Top Chemical Companies in India: 10 Best Stocks, How to Identify, And More

Last Updated on Jul 16, 2024 by Anjali Chourasiya

The Indian chemical industry, the sixth-largest globally, is projected to reach $304 bn by 2025 with a CAGR of 9.3%, according to the Indian Brand Equity Foundation (IBEF). Chemical stocks represent companies involved in the production, distribution, and sale of chemicals used in agriculture, pharmaceuticals, and manufacturing. This sector’s growth is driven by increasing demand, government initiatives like the PLI scheme, and advancements in technology. The focus on green chemistry and sustainable practices further boosts its appeal. In this article, let’s explore how to identify the best chemical stocks, strategies for investing in them, their features, benefits, and risks, and more, including the top chemical companies in India.

What Are Chemical Stocks?

Chemical stocks represent companies engaged in the production and sale of chemicals. These companies operate across various segments, including basic chemicals, specialty chemicals, agrochemicals, and more. Investors often analyse the performance of chemical stocks to gauge the overall health of the industrial sector.

In the Indian market, chemical stocks have demonstrated significant potential due to the increasing demand for chemicals both domestically and internationally. This sector encompasses a wide range of companies, from large multinational corporations to smaller, specialised firms, each contributing to the industry’s robust growth.

Top Chemical Stocks in India – Updated July 2024

Name	Sub-Sector	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio	5Y CAGR (%)	1Y Return (%)	ROCE (%)
Fertilisers And Chemicals Travancore Ltd	Fertilisers & Agro Chemicals	70,132.90	1,083.85	479.80	97.91	120.77	19.23
Linde India Ltd	Commodity Chemicals	74,247.17	8,705.85	171.04	76.91	97.00	16.91
Solar Industries India Ltd	Commodity Chemicals	108,706.61	12,013.10	130.04	59.45	226.32	31.18
Deepak Nitrite Ltd	Commodity Chemicals	38,209.83	2,801.45	47.12	56.32	40.93	25.69
Deepak Fertilisers and Petrochemicals Corp Ltd	Fertilisers & Agro Chemicals	9,868.64	781.75	22.30	51.39	28.17	12.50
Balaji Amines Ltd	Specialty Chemicals	7,705.93	2,378.30	37.62	48.07	7.58	15.42
Alkyl Amines Chemicals Ltd	Specialty Chemicals	10,461.15	2,045.95	70.27	44.39	-18.13	15.26
Navin Fluorine International Ltd	Specialty Chemicals	18,148.02	3,660.10	67.09	41.60	-17.48	11.65
PCBL Ltd	Commodity Chemicals	10,680.30	282.90	21.75	37.39	79.51	23.94
SRF Ltd	Diversified Chemicals	71,140.48	2,395.70	53.26	34.85	6.99	13.32

Note: The data is from 15th July 2024. ​​The top 10 chemical stocks are based on the following parameters and sorted using Tickertape Stock Screener –

• Sub-sectors: Diversified Chemicals, Fertilisers & Agro Chemicals, Speciality Chemicals, Commodity Chemicals 
• Stock Universe: Nifty 500
• 5-yr CAGR: Sorted from highest to lowest 

Note that these stocks are in no order of preference. Please note that these stock selection criteria and the stocks are provided for informational purposes only; it is essential to conduct your own research.

🚀 Pro Tip: Utilise Tickertape’s Market Mood Index to gauge market sentiment and make informed investment decisions based on real-time market data and trends.

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Overview of the Top Chemical Companies in India

Fertilisers And Chemicals Travancore Ltd

Founded in 1943, Fertilisers And Chemicals Travancore Ltd (FACT) is a prominent player in the fertilisers and agrochemicals sector in India. The company is mid-cap with a market capitalisation of Rs. 70,132.90 cr. While the P/E ratio of 479.8 suggests the stock might be overvalued, it is not in the overbought zone.

Over the last five years, revenue has grown at a healthy rate of 16.87%, outperforming the industry average of 10.41%. However, net income has grown at a slower pace, at a rate of -2.12% over the last five years. There has also been significant year-to-year variation in net income. Over the last 5 years, the company’s market share increased from 1.83% to 2.46%.

Find out more financial information about the stock here.

Linde India Ltd

Founded in 1935, Linde India Ltd is a leading company in the industrial and medical gases sector and a subsidiary of the global Linde Group. The company has a market capitalisation of Rs. 74,247.17 cr., and a PE ratio of 171.04.

For the fiscal year 2023-2024, Linde India reported a revenue of Rs. 2,853.43 cr. and a net profit of Rs. 434.08 cr. The company is classified as a high-risk stock, being 3.35 times more volatile than the Nifty index. Over the past year, the stock has delivered a return of 97.00%, showcasing substantial appreciation in value.

Learn more about the stock’s financials by checking out this page.

Solar Industries India Ltd

Solar Industries India Ltd, an explosives manufacturing company, is known for producing and exporting industrial explosives and initiating systems. As of the fiscal year 2023-2024, the company’s revenue was Rs. 6,114.34 cr., and it achieved a net profit of Rs. 835.93 cr. The stock has a market capitalisation of Rs. 1,08,706.61 cr.

The company is categorised as a large-cap company and is ranked 94 in market cap. The company is classified as a high-risk stock, being 3.34 times as volatile as the Nifty index. Over the past year, the stock has experienced a significant return of 226.32%. Despite its high P/E ratio of 130.04, the stock has shown a strong 5-year CAGR.

You can discover additional financial details about the stock by clicking here.

Deepak Nitrite Ltd

Deepak Nitrite Ltd is a key player in the commodity chemicals sector in India. For the fiscal year 2023-2024, Deepak Nitrite reported a revenue of Rs. 7,837.77 cr. and a net profit of Rs. 810.90 cr. The market capitalisation is Rs. 38,209.83 cr., with a P/E ratio of 47.12, suggesting the stock may be on the higher valuation side.

The stock has a 1-year return of 40.93%, indicating a solid performance over the last year. Deepak Nitrite’s stock volatility is 2.19 times that of Nifty, categorising it as moderately risky. Analysts project a revenue growth of 12.45% and an earnings growth of 16.40%, with a mixed sentiment among market watchers.

For more financial insights about the stock, please visit this page.

Deepak Fertilisers and Petrochemicals Corp Ltd

Deepak Fertilisers and Petrochemicals Corp Ltd is a prominent player in the fertilisers and petrochemicals industry in India. As of 2023-2024, the company has shown a solid financial performance with a revenue of Rs. 7,267.98 cr., and a net profit of Rs. 555.26 cr. The market capitalisation of Deepak Fertilisers stands at Rs. 9,868.64 cr., with a P/E ratio of 22.30, indicating a balanced valuation in the market.

The company’s stock has shown a 1-year return of 28.17%, reflecting a positive performance over the past year. Deepak Fertilisers is considered moderately risky, with a volatility 1.37 times that of Nifty. Forecasts indicate stable growth with positive sentiment from market analysts. The company’s robust performance is also underlined by its significant presence in the agrochemical sector.

Learn more about the stock’s financials by checking out this page.

Balaji Amines Ltd

Balaji Amines Ltd, established in 1988, is a leading manufacturer of aliphatic amines and their derivatives in India. The company specialises in manufacturing methylamines, ethylamines, derivatives of amines, and other specialty chemicals, catering to various industries, including pharmaceuticals, agrochemicals, and water treatment.Balaji Amines Ltd has a market capitalization of Rs. 7,705.93 cr. and a P/E ratio of 37.62.

For the fiscal year 2023-2024, Balaji Amines reported a revenue of Rs. 2,507.58 cr. and a net profit of Rs. 385.29 cr. The company’s stock has delivered a 1-year return of 7.58%, reflecting a stable performance over the last year. The stock of Balaji Amines is considered moderately risky, with a volatility 1.47 times that of the Nifty index.

You can discover additional financial details about the stock by clicking here.

Alkyl Amines Chemicals Ltd

Alkyl Amines Chemicals Ltd is engaged in the manufacture of specialty chemicals, particularly organic and inorganic chemical compounds. The company operates in the specialty chemicals sector and has a market capitalisation of Rs. 10,461.15 cr, positioning it as a small-cap stock. The stock’s P/E ratio stands at 70.27, indicating a high valuation compared to the industry average.

In the fiscal year 2023-2024, Alkyl Amines Chemicals Ltd reported a revenue of Rs. 1,455.66 cr., with a net profit of Rs. 148.87 cr. These figures represent a decrease from the previous year’s revenue of Rs. 1,696.24 cr. and net profit of Rs. 228.66 cr. This decline in financial performance has affected the stock’s volatility and investor sentiment. The stock is considered moderately risky, being 2.52 times as volatile as the Nifty index. Additionally, the stock’s price has decreased by 18.13% over the past year. However, the earnings growth forecast is positive, with an expected increase of 33.55%.

For more financial insights about the stock, please visit this page.

Navin Fluorine International Ltd

Navin Fluorine International Ltd is a leading company in the chemicals business with a focus on fluorine chemistry. The company produces refrigeration gases, basic building block fluorides, and specialty organofluorines. For the fiscal year 2023-2024, Navin Fluorine International Ltd reported a revenue of Rs. 2,172.99 cr. and a net profit of Rs. 270.50 cr. The company is considered to have a moderate risk, being 2.41 times as volatile as Nifty.

It has a market capitalization of Rs. 18,148 cr. The company has a revenue growth forecast of +21.85% and an earnings growth forecast of +26.91%. The dividend yield is relatively low at 0.41%. The beta value of Navin Fluorine International Ltd is 0.71, indicating lower volatility compared to the market.

You can discover additional financial details about the stock by clicking here.

PCBL Ltd

PCBL Ltd, formerly known as Phillips Carbon Black Ltd, is a key player in the commodity chemicals sector, particularly in the production of carbon black. For the fiscal year 2023-2024, PCBL reported a revenue of Rs. 4,358.75 cr., and a net profit of Rs. 306.88 cr. The company has a market capitalisation of Rs. 10,680.30 cr.

The stock is considered low risk, with a beta of 0.85, indicating it is less volatile than the broader market. Over the past year, PCBL’s stock price has ranged between Rs. 235.00 and Rs. 322.45, reflecting a significant price change of 18.03%. The stock is currently trading at Rs. 282.90. The company’s forecast suggests stable performance with moderate growth expectations.

For more financial insights about the stock, please visit this page.

SRF Ltd

SRF Ltd, a leading diversified chemicals company in India, has a robust presence in the chemicals and polymers, technical textiles, and packaging films segments. For the fiscal year 2023-2024, SRF Ltd reported a revenue of Rs. 13,221.54 cr., and a net profit of Rs. 1,335.71 cr. The company has a market capitalisation of Rs. 71,140.48 cr.

The stock is characterised as low risk with a beta of 1.13, indicating it is 1.79 times as volatile as the Nifty index. Over the past year, SRF’s stock price has fluctuated between a low of Rs. 2,040 and a high of Rs. 2,693.95, reflecting a price change of 6.99%. The stock is currently trading at Rs. 2,392.60, slightly below its 52-week high. Forecasts indicate a positive outlook with an expected earnings growth of 25.60% and revenue growth of 14.03%.

You can discover additional financial details about the stock by clicking here.

Features of the Best Chemical Stocks in India

Identifying the best chemical stocks in India involves evaluating several features that might indicate strong performance and growth potential. Here are some aspects you might consider:

1. Financial Stability: Strong financials may indicate the company’s ability to withstand market fluctuations. You can assess the company’s revenue, profit margins, and historical performance to get an insight into the company’s financial health. For this purpose, try Tickertape Stock Screener, which provides you the ability to analyse various stocks based on multiple factors at the same time. Try now!
2. Market Position: Leading companies in the chemical sector often have a competitive edge due to their market share, brand recognition, and extensive distribution networks. Top chemical companies in India typically have a robust market presence.
3. Innovation and R&D: Companies that invest significantly in research and development are often better positioned to innovate and stay ahead of market trends. This is especially true for specialty chemicals stocks, where product innovation is key to maintaining a competitive edge.
4. Export Capability: The ability to export products and penetrate international markets can be a significant growth driver. Many top 10 chemical stocks in India have a strong export component to their business models.
5. Environmental Compliance: Adherence to environmental regulations and sustainability practices can impact a company’s long-term viability. Companies that prioritise sustainable practices might be better positioned for future growth.

Cyclical Nature of Indian Chemical Sector Stocks

The chemical sector in India, like many other industries, exhibits cyclical characteristics. This cyclical nature can affect the performance of chemical stocks in India. Here are some factors you might consider:

1. Demand Fluctuations: The demand for chemical products can vary based on economic conditions. During periods of economic growth, the demand for chemicals typically increases, boosting the performance of chemical sector stocks. Conversely, during economic downturns, demand may decrease.
2. Raw Material Prices: The prices of raw materials, such as crude oil and natural gas, can significantly impact the profitability of chemical companies. Fluctuations in these prices can lead to volatility in chemical stocks.
3. Regulatory Changes: Changes in government policies and regulations, both domestically and internationally, can influence the performance of chemical companies. For instance, stricter environmental regulations can lead to increased compliance costs.
4. Technological Advancements: Advances in technology can lead to shifts in the chemical industry, impacting the demand for certain products and the competitive landscape. Companies that adapt to technological changes might have a competitive advantage.

Factors to Consider When Choosing Chemical Stocks

When choosing chemical stocks, you might want to consider several important factors to ensure you make informed investment decisions. These factors can provide insights into the potential performance and stability of chemical sector stocks.

1. Financial Performance: Reviewing the financial performance of a company, including its revenue, profit margins, and debt levels, may help you understand its financial health. Companies with strong financials might be better positioned to weather economic downturns.
2. Market Position: Companies with a strong market position, such as those among the top chemical companies in India, tend to have competitive advantages. These advantages may include brand recognition, extensive distribution networks, and a diversified product portfolio.
3. Innovation and R&D: Investing in companies that prioritise research and development could be beneficial. These companies are more likely to innovate and adapt to market changes, which is crucial for specialty chemicals stocks.
4. Regulatory Compliance: Ensuring that the company complies with environmental and safety regulations is important. Companies that adhere to strict regulatory standards are less likely to face legal issues and fines, which can impact their financial performance.
5. Global Presence: Companies with a strong international presence, including export capabilities, may benefit from diversified revenue streams. This global reach might also mitigate risks associated with domestic market fluctuations.

How to Identify the Best Chemical Companies in India?

Identifying the best chemical companies in India can be streamlined using tools like Tickertape’s stock screener, along with other important factors. Here’s how you can proceed:

Use Tickertape Stock Screener

Apply filters such as market capitalisation, revenue growth, profit margins, ROE, debt to equity ratio, and more on Tickertape’s Stock Screener to identify potential candidates. There are over 200 filters available with an option to create your custom filter. Try it out now!

Analyse Financial Statements

Review the financial statements of chemical stocks in India to gain insights into their profitability, revenue growth, and overall financial health. Companies with consistent revenue growth and strong profit margins may indicate financial stability and operational efficiency. You can check the financial statements of a stock along with insights into their performance on Tickertape. Here’s an example.

Evaluate Market Share

Companies with significant market share in the chemical industry often have established customer bases and strong competitive positions. Market share data can be found in the ‘Financials’ section on every stock page on Tickertape. It can help you in identifying top chemical companies in India.

Research Product Diversification

Companies with a diversified product portfolio can better withstand market fluctuations. Look for chemical companies that produce a wide range of products catering to different industries. This can be especially relevant for specialty chemicals stocks.

Consider Management Quality

The quality of a company’s management team can significantly impact its performance. Experienced and capable management can drive growth and effectively navigate challenges. Assess management by reviewing their track record and strategic vision.

Check for Sustainability Initiatives

Companies that focus on sustainability and environmental responsibility are increasingly preferred by investors. These initiatives can enhance a company’s reputation and reduce regulatory risks. Look for chemical companies that prioritise sustainable practices.

Analyse Industry Reports

Reading industry reports and analyses can provide insights into the overall health of the chemical sector and highlight leading companies. These reports often include valuable data on market trends, challenges, and growth opportunities. Find the reports of any stocks under the ‘Company Updates’ section on its Tickertape Page. For example, check out events of Deepak Nitrite Ltd.

Monitor Company Announcements

Keep an eye on company announcements and press releases. Information about new product launches, expansions, and collaborations can be indicative of a company’s growth potential. Regularly monitoring these updates can provide timely insights. To stay updated, you can turn on ‘Alerts’ on your favourite stocks! Try now! 

Compare with Peers

Compare potential investment targets against their peers. This can help you understand relative strengths and weaknesses within the industry. Peer comparisons can provide a broader perspective on a company’s position in the market. Check out peer comparison of Deepak Nitrite Ltd.

How to Invest in the Best Chemical Stocks in India?

Investing in the best chemical stocks in India can be made easy through platforms like Tickertape. Here’s how you can proceed:

1. Sign Up on Tickertape: Create an account on Tickertape. 
2. Use the Stock Screener: Utilise Tickertape’s Stock Screener to apply filters and identify the best chemical stocks in India based on your investment criteria.
3. Analyse and Select Stocks: Review the filtered results and analyse the selected stocks using Tickertape’s detailed financial data and insights. 
4. Connect Your Portfolio: Connect your investment portfolio to Tickertape. This allows you to seamlessly manage and monitor your investments in chemical sector stocks.
5. Invest: Once you’ve identified the chemical stocks you wish to invest in, you can execute your trades directly through Tickertape.
6. Monitor Performance: Regularly monitor the performance of your investments using Tickertape’s Portfolio. Stay updated with market trends and news related to chemical stocks in India to make timely decisions with Tickertape Alerts! Set it up now to never miss out on important updates!

By following these steps, you can efficiently invest in the best chemical stocks in India and manage your portfolio with ease.

Benefits of Investing in the Best Chemical Shares in India

Investing in the best chemical shares in India may offer several advantages. Here are some potential benefits you might consider:

1. Growth Potential: The chemical industry in India might grow due to increasing domestic and international demand. By investing in top chemical companies in India, you might gain exposure to this potential growth.
2. Diversification: Adding chemical stocks to your investment portfolio can provide diversification. Chemical sector stocks often perform differently from other sectors, which might help mitigate overall portfolio risk.
3. Dividend Income: You might find that some chemical companies offer regular dividends, which can provide a steady income stream. This might be particularly attractive if you are looking for reliable returns.
4. Innovation and Sustainability: Leading chemical companies often invest in research and development, which may drive innovation and competitiveness. Companies focusing on sustainability and environmental responsibility might have a long-term advantage.
5. Economic Contribution: The chemical industry contributes significantly to the Indian economy, including job creation and export revenues. By investing in chemical stocks in India, you may support a sector that plays a crucial role in economic development.
6. Market Resilience: Top chemical companies in India, especially those with diversified product portfolios, may better withstand market fluctuations. These companies often have strong market presence and brand recognition, which might provide stability in volatile markets.
7. Export Opportunities: Many of the best chemical stocks in India have strong export capabilities. This can provide global market exposure, driving revenue growth and reducing dependency on domestic markets.

Risks Associated with Chemical Stocks

Investing in chemical stocks can come with various risks that you might want to consider. Here are some potential risks associated with chemical sector stocks:

1. Market Fluctuations: The performance of chemical stocks in India can be affected by market fluctuations. Economic downturns or slowdowns in key industries such as agriculture, pharmaceuticals, and manufacturing might lead to reduced demand for chemicals, impacting the stock prices.
2. Raw Material Price Volatility: Chemical companies often rely on raw materials like crude oil and natural gas. Fluctuations in the prices of these raw materials might significantly affect the profitability of chemical companies. Increased costs can reduce profit margins, making chemical stocks more volatile.
3. Regulatory Changes: The chemical industry is subject to stringent environmental and safety regulations. Changes in these regulations might lead to increased compliance costs and operational challenges. Regulatory risks can impact the financial performance of chemical companies.
4. Technological Disruptions: Advances in technology can disrupt traditional chemical manufacturing processes. Companies that fail to adapt to new technologies might lose their competitive edge. This risk is particularly relevant for specialty chemicals stocks where innovation is key.
5. Environmental Liabilities: Chemical companies often face environmental liabilities due to the nature of their operations. Accidents, spills, and other environmental incidents can result in significant cleanup costs, legal liabilities, and damage to the company’s reputation.
6. Currency Exchange Risks: Many top chemical companies in India have significant export businesses. Fluctuations in currency exchange rates can impact their revenue and profitability. A strong domestic currency might make exports less competitive, affecting the performance of chemical stocks.
7. Competition: The chemical industry is highly competitive. New entrants and existing competitors can impact market share and profitability. Companies must continually innovate and improve efficiency to maintain their competitive position.
8. Supply Chain Disruptions: Chemical companies depend on a complex supply chain for raw materials and distribution. Disruptions in the supply chain due to geopolitical issues, natural disasters, or logistical challenges can impact production and profitability.

Who Should Invest in the Top Chemical Stocks in India?

Investing in the top chemical stocks in India might be suitable for various types of investors. Here are some potential investor profiles you might consider:

1. Long-term Investors: If you are a long-term investor looking for stable growth, investing in the top chemical companies in India might be beneficial. These companies often show consistent performance and may provide steady returns over the years.
2. Income-focused Investors: If you are seeking regular income, you might be interested in chemical stocks that offer dividends. Some established chemical companies may provide regular dividend payouts, which can be an attractive source of income.
3. Diversification Seekers: If you want to diversify your investment portfolio, adding chemical sector stocks can provide exposure to a different industry. This diversification might help mitigate risks associated with other sectors.
4. Growth-oriented Investors: If you are focused on capital appreciation, investing in the best chemical stocks in India might offer significant growth potential. The chemical industry may grow due to increasing demand both domestically and internationally.
5. Environmental Enthusiasts: If you prioritise sustainability and environmental responsibility, you might find it appealing to invest in specialty chemicals stocks. Companies that focus on innovative and eco-friendly solutions can align with your values.

Future of Chemical Stocks in India

The future of chemical stocks in India may be promising, influenced by several factors. Here are some key aspects you might consider:

Increasing Demand

The demand for chemicals in India might grow due to expanding industrial activities, urbanisation, and rising consumer needs. The Indian chemical industry is projected to reach $300 bn by 2025 and $1 tn by 2024, driven by growth in agriculture, pharmaceuticals, and consumer goods.

Government Initiatives

Supportive government policies like the Production Linked Incentive (PLI) scheme and reduced corporate tax rates could encourage growth and investment in the chemical sector, making it more attractive to investors.

Technological Advancements

Investments in research and development, along with the adoption of Industry 4.0 technologies, may lead to innovative chemical products and increased efficiency. Companies leveraging these advancements might gain a competitive edge.

Export Opportunities

Indian chemical companies have a strong presence in the global market, with exports reaching $30 billion in FY 2020-2021. Expanding export capabilities could enhance revenue streams and market presence.

Sustainability Trends

As sustainability and environmental regulations become more prominent, companies adopting eco-friendly practices might have a long-term market advantage. Green chemistry and waste reduction are increasingly important in the industry.

Potential for Consolidation

The industry may see consolidation through mergers and acquisitions, leading to stronger market players with enhanced resources and capabilities. This can result in improved operational efficiencies and increased market share.

To Conclude

Investing in the best chemical stocks in India may offer numerous benefits, including growth potential, diversification, and income opportunities. However, it is essential to consider the associated risks, such as market fluctuations, raw material price volatility, and regulatory changes. By understanding who might invest in chemical stocks and considering the future trends, you can make informed decisions. Whether you are a long-term investor, income seeker, or environmentally conscious, chemical stocks in India might provide valuable opportunities. As with any investment, conducting thorough research, staying informed about market developments, and consulting a financial advisor before investing are crucial to maximising your potential returns.

Frequently Asked Questions (FAQs) About Chemical Stocks