Hi, Friends if you searching for the best chemical sector stocks then you landed in the right place where you can see the top 10 best chemical sector stocks in India 2023. Due to the development of various industries, the need for chemicals is raising year by year.
Also, the government takes so many necessary actions like Made In India, creating a lot of opportunities for chemical companies. So there will be a huge market in the chemical industry in the future. Let’s see the Best chemical sector stocks in India in 2023.
Indian chemical sector overview & Future
India is a developing country, also India is the fastest-growing county in the world. Due to the various industries’ growth, the need for chemicals and the chemical sector is booming. Especially after the Covid crisis, many global countries are willing to buy Indian products, especially Pharma, and raw chemicals.
Industry evaluation, manufacturing, and pharma industries will make a huge impact on the chemical sectors in the future. Experts say the Indian Chemical sector is expected to grow to INR 20 Lakhs Crore ($277bn) by 2035. So, investors are interested in the Best chemical sector stocks.
Deepak Nitrite Ltd
Deepak Nitrite Ltd is the best chemical stock in India currently, with a total market cap of INR 25,025 Cr. This company has to be a multi-bagger in FY21 with returns of 172% of its shareholders. The company has strong financial fundamentals that help to perform well in the share market and can show up stable growth over time. In the last five years, Deepak Nitrite Ltd has given investors a yield of up to 1940%. Also, it has very low debt-to-equity ratio in the last 3 financial years.
Clean Science And Technology
Clean Science & Technology mainly produces natural chemicals, founded in 2003. The company has an excellent track record in terms of sales and revenue. It shows an extraordinary share growth with 5 years CAGR of 37.3%, and ROE of 40.4% in the last 3 years. The company is debt-free, as well as maintaining a good dividend payout of 50.4%.
Clean Science And Technology is a mid-cap chemical sector company with a total market cap of INR 14,955Cr. The company has zero debt value over a period of time. It shows a great return with a dividend yield of 0.20%.
Alkyl Amines is a Mid-cap company in the chemical sector stocks. The company was incorporated in 1979, it produces chemicals mainly based in the pharma, agrochemical, rubber, chemical, and water treatment industries. Alkyl Amines’ last 5 years CAGR of 34.8% returns to investors.
If you see the company’s financial results in the last three to two financial years it shows great numbers in terms of revenue and sales. In FY 22 the company’s ROE is 25.24%, and dividend yield 0.42%.
Balaji Amines is one of the largest chemical production companies as well as the best chemical sector stocks in India. The company shows stable growth over the period of time. The company has three business segments the manufacturer of Amines and special chemicals, the hotel sector, and other businesses. The company has a great track record with 5 years CAGR of 35.5% returns.
Balaji Amines is a small-cap company that works in the chemical sector, which has a total market cap of INR 7,657Cr. The company shows excellent results in the last couple of years with a Return on Equity of 34.56% and a dividend yield of 0.25%
Chemplast Sanmar is a small-cap company with a total market cap of INR 6,438 Cr. The company produces chemicals for the pharma, agrochemical, pulp and paper, textile, and water treatment industries. The company has had a CAGR of 67% over the last 3 years.
As per the screener report in last 3 years Chemplast Sanmar has an average CAGR of 75%, with Return On Equity 95.70%. And the company has debt to equity ratio of 0.52. The company is mainly manufacturer of speciality paste PVC resin, cholorochemicals, hydrogen peroxide, and custom manufactured chemicals.
Tanfac Industries is a subsidiary of the Aditya Birla Group Of Companies, which was established in 1974. The company is the largest manufacturer of Fluorine chemicals. Also, the company started as a single-product company, but right now it exporting more special chemicals in aluminum fluorine to various countries. It shows a great ROE of 34.22% in the last 3 years.
The company showed a great results in terms of growth and revenue, with the last 5 years CAGR of 42.1%. Tanfac Industries manufacture chemicals like sulphuric Acid, Pottasium Flouride, Pottasium Biflouride, Diluted Hydroflouric Acid. Tanfac Industries is the small cap company with total market cap of INR 1,270 Cr.
Lords Chloro Alkali
Lords Chloro Alkali is a small-cap company with a total market valuation of INR 481 Cr, the company was founded in 1979. The company mainly produces caustic soda, flakes, hydrogen gas, and sodium hypochlorite. The company’s last 5-year CAGR is 10.9%.
Lords Cholor Alkali is another best chemical sector stocks in India which can gave Return On Equity of 32.27% in last financial year. The company has last 5 years CAGR of 15%, and debt to equity ratio of 0.14. The company is produce chemicals based on textile and industry purposes.
Nikhil Adhesives is one of the best chemical sector stocks you should be aware of, this small-cap company has a tremendous track record of 5-year revenue growth of 65.4%, and 3 years ROE of 28.4%. Also, it has a low level of debt-to-equity ratio which is 0.36.
Nikhil Adhesives Ltd was established on 1986, with wide range of product portfolio like VAM, BAM, EA, etc. And the company has international clients and 500 dealers, distributors, and 3000 retail outlets in all over India.
Fairchem Organic is an Indian-public sector company that was incorporated in 2019. The company mainly produces special chemicals, including oleo chemicals, and intermediate neutraceuticals. The company’s ROE for the last 3 years is 31.50%, and its debt free.
Fairchem Organic is the largest producer of Dimer acid in India. Also manufacture blended chemicals in day to day life products like soaps, detergents, shampoos. The company produce chemicals like Aroma chemicals, Nutraceuticals, Oleochemicals.
Primo Chemicals is also known as Punjab Alkalis and Chemicals Ltd. The company was established in 1975 and is the core manufacturer of caustic soda lye. Primo Chemicals is the largest supplier of caustic soda in the north Indian region. The company has 3 years ROE of 20.3%.
Primo Chemicals is owned by Punjab Alkalies and Chemicals (PACL) which is promoted by Punjab State Industrial Development Corporation Limited. The company is manly produce caustic soda lye, caustic soda flakes, liquid chlorine, HCL Acid, Hydrogen gas.
10 Best Chemical Stocks In India 2023
|Name Of Company||CMP Price||Revenue FY2022|
|Deepak Nitrite Ltd||1,840.00||Rs. 1,961.65 Cr.|
|Clean Science And Technology||1,461.85||Rs. 249,91 Cr.|
|Alkyl Amines||2,448.90||Rs. 45,70 Cr.|
|Balaji Amines||2,483.60||Rs. 588.47 Cr.|
|Chemplast Sanmar||405.60||Rs. 41 cr.|
|Tanfac Industries||1,337.00||Rs. 320.2 Cr.|
|Lords Chloro Alkali||210.15||Rs. 74.63 Cr.|
|Nikhil Adhesives||122.00||Rs. 814.32 Cr.|
|Fairchem Organic||1,092.95||Rs. 643.55 Cr.|
|Primo Chemicals||78.66||Rs. 192.39 Cr.|
The Indian Chemical sector has a bright future in the upcoming days. Today chemicals are used in various aspects like pharma, agriculture, manufacturing, and many more. Due to the growing industrial market, there will be a huge opportunity for chemical companies.
I mentioned here the best chemical sector stocks in India in 2023 based on their return on equity ratios. This article is only for education purposes, you can take reference from it. Before investing make sure to analyze the current market conditions.
What is the future of the chemical sector in India?
Domestic demand is expected to rise from $170 billion to $180 billion in 2021 to $850 billion to $1,000 billion by 2040 Domestic demand is expected to rise from $170 billion to $180 billion in 2021 to $850 billion to $1,000 billion by 2050
Which is the No 1 company in the chemical sector in India?
Rossari Biotech This is The 1 Company In Chemical Sector In India
Is chemical sector stocks good for long-term investment?
Yes you can definitely invest in the above-mentioned chemical stock in India
Also Read: Best Monopoly Stocks In India 2023