Are you looking for the best chemical stocks in India to invest in? With so many companies and markets to choose from, it can be overwhelming. In this guide, we’ll provide you with valuable tips and advice on the best chemical stocks in India, so you can make an informed decision.
| S.no. | Best chemical stocks to buy now |
| 1. | Gujarat Fluorochemicals |
| 2. | Navin Fluorine |
| 3. | Deepak Nitrate |
| 4. | Asian Paints |
| 5. | Balaji Amines |
| 6. | Tata Chemicals |
| 7. | SRF Ltd |
| 8. | Alkyl Amines |
| 9. | Pidilite Industries |
| 10. | Asian Paints |
In the above, I have mentioned some of the best stocks in the chemical sector.
Now I want to go into more detail about what the company does and financial analysis, and also share the technical perspective of the company.
Best chemical stocks in India in 2023
Gujarat Fluorochemicals:
The company was incorporated in 2018. It is one of the leading producers of Fluoro-polymers, Fluoro-specialities, Chemicals, and Refrigerants in India.
Financial Outlook of the company
The company has a market capitalization of ₹ 33,579 Cr.
Stock P/E is at 27.8 and Industry P/E is at 24.9 which shows that shows the stock is not that much overvalued and it is trading near the industry P/E.
Gujarat Fluorochemicals Limited reported a standalone revenue of INR 1,464.2CR in the December qtr as against INR 1,480CR in the September quarter, EBITA stood at INR 1,948.17CR on TTM basis as compared to INR 1,329.03CR.
Net profit stood at INR 1,628CR as against INR 1,042CR on YOY BASIS.
Navin Fluorine:
Navin Fluorine is engaged in producing refrigeration gases, inorganic fluorides, and specialty organofluorines and offers contract research and manufacturing services.
Financial Outlook of the company
The company has a market capitalization of ₹ 21,109 Cr.
Debt to equity is 0.31 and Stock P/E is at 67.2 levels.
Navin Fluorine reported a net profit of INR 82CR as against INR 64CR on DEC 22. Revenues are INR 423CR as compared to the previous Sept quarter INR 366.4CR. YOY sales growth increased by 15.41% in Dec qtr.
FII decreased shareholding in Dec qtr 19.19 from 20.07. DII increased shareholding from 22.67 to 23.77 in Dec qtr.
Deepak Nitrate:
Deepak Nitrate is a chemical manufacturing company based out of Gujarat, India. It is a leading manufacturer of organic, inorganic, fine, and specialty chemicals. It also manufactures a wide range of intermediates for use in industrial explosives, paints, cosmetics, polymers, optical brighteners, and others. (Source: Screener)
Financial Outlook of the company
The Market Capitalisation of Deepak Nitrate is ₹ 24,639 Cr.
Stock is trading with a P/E of 27.8. EPS of the latest qtr is ₹ 8.3.
Sales Decreased by 7.22% in the December quarter. The operating profit is INR 160CR IN Q4FY23 as against INR 140CR in Q3 FY22. Net profit in Q4 FY23 is INR 113CR as against INR 159 Q3 FY22.
Net profit as per TTM basis is INR 512 CR as compared to March 2022 in INR 486CR.
Mutual Funds have increased holdings from 5.70% to 5.93% in Dec 2022 qtr.
FII has increased holdings from 8.45% to 8.72% in Dec 2022 qtr.
Institutional Investors have increased holdings from 20.46% to 22.47% in Dec 2022 qtr.
Also Read: Vijay Kedia buys stake in Siyaram Silk Mill share
Asian Paints:
Asian Paints group is the largest paint manufacturer in India. The company is engaged in the business of manufacturing varnishes, enamels or lacquers, surfacing preparation, organic composite solvents, and thinners.
Asain paints manufacture metal sanitary ware such as baths, sinks, washbasins, and similar articles. Recently they enter into interior design products.
Financial Outlook of the company
In the last year stock doesn’t give much return. After stock made a 52-week high of ₹ 3,582 and after that, we have seen selling pressure.
YOY Sales Growth of 0.41% in Q4 FY23 as compared to 19.38% in Q3 FY22.But the net profit increased by INR 323CR in Q4 FY23.
Mutual Funds have decreased holdings from 3.70% to 3.67% in Q4 FY22
FII investors decreased from 1209 to 1191 in Q4 FY22 qtr.
Balaji Amines:
The company specializes in manufacturing Methylamines, Ethylamines, Derivatives of specialty chemicals, and Pharma Excipients.
Financial Outlook of the company
The company has delivered good profit growth of 35.5% CAGR over the last 5 yrs.
Sales of INR 413CR in Q4 FY22 as compared to the previous Q3 FY22 of INR 451CR.
Net profit in Q4 FY22 is 36CR as compared to INR 61CR in Q3 FY22.
Tata Chemicals:
It is the second-largest producer of soda ash in the world. Soda ash is also used in metal refining, textile processing, etc. It is used in the manufacture of cement Caustic soda is used for manufacturing rayon, pulp, paper, and gypsum-used in pharmaceuticals, insecticides, and bromine.
Financial Outlook of the company
Revenue increased from INR 1185CR in Sept qtr to INR 1218CR.
EBITA declined from INR 285CR to INR 248CR. Net profit also declined to INR 190CR from INR 243CR.
SRF Ltd:
SRF is a leader in engineering plastics, refrigerants, and industrial yards in India. The company exports two-thirds of its refrigerant gas production to international buyers. manufactures PET films that are used in the packaging of food, cosmetics, and personal and healthcare products.
Board has approved investment in an Agrochemical intermediate project, which involves an investment of Rs 1100mn to meet expected demand in the future.
Financial Outlook of the company
SRF has a market capitalization of 67,092.
The company’s standalone net profit has increased from INR 439CR in Q3 FY22 to INR 495CR in Q4 FY23. Also, Q4 FY23 EPS has increased to 16.7 from 14.81.
Stock has a P/E of 30.5 and Industry P/E stood at 24.9. As per the Stock P/E analysis, SRF is not that much overvalued. The operating profit margin increased by 4% in Dec QTR.
Alkyl Amines:
Alkyl Amines is one of the leading manufacturers of aliphatic amines in India. The Company was incorporated on October 17th, 1979, and is presently engaged in the manufacturing and selling of specialty chemicals.
Financial Outlook of the company
The stock has a P/E of 57 which is overvalued. The company has delivered good profit growth of 34.8% CAGR over the last 5 years.
Operating profit margin decreased by 2% in Dec QTR. Net profit in Q4 FY22 is INR 46CR which is less than from Sept QTR INR 52CR.
Pidilite Industries:
Pidilite Industries Limited is an Indian adhesives manufacturing company based in Andheri, Mumbai.
Financial Outlook of the company
Sales in the December quarter are INR 2,710CR up by 4.87% from INR 2715CR September quarter.
Operating profit in the December quarter is INR 468CR as against INR464 CR. standalone Net profit is INR 296CR in December 2022 quarter from INR 337CR in September 2022. Consolidated net profit is INR 308CR in the December quarter from INR 338Cr.
DIIs have increased their position in the December quarter from 8.12 to 7.73.
UPL Ltd:
UPL share is engaged in the agro-business of production and sale of agrochemicals, field crops, and vegetable seeds and non-agro-business of production and sale of industrial chemicals, chemical intermediates, and specialty chemicals.
Financial Outlook of the company
stock is trading with a P/E of 12.9 and the stock is undervalued in terms of P/E.
if we talk about the standalone sales in the December quarter of 2022 is INR 4,652CR up by 15.58% from INR 5,543CR.
standalone net profit in the December quarter is INR 323CR from INR 336CR.
As per TTM basis net profit is INR1,841CR from INR1,176CR.
Conclusion
I have shared some of The 10 best chemical stocks to invest in right now. Be sure to invest in the stocks after consulting with your financial advisor.