgro Science, NutritionalScience,and MaterialScience. The productsareusedforagriculture,animalnutrition,construction(cement), chemicalprocesses,oralcareandcosmetics,paints,pharmaceuticals,soapsand detergents,etc. Theyalsofindapplications inindustriessuchasfood, glass, textile, metals, etc. The companyhas13 manufacturingplantsacross the world.
The company’srevenueincreased by nearly24%inthe fiscalyearended31st March 2022. The 3-year NetProfit CAGRis5.07%. Navin FluorineInternationalLtd. NavinFluorineInternationalLtd.,foundedin1967, isa chemicalcompanythat manufacturesandmarketsrefrigerant gases, inorganicfluorides, speciality fluorochemicalsandother fluorinatedcompounds. Theirproducts aremainlyused insectorsinvolvedwithpharmaceuticals, agrochemicalproducts,oilandgas,stainlesssteelmanufacturing,electronics, abrasives,solarenergy,refrigeration, air conditioning,etc. The companyalsooffersa customsynthesisandcontract researchservicesfor developing new products, processes and novel technologies. It has domain expertise, developmentskillsandthe infrastructure requiredtomeet andexceed customerexpectations. The company’srevenue increasedby23%inthe fiscal year ended31st March 2022.The3-yearNetProfitCAGR is 33.57%. Conclusion Above,wehave summarizedinformationregarding the top chemicalcompanies listedinIndia.The growthshownby the chemicalsectorsandthe increasing profitshasmadeitanattractiveinvestmentoptionfor investors.