Curious about chemical stocks? These are shares of companies involved in making chemicals used in various industries. These companies create substances for everyday items, from medicines to cleaning products.
Investors looking for opportunities in dynamic sectors with essential roles in daily life could find chemical stocks intriguing.
Let’s understand what chemical stocks are and a curated chemical stocks List to help you make an informed investment decision.
What are Chemical Stocks?
Chemical stocks represent shares from companies operating in the expansive chemical industry. This industry is diverse, manufacturing a broad array of products, from fundamental chemicals to specialized ones.
Fundamental chemicals serve as raw materials in industries like plastics, textiles, and pharmaceuticals.
In contrast, specialized chemicals, including electronic chemicals, paints, coatings, and personal care products, offer higher value and cater to specific applications. This diverse range makes chemical stocks an interesting investment option.
Best Chemical Stocks List in India
Following are the two of the top chemical stocks in India.
1. Atul Ltd
Established in 1947, Atul Ltd. stands as a chemical company specializing in two main categories: Life Science Chemicals and Performance and Other Chemicals.
Initially focused on dyestuff manufacturing, the company has evolved through mergers, acquisitions, and dedicated research and development efforts.
Presently, Atul Ltd. has a portfolio of over 900 products under 140 brands, operating in aromatics, polymers, pharma intermediates, and crop protection. With a notable 50% contribution from exports to its total sales in 2022, the company has significantly expanded its profitability.
Notably, its Compound Annual Growth Rate (CAGR) for 2022-2023 reached an impressive 11%. In the same period, domestic sales in India saw a 3% rise, increasing from 307 cr to 315 cr, while international sales surged by 20%, climbing from 203 cr to 244 cr.
- Atul Share Price: Rs. 6,800+ (As of January, 2024)
- Atul Market Cap: Rs. 20,072 Cr
2. Deepak Nitrite Ltd
Established in 1970, Deepak Nitrite Ltd. is a prominent chemical manufacturing firm specializing in inorganic, organic, and specialty chemicals. Its diverse product range includes intermediates for industrial explosives, polymers, paints, cosmetics, and more, totaling over 100 products.
The company’s revenue derives from Phenolics, performance products, and specialty/basic chemicals, boasting a commanding 70% market share in sodium nitrite, sodium nitrate, and NitroToluenes.
Recently achieving debt-free status, Deepak Nitrite has experienced impressive growth with a 31.1% CAGR over the last five years. In FY23, its revenue reached Rs 80,196 million, reflecting a notable 17% increase from FY22’s Rs 68,559 million.
- Deepak Nitrite Share Price: Rs. 2,400+ (As of January, 2024)
- Deepak Nitrite Market Cap: Rs. 33,113 Cr
If you are looking to diversify your portfolio and looking to achieve your long-term goals, chemical stocks can be a good addition to your investment strategy. However, do check your risk appetite before investing.
Conclusion
The chemical stocks in India are likely to grow and gain more market space, as we talked about earlier. We’ve shared info about the two best chemical sector stocks in India. That’s the scoop! We trust it guides you in making smart investment choices.
