The chemical industry has been a silent contributor to the growth of India. It invests in the country’s economy (GDP) regularly and is indeed the lifeline of several sectors. This industry deals with the production of raw materials, and important final goods for industries as varied as agriculture and production of medicines, textiles as well as general consumer goods.
To address this, if you are interested in investing in this emerging market, you can go for the shares of the chemical firms listed on the National Stock Exchange (NSE).
In this article, we want to give you information on the top 10 chemical stocks in India and will also explain their market trends, their projected growth and why we should invest in these stocks.
Top 10 Chemical Stocks on NSE
Let’s see the list of best chemical stocks to buy now in India on the NSE
1. Supreme Petrochem Ltd
The first best chemical stocks in India for the long term is Supreme Petrochem Ltd. It is an Indian-based polystyrene manufacturer that was established in 1995 it deals with polystyrene, expandable polystyrene and other petrochemical products.
Key Metrics:
- Market Capitalization: ₹16,404 crore
- Revenue: ₹1,596.36 crore
- Net Profit: ₹121.95 crore
- Debt-Equity Ratio: 0.7
- Return on Capital Employed (ROCE): 22.5 %
- Dividend Yield: 1.03 %
Why Invest in Supreme Petrochem Ltd:
- Strong market position: The polystyrene market and Supreme Petrochem It is good to note that Supreme Petrochem is one of the market leaders in the Indian market.
- Growing demand: Demand for packaging materials and insulation is on the rise due to which growth is experienced.
- Diversification: Diversification takes away reliance on one market because it focuses on new products and new market acquisitions.
- Cost leadership: Through better organization and low cost in generating the products, there is an improvement in competitiveness.
- Consistent dividend payer: They offer a steady cash income in terms of earnings since the company pays dividends systematically.
2. Navin Fluorine International Ltd.
Navin Fluorine International Ltd established in 1967, is one of the pioneers in fluorochemicals in India that deals with products such as refrigerants, fluoro intermediates, and fluoropolymers.
Key Metrics:
- Market Capitalization: ₹22,330 crore
- Revenue: ₹2,065.01 crore
- Net Profit: ₹270.50 crore
- Debt-Equity Ratio: 0.5
- Return on Capital Employed (ROCE): 18.6 %
- Dividend Yield: 0.32 %
Why Invest in Navin Fluorine International Ltd:
- Strong Market Position: Market leader in the segments of fluorochemicals of the Indian economy
- Diversified Product Portfolio: Helps to decrease risk for the company connected with dependence on one product or market line.
- Growing Demand: Fluorochemicals play a demand for pharmaceuticals, agrochemicals, and refrigeration as it increases.
- Cost Leadership: It defines and explains operational efficiency and low-cost production as factors boosting competitiveness.
- Consistent Dividend Payer: This is because dividend yield is a constant form of return on investment directly in the form of cash.
3. Vinati Organics Ltd.
Established in 1989, Vinati Organics Ltd. is a speciality chemicals stocks company based in India, venturing into aroma chemicals, pharmaceutical intermediates, and agrochemicals.
Key Metrics:
- Market Capitalization: ₹22,330 crore
- Revenue: ₹559.94 crore
- Net Profit: ₹104.14 crore
- Debt-Equity Ratio: 0.3
- Return on Capital Employed (ROCE): 18.6 %
- Dividend Yield: 0.32 %
Why Invest in Vinati Organics Ltd. :
- Strong Market Position: Market leader in some specific speciality segments of the chemical industry.
- High-Margin Products: Such industry’s main product, speciality chemicals, have considerably higher margins than commodities.
- Growing Demand: Higher capabilities utilization in the production of aroma chemicals, pharmaceutical intermediates and agro chemical stocks in NSE.
- Diversified Product Portfolio: Reduces vulnerability or risk of making the chemical stocks company one product or one market kind of firm.
- Consistent Dividend Payer: Dividend maintenance allows it can offer a fixed income stream Besides, it can have a regular source of income.
4. Aarti Industries Ltd.
Aarti Industries Ltd. is a chemical stocks company established in 1984 that operates in India and offers speciality chemicals, pharmaceuticals, and agro-chemical stocks.
Key Metrics:
- Market Capitalization: ₹25,646 crore
- Revenue: ₹132 crore
- Net Profit: ₹545.23 crore
- Debt-Equity Ratio: 0.5
- Return on Capital Employed (ROCE): 7.47 %
- Dividend Yield: 0.14 %
Why Invest in Aarti Industries Ltd. :
- Diversified Product Portfolio: Reduces risk through the once reliance on a single product or market.
- Strong R&D Capabilities: Opens up the possibilities for relevant production of new goods and services.
- Growing Demand: This is through improving the demand for speciality chemicals, pharmaceuticals, and agrochemicals.
- Global Presence: Exports to more than a hundred countries thereby cutting down the tie with the domestic market.
- Consistent Dividend Payer: The dividend policy’s strength is the predictability that it brings by constantly paying these profits to shareholders.
5. Gujarat Fluorochemicals Limited (GFL)
Gujarat Fluorochemicals Limited (GFL), established in 1987, is an Indian-based chemical stocks company specializing in the manufacture of fluorochemicals such as refrigerants, fluoro intermediates, and fluoropolymers.
Key Metrics:
- Market Capitalization: ₹35,750 crore
- Revenue: ₹4,280.82 crore
- Net Profit: ₹434.95 crore
- Debt-Equity Ratio: 0.4
- Return on Capital Employed (ROCE): 9.67 %
- Dividend Yield: 0.12 %
Why Invest in Gujarat Fluorochemicals Ltd. :
- Strong Market Position: Market leader in the Indian fluorochemicals business.
- Diversified Product Portfolio: Reduces reliance on a given product or a given market.
- Growing Demand: Continued development in the end use such as in the pharmaceuticals, agrochemicals, and refrigeration.
- Cost Leadership: Operations and production costs are ways through which competitiveness is improved.
- Consistent Dividend Payer: They also pave the way for a constant income to be realised in the form of dividends.
6. Clean Science and Technology Ltd.
Clean Science and Technology Ltd was incorporated in 2003 and is a chemical stocks company based in India engaged in the manufacturing of speciality chemicals such as performance chemicals, pharmaceutical intermediates and agrochemical stocks in India intermediates.
Key Metrics:
- Market Capitalization: ₹16,264 crore
- Revenue: ₹800 crore
- Net Profit: ₹70 crore
- Debt-Equity Ratio: 0.2
- Return on Capital Employed (ROCE): 29.5 %
- Dividend Yield: 0.33 %
Why Invest in Clean Science and Technology Ltd. :
- Strong R&D Capabilities: Fosters the evolution of new products as well as processes.
- Diversified Product Portfolio: Decreases the risk of relying on a specific product that may not perform so well or a market that is not very stable.
- Growing Demand: Rising end-user industries for speciality chemicals in the pharmaceuticals, agrochemicals and performance chemicals segment.
- Cost Leadership: Procurement with decreased unit cost and smooth running of procurement operations increases competitiveness.
- Consistent Dividend Payer: Dividend payments that are made often offer some level of assured earnings to the shareholders.
7. Jubilant Ingrevia Ltd.
Established in 1978, Jubilant Ingrevia Ltd. is among India’s premier enterprises engaged in the production of speciality chemicals stocks, life science solutions, and drug substances.
Key Metrics:
- Market Capitalization: ₹9,535 crore
- Revenue: ₹1,033.99 crore
- Net Profit: ₹48.74 crore
- Debt-Equity Ratio: 0.6
- Return on Capital Employed (ROCE): 9.78%
- Dividend Yield: 0.84%
Why Invest in Jubilant Ingrevia Ltd. :
- Diversified Product Portfolio: Reduces risk, which is relevant to a company or business organization where risk may be perceived in terms of reliance on a particular product or a certain market.
- Strong R&D Capabilities: Helps to define the creation of new products or processes.
- Growing Demand: Demand for Specialty chemicals, Life Science ingredients and Drug substances is on the rise.
- Global Presence: Taking export to over 100 countries so that there is less focus on its domestic market.
- Consistent Dividend Payer: Dividend payments that are made frequently ensure that the income received is constant
8. Anupam Rasayan Ltd.
Anupam Rasayan Ltd. is a fast-growing company in India engaged in the manufacturing of agrochemicals/trough chemicals, pharmaceuticals and performance chemicals and started its journey in 1976.
Key Metrics:
- Market Capitalization: ₹8,599crore
- Revenue: ₹167.4 crore
- Net Profit: ₹40 crore
- Debt-Equity Ratio: 0.4
- Return on Capital Employed (ROCE): 9.04 %
- Dividend Yield: 0.32%
Why Invest in Anupam Rasayan Ltd. :
- Strong Market Position: Market leader in the Indian market in the agrochemicals segment.
- Diversified Product Portfolio: This cuts down on the reliance of the organisation on one product or its operations in a particular market.
- Growing Demand: Higher growth rate of demand from agrochemicals, pharmaceuticals and performance chemicals stocks.
- Cost Leadership: Thus, efficiency and cost leadership improve competition.
- Consistent Dividend Payer: Dividend remunerations give the company’s shareholders a stable income.
9. Laxmi Organic Industries Ltd.
Laxmi Organic Industries Ltd was incorporated in 1989 and is based in India it is one of the specialty chemical stocks manufacturers and marketers in India which has a major focus on acetyl intermediates aroma chemicals and many others.
Key Metrics:
- Market Capitalization: ₹7,514 crore
- Revenue: ₹799.96 crore
- Net Profit: ₹44.31 crore
- Debt-Equity Ratio: 0.3
- Return on Capital Employed (ROCE): 9.40%
- Dividend Yield: 0.22%
Why Invest in Laxmi Organic Industries Ltd. :
- Strong Market Position: Market leader of acetyl intermediates in India.
- Diversified Product Portfolio: Reduces the risk associated with the sale of one product or provision of one service.
- Growing Demand: Specialty chemicals are chemicals used in the production of a large number of end products and are indispensable for the production of drugs, agrochemicals, and fragrances.
- Cost Leadership: Cost optimization promotes the company’s competitive advantage.
- Consistent Dividend Payer: It is about dividend payments because a regular payment offers a better reward in the form of a consistent income.
10. Epigral Ltd.
Founded in 2007 as Meghmani Finechem Ltd, Epigral Ltd, is one of the foremost integrated chemical stocks manufacturers in India. The Dahej facility of Epigral is a B&FIIA complex with well-laid infrastructure.
In India, Epigral Stocks Company is the pioneer company in establishing the Epichlorohydrin plant and also the largest capacity CPVC Resin plant. Epigral is also a leading manufacturer of Caustic Soda, Caustic Potash, Chloromethanes, Hydrogen Peroxide, Chlorine and Hydrogen
Key Metrics:
- Market Capitalization: ₹7,011 crore
- Revenue (FY 202-24): ₹526.77 crore
- Net Profit: ₹196 crore
- Debt-Equity Ratio: 0.1
- Return on Capital Employed (ROCE): 17.5%
- Dividend Yield: 0.30%
Why Invest in Epigral Ltd:
- Growing Chemical Industry: The chemical stocks industry of India is expected to expand in the coming years hence positively affecting companies such as Epigral.
- Product Diversification: The risk is also well-diversified due to the establishment’s product range.
- Leadership Position: Epigral currently operates in India being one of the biggest manufacturers of CPVC resins.
- Expansion Potential: The business expansion strategies show the prospects for investors.
Conclusion
The chemical stocks industry in India is expanding year by year and also acting as a good contribution to the growth of the country. This sector has many new firms, investing in which can provide good profit to you.
Here, we have shared with you the list of the top 10 chemical stocks in India. However, these are just a few examples and you should also do your research before going for investment. Do any kind of analysis and make any kind of decision keeping in mind your capacity to take risks or lose capability.
Do you want to grow your money apart from chemical shares? Knowing which bank shares will keep your money safe for a long time and give good profits. We will tell you which banks can become true friends of your money!
Disclaimer: The reader should understand that this article is not an outcome of any financial expertise and should not be regarded as such.
It is always advisable to seek the services of an expert in financial matters before investing. Chemical stocks and other securities have risks and losses can occur, so you should always be ready for that.
FAQS
1. What are the prospects of the chemical industry of India?
The chemical stocks industry holds plenty of growth prospects in India which can be explained by increasing domestic demand, advancing exports, government support for the sector’s development, and further demand for enhancements in the chemical products portfolio.
2. Should invest in chemical stocks for the long term?
Indeed, several chemical stocks nse can be perfectly appropriate for a long-term investment since chemicals are always in demand and are involved in almost every industry due to continuous new developments. Nevertheless, it’s required to start with the comprehensive necessary research and focus on your investment time frame and your risk profile.
3. Why should investors choose to invest in chemical stocks companies?
It is always good to invest in chemicals stocks since the sector plays a very crucial role in the economy of every country, chemicals have a ready market in most industries and the growth rate of the sector is always very high due to new products that are developed as well as new markets that are being tapped.