Top 10 Best Chemical Stocks in India to Buy in 2023 – Complete Analysis and Research

Chemical stocks have been buzzing in the Indian Stock market since 2020. Some of the stocks have given multifold returns in the past couple of years. In this article, let’s look at the Top 10 Best Chemical Stocks in India.

Join us as we delve into market trends, financial metrics, and in-depth analyses of top-performing companies.

Consider reading: Best Renewable Energy Stocks in India

List of Top 10 Best Chemical Stocks in India

Pidilite Industries: The Industry Leader in Chemical Stocks in India

Pidilite Industries Limited is an Indian adhesives manufacturing company based in Andheri (East), Mumbai. The company is the dominant and leading adhesives company in India.

Pidilite also manufactures products across verticals such as art materials and stationery; food and fabric care; car products, adhesives, and sealants; and specialty industrial products like adhesives, pigments; textile resins, leather chemicals, and construction chemicals.

Pidilite Industries’ Products in the Chemical Industry

Pidilite markets the Fevicol range of adhesives. Its other brands are FeviKwik, Dr. Fixit, Roff, Cyclo, Ranipal, Hobby Ideas, M-seal, and Acron. It also markets and manufactures WD-40 in India.

These products cover a wide range of applications in the chemical industry, from adhesives to construction chemicals.

Pidilite’s Position in the Chemical Industry

Pidilite Industries has a strong presence in the adhesives and sealants market in India. The company’s brand, Fevicol, is a household name in the country and is synonymous with adhesives.

The company’s wide range of products and their application in various industries, including art, food and fabric care, automotive, and construction, make it a significant player in the chemical industry.

Growth Outlook for Pidilite

Pidilite Industries has shown consistent growth over the years. The company’s revenue for FY23 was ₹11,752 crore (US$1.5 billion), with an operating income of ₹1,723 crore (US$220 million) and a net income of ₹1,282 crore (US$160 million).

The company has made strategic acquisitions to strengthen its portfolio, such as a 70% stake in Nina Waterproofing Systems and CIPY Polyurethanes, and the acquisition of Huntsman Corporation’s Indian subsidiary to strengthen their retail adhesives and sealants portfolio. These acquisitions indicate a positive growth outlook for the company.

Pidilite Industries Key Financials Metrics (FY23)

Key Takeaways for Pidilite Industries

• Pidilite Industries is a leading player in the adhesives market in India with a wide range of products catering to various industries.
• The company has made strategic acquisitions to strengthen its product portfolio and market presence.
• The company’s consistent financial performance indicates a positive growth outlook.

Pidilite Stock is one of the consistent performers in the stock market and has given outstanding returns. Pidilite is undoubtedly one of the Best Chemical Stocks in India.

SRF Limited: The Most Resilient Chemical Stock in india

SRF Limited is an Indian multi-business chemicals conglomerate engaged in the manufacturing of industrial and specialty intermediates.

The company’s business portfolio covers fluorochemicals, specialty chemicals, packaging films, technical textiles, and coated and laminated fabrics.

It has a workforce of more than 8,000 employees working across eleven manufacturing plants in India and one each in Thailand, South Africa, and Hungary. The company exports to more than 90 countries.

SRF Limited’s Products in the Chemical Industry

SRF’s product portfolio is diverse and includes fluorochemicals, specialty chemicals, packaging films, technical textiles, and coated and laminated fabrics.

The company’s fluorochemicals business includes the sale of refrigerants, pharma propellants, and industrial chemicals.

The specialty chemicals business is involved in the development and production of advanced intermediates for agrochemical and pharmaceutical applications.

The packaging films business manufactures BOPET and BOPP films for use in various industries.

SRF’s Position in the Chemical Industry

SRF is a market leader in most of its business segments in India and commands a significant global presence in some of its businesses/products, namely Difluoro & Trifluoro Alkyl Intermediates (global no. 1), Nylon 6 Tyre Cord (global no. 2), and Belting Fabrics (global no. 3).

SRF is the only Indian manufacturer of ozone-friendly refrigerants, namely F 134a and F 32, both of which it has developed using indigenous technology.

With the addition of F 125, SRF is now the largest producer and seller of refrigerants in India and has further consolidated its market leadership.

SRF Limited’s Growth Outlook

SRF Limited has shown consistent growth over the years. The company’s revenue for FY23 was ₹14,870 crore (US$1.9 billion), with an operating income of ₹3,193 crore (US$400 million) and a net income of ₹2,162 crore (US$270 million).

The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a positive growth outlook.

SRF Limited’s Key Financials (FY23)

Key Takeaways for SRF Limited

• SRF Limited is a leading player in the chemical industry with a diverse product portfolio.
• The company is a market leader in several business segments and has a significant global presence.
• The company’s consistent financial performance and strong market presence indicate a positive growth outlook.

SRF has been a consistent performer and is one of the Best Chemical Stocks in India.

Linde India Limited

Linde India Limited, a subsidiary of the BOC Group, UK, is a leading player in the industrial and medical gases sector in India.

The company is primarily engaged in the manufacture of industrial and medical gases and the construction of cryogenic and non-cryogenic air separation plants.

Linde India operates in three main business segments: Gas and Related Products, Healthcare business, and Project Engineering division (PED).

Linde India Limited’s Products in the Chemical Industry

Linde India’s product portfolio is diverse and includes:

1. Gas and Related Products: This segment includes pipeline gas supplies to large industrial customers like primary steel, glass, and chemical industries. It also supplies liquefied gases through Cryogenic tankers (Bulk) to cater to demand across a wide range of industrial sectors and compressed gas supply in cylinders (Packaged Gas) for meeting smaller demand for gases mainly across the fabrication, manufacturing, and construction industry.
2. Healthcare business: Linde provides high-quality gases for pharmaceutical use such as medical oxygen, synthetic air, and nitrous oxide. In addition, it provides state-of-the-art medical gas distribution systems to major hospitals.
3. Project Engineering division (PED): This division is responsible for the design, engineering, supply, installation, testing, and commissioning of Air Separation plants and related projects on a turnkey basis.

Linde India Limited’s Position in the Chemical Industry

Linde India is a leading player in the industrial and medical gases sector in India. The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a strong position in the chemical industry.

Growth Outlook for Linde India Limited

Linde India has shown a compounded sales growth of 12% over the last 3 years and a compounded profit growth of 53% over the same period.

The company’s stock price CAGR over the last 3 years is 86%. This indicates a strong growth outlook for the company.

Linde India Limited’s Key Financials (TTM as of Dec 2022)

Key Takeaways for Linde India Limited

• Linde India Limited is a leading player in the industrial and medical gases sector in India.
• The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a strong position in the chemical industry.
• The company’s consistent financial performance and strong growth outlook make it a compelling consideration for investors interested in the chemical industry.

Solar Industries India Ltd

Solar Industries is one of the world’s leading manufacturers of bulk explosives, packaged explosives, and initiating systems. These products find applications in the mining, infrastructure, and construction industries.

In 2010, Solar Industries also ventured into the defense segment and diversified into manufacturing propellants for missiles and rockets, warheads, and warhead explosives.

Solar Industries India Ltd’s Products in the Chemical Industry

Solar Industries’ product portfolio is diverse and includes:

1. Industrial Explosives: This segment, which contributed to 76% of FY22 revenue, includes explosives manufactured by the company used by a wide range of segments from the Mining Industry to the Housing and Real Estate industry. The company has a presence spread across 51+ nations.

Solar Industries India Ltd’s Position in the Chemical Industry

Solar Industries is a leading player in the explosives manufacturing sector, both in the industrial and defense segments.

The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a strong position in the chemical industry.

Growth Outlook for Solar Industries India Ltd

Solar Industries has shown a compounded sales growth of 40% over the last 3 years and a compounded profit growth of 28% over the same period.

The company’s stock price CAGR over the last 3 years is 52%. This indicates a strong growth outlook for the company.

Solar Industries India Ltd’s Key Financials (TTM as of Dec 2022)

Key Takeaways for Solar Industries India Ltd

• Solar Industries is a leading player in the explosives manufacturing sector, with a strong presence in both the industrial and defense segments.
• The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a strong position in the chemical industry.
• The company’s consistent financial performance and strong growth outlook make it a compelling consideration for investors interested in the chemical industry.

Gujarat Fluorochemicals Limited

Gujarat Fluorochemicals Limited (GFL) is one of the largest producers (by volume) of chloromethane, refrigerants, and polytetrafluoroethylene (PTFE) in India.

The company was incorporated in 1987 and is a subsidiary of Inox Leasing and Finance Limited. GFL has two manufacturing facilities in Gujarat, a refrigerant plant at Ranjitnagar near Ghoghmba town Panchmahal, and a PTFE facility at Dahej.

It has two subsidiaries – Gujarat Fluorochemicals Americas LLC and Gujarat Fluorochemicals GmbH to cater to American and European operations respectively.

Gujarat Fluorochemicals Limited’s Products in the Chemical Industry

GFL’s product portfolio includes chloromethane, refrigerants, and polytetrafluoroethylene (PTFE). These products find applications in a wide range of industries, including the refrigeration and air conditioning industry, the pharmaceutical industry, and the agrochemical industry.

Gujarat Fluorochemicals Limited’s Position in the Chemical Industry

GFL is a leading player in the industrial refrigerant manufacturing sector in India. The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a strong position in the chemical industry.

Growth Outlook for Gujarat Fluorochemicals Limited

GFL has shown consistent growth over the years. The company’s revenue for FY23 was ₹5,775 crore (US$720 million), with a net income of ₹1,328 crore (US$170 million).

The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a positive growth outlook.

Gujarat Fluorochemicals Limited’s Key Financials (FY23)

Key Takeaways for Gujarat Fluorochemicals Limited

• Gujarat Fluorochemicals Limited is a leading player in the industrial refrigerant manufacturing sector in India.
• The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a strong position in the chemical industry.
• The company’s consistent financial performance indicates a positive growth outlook.

Deepak Nitrite Ltd

Deepak Nitrite Ltd is an Indian chemical manufacturing company with a diverse portfolio of over 100 products. The company’s manufacturing facilities are located at Nandesari and Dahej in Gujarat, Roha and Taloja in Maharashtra, and Hyderabad in Telangana.

Deepak Nitrite produces a spectrum of chemicals, including agrochemicals, colorants, rubber, pharmaceuticals, specialty, and fine chemicals.

Deepak Nitrite Ltd’s Products in the Chemical Industry

Deepak Nitrite’s product portfolio is diverse and includes:

1. Agrochemicals: These are chemicals used in agriculture, including pesticides, insecticides, fungicides, herbicides, and chemical fertilizers.
2. Colorants: These are substances used to impart color to other materials or mixtures.
3. Rubber: The company produces chemicals used in the rubber industry.
4. Pharmaceuticals: Deepak Nitrite produces a range of pharmaceutical intermediates.
5. Specialty and Fine Chemicals: These are high-purity chemicals used in a variety of industries and applications.

Deepak Nitrite Ltd’s Position in the Chemical Industry

Deepak Nitrite is a leading player in the chemical manufacturing sector in India. The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a strong position in the chemical industry.

Growth Outlook for Deepak Nitrite Ltd

Deepak Nitrite has shown consistent growth over the years. The company’s revenue for FY23 was ₹8,019 crore (US$1.0 billion), with a net income of ₹852 crore (US$110 million).

The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a positive growth outlook.

Deepak Nitrite Ltd’s Key Financials (FY23)

Key Takeaways for Deepak Nitrite Ltd

• Deepak Nitrite Ltd is a leading player in the chemical manufacturing sector in India.
• The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a strong position in the chemical industry.
• The company’s consistent financial performance indicates a positive growth outlook.

Tata Chemicals Limited

Tata Chemicals Limited is a global company based in Mumbai, India, with interests in chemicals, crop protection, and specialty chemistry products.

It is one of the largest chemical companies in India with operations in India, Europe, North America, and Africa. The company is a subsidiary of the Tata Group and has a publicly listed subsidiary called Rallis India.

Tata Chemicals Limited’s Products in the Chemical Industry

Tata Chemicals’ product portfolio is diverse and includes:

1. Basic Chemistry Products: These include soda ash, sodium bicarbonate, caustic soda, chlorine, liquid bromine, gypsum, phosphoric acid, cement, and sulphuric acids.
2. Energy Sciences Products: The company is involved in the production of Li-ion battery packs and the recycling of spent Li-ion batteries.
3. Nutritional Sciences Products: Tata NQ offers nature-inspired and science-backed ingredient and formulation solutions catering to human and animal health.
4. Material Sciences Products: These include nano zinc oxide and specialty silica.
5. Agro Sciences Products: The company offers crop protection and nutrition, animal nutrition, seeds, household products, and contract manufacturing.

Tata Chemicals Limited’s Position in the Chemical Industry

Tata Chemicals is a leading player in the chemical industry in India. The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a strong position in the chemical industry.

Growth Outlook for Tata Chemicals Limited

Tata Chemicals has shown consistent growth over the years. The company’s revenue for FY23 was ₹17,007 crore (US$2.1 billion), with a net income of ₹2,317 crore (US$290 million).

The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a positive growth outlook.

Tata Chemicals Limited’s Key Financials (FY23)

Key Takeaways for Tata Chemicals Limited

• Tata Chemicals Limited is a leading player in the chemical industry in India.
• The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a strong position in the chemical industry.
• The company’s consistent financial performance indicates a positive growth outlook.

Tata Chemicals has the famous Tata Brand name on it. It is definitely one of the Best Chemical Stocks in India.

Navin Fluorine International Ltd

Navin Fluorine International Ltd is an Indian chemical company primarily engaged in producing refrigeration gases, inorganic fluorides, and specialty organofluorines, and offering contract research and manufacturing services.

The company has a portfolio of over 50 fluorinated compounds developed over the years.

Navin Fluorine International Ltd’s Products in the Chemical Industry

Navin Fluorine’s product portfolio is diverse and includes:

1. Refrigeration Gases: These are gases used in refrigeration and air conditioning systems.
2. Inorganic Fluorides: These are fluorides that do not contain an organic group.
3. Specialty Organofluorines: These are organic compounds that contain one or more fluorine atoms.
4. Contract Research and Manufacturing Services: The company offers these services to other companies in the chemical industry.

Navin Fluorine International Ltd’s Position in the Chemical Industry

Navin Fluorine is a leading player in the production of refrigeration gases, inorganic fluorides, and specialty organofluorines in India.

The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a strong position in the chemical industry.

Growth Outlook for Navin Fluorine International Ltd

Navin Fluorine has shown a compounded sales growth of 12% over the last 10 years, 13% over the last 5 years, and 17% over the last 3 years.

The compounded profit growth is 22% over the last 10 years, 13% over the last 5 years, and -8% over the last 3 years.

The return on equity has been 17% over the last 10 years, 18% over the last 5 years, 16% over the last 3 years, and 15% last year. This indicates a strong growth outlook for the company.

Navin Fluorine International Ltd’s Key Financials (FY23)

Key Takeaways for Navin Fluorine International Ltd

• Navin Fluorine International Ltd is a leading player in the production of refrigeration gases, inorganic fluorides, and specialty organofluorines in India.
• The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a strong position in the chemical industry.
• The company’s consistent financial performance indicates a positive growth outlook.

Navin Fluorine is a popular chemical stock in the retail stakeholder community in India.

Atul Ltd

Atul Ltd is a diversified and integrated Indian chemical company that is part of the Lalbhai Group, Gujarat. The company operates mainly under two segments, Life Science Chemicals, and Performance and Other Chemicals under 9 Businesses.

Over the years, Atul Ltd has manufactured many products for the first time in India, including Vat Dyes, crop care chemicals, Phosgene, Carbamite, 2,4-D Acid, para Cresol, and tissue culture-raised date palms.

Atul Ltd’s Products in the Chemical Industry

Atul Ltd’s product portfolio is diverse and includes:

1. Life Science Chemicals: These are chemicals used in the life sciences industry, including pharmaceuticals and biotechnology.
2. Performance and Other Chemicals: These are chemicals used in various industries for enhancing the performance of products.

Atul Ltd’s Position in the Chemical Industry

Atul Ltd is a leading player in the chemical industry in India. The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a strong position in the chemical industry.

Growth Outlook for Atul Ltd’s

Atul Ltd has shown a compounded sales growth of 10% over the last 10 years, 10% over the last 5 years, 9% over the last 3 years, and 1% over the last year.

The compounded profit growth is 16% over the last 10 years, 16% over the last 5 years, -3% over the last 3 years, and -4% over the last year.

The return on equity has been 17% over the last 10 years, 17% over the last 5 years, 15% over the last 3 years, and 13% last year. This indicates a strong growth outlook for the company.

Atul Ltd’s Key Financials (FY23)

Key Takeaways for Atul Ltd

• Atul Ltd is a leading player in the chemical industry in India, with a diverse product portfolio and a strong presence in both the domestic and international markets.
• The company’s consistent financial performance indicates a positive growth outlook.

Atul Organics stocks has given good returns over the years making it one of the Best Chemical Stocks in India.

Vinati Organics Ltd

Vinati Organics Ltd, incorporated in 1989, is a manufacturer of specialty organic intermediaries and monomers. The company’s product profile is diverse and includes:

1. Specialty Aromatics: Iso butyl benzene/ IBB, N-Butyl Benzene, Secondary Butyl Benzene, Tertiary Amyl Benzene, 3- Phenylpentane, The C10 Aromatic solvent, 4 -Butylaniline.
2. Specialty Monomers: 2-acrylamido 2-methyl Propane Sulphonic Acid (ATBS), Sodium Salt Of 2-acrylamido-2-methylpropane Sulphonic Acid (NAATBS), N-tertiary Butyl Acrylamide (TBA), N-tertiary Octyl Acrylamide (TOA).
3. Butyl Phenols: Ortho Tertiary Butyl Phenol/2 Tert Butylphenol, Para Tertiary Butyl Phenol/ 4 Tert Butyl Phenol, 2, 4 Di Tert Butylphenol, 2, 6 Di Tert Butylphenol.
4. Other Specialty Products: Isobutylene, Methanol, High purity Methyl Tertiary Butyl Ether, Tertiary Butylamine, Para tertiary butyl Benzoic Acid, Methyl 4-Tertiary butyl benzoate, Mixed Hexene.
5. Miscellaneous Polymers: Vintreat Polymer, VINPLAST 245, VINFLOW HT, Isohexane, CAS 64742-49-0.

Vinati Organics has shown consistent growth in sales and profits over the years. The company has reduced its debt and is almost debt free. It has been maintaining a healthy dividend payout of 19.3%.

Vinati Organics Ltd’s Position in the Chemical Industry

Vinati Organics is a leading player in the specialty chemicals segment in India. The company’s diverse product portfolio and its strong presence in both the domestic and international markets indicate a strong position in the chemical industry.

Growth Outlook for Vinati Organics Ltd

Vinati Organics has shown a compounded sales growth of 14% over the last 10 years, 23% over the last 5 years, 27% over the last 3 years, and 29% over the last year.

The compounded profit growth is 21% over the last 10 years, 26% over the last 5 years, 11% over the last 3 years, and 32% over the last year.

The return on equity has been 24% over the last 10 years, 23% over the last 5 years, 21% over the last 3 years, and 23% last year. This indicates a strong growth outlook for the company.

Vinati Organics Ltd’s Key Financials (FY23)

Key Takeaways for Vinati Organics Ltd

• Vinati Organics Ltd is a leading player in the specialty chemicals segment in India, with a diverse product portfolio and a strong presence in both the domestic and international markets.
• The company’s consistent financial performance indicates a positive growth outlook.

Vinati Organics with its diverse Chemical product range is one of the Best Chemical Stocks in India.

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Final Thoughts on Best Chemical Stocks in India

We’ve traversed the intricate landscape of the Indian chemical industry, highlighting some of the most promising stocks currently on the market.

These companies, with their proven track records, robust growth, and stable management, present compelling opportunities for both short-term traders and long-term investors.

However, like all investments, these too come with their share of risks. Therefore, it’s essential to carry out comprehensive research and potentially seek professional advice tailored to your unique financial goals.

The Indian chemical industry, teeming with potential, stands as a testament to the country’s evolving economic narrative.

Remember, investing wisely is not just about picking the best chemical stocks in India, but also understanding market trends, sectoral growth, and your own risk tolerance.

Happy investing!

FAQs on Best Chemical Stocks in India

Which chemical is highest in demand?

The high demand for polymers is driven by the increasing use of plastic products and urbanization. In fact, polymers are expected to experience an 8% CAGR in demand from FY 2019 to 2023. This trend directly contributes to the chemical’s heightened demand.

What Are Chemical Stocks?

Chemical stocks refer to shares in companies engaged in the chemical industry. These companies could be involved in various sub-sectors, including specialty chemicals, agricultural chemicals, commodity chemicals, industrial gases, or diverse chemical manufacturing, among others.

Why Invest in Chemical Stocks in India?

Investing in chemical stocks in India can be profitable due to the rapid growth of the chemical industry in the country. The sector is witnessing expansion due to robust domestic demand, government initiatives to boost manufacturing, and increasing exports. However, like any investment, chemical stocks also carry risks, and these should be evaluated before making an investment decision.

How to Choose the Best Chemical Stocks in India?

Choosing the best chemical stocks involves researching individual companies and their financials, understanding the current market trends, and making projections about future demand. Key factors to consider include the company’s profitability, debt levels, competitive position, management quality, and growth potential.

What Are Some of the Top Chemical Stocks in India?

Some of the top chemical stocks in India include companies like Pidilite Industries, SRF Ltd, Tata Chemicals Ltd, and Atul Ltd. Always check the most recent and relevant data before investing.

Are Chemical Stocks in India Volatile?

Like any stock, chemical stocks can be volatile, influenced by various global and domestic factors. This includes fluctuations in commodity prices, policy changes, exchange rates, demand-supply dynamics in the end-user industries, and more. It’s essential to monitor these factors and diversify your investment portfolio to manage risk.

Are There Any Risks Involved in Investing in Chemical Stocks?

Yes, investing in chemical stocks involves risks such as market volatility, regulatory changes, environmental concerns, global economic conditions, and company-specific risks. It’s important to conduct thorough due diligence and understand the risks before investing.

How Can I Start Investing in the Best Chemical Stocks in India?

To start investing in chemical stocks in India, you need a Demat and trading account with a registered broker. Once you have an account, you can buy and sell shares through the trading platform provided by your broker. Consider seeking advice from a financial advisor or conducting thorough research before starting your investment journey.