Best Chemical Stocks in India 2022

The chemical industry of India is a major contributor to the Indian economy, contributing 7% of the country’s Gross Domestic Product (GDP). India’s chemical industry ranks as sixth largest in world, and third in Asia. The value of the chemical industry in India was estimated at 100 billion dollars in 2019.[1] The chemical industry of India generates employment for five million people.

Post-COVID19, several downstream MNCs that used to import the bulk of their chemical requirement from China are now contemplating to supplement this supply from India and other countries to reduce their dependence on China.

Also Check : Best EV Stocks in India 2022

Gujarat Fluorochemicals Limited (GFL)

Wind farm at farmland in summer. Aragon

Gujarat Fluorochemicals Limited (GFL) is an Indian Chemicals Company holds domain expertise in Fluoropolymers, Fluorospecialities, Refrigerants and Chemicals, catering to the material requirements of modern world. The company’s backward-integrated VDF (vinylidene fluoride) facility enables increased capacity utilization of new fluoropolymers. Net Sales at Rs 1,007.48 crore in December 2021 up 58.87% from Rs. 634.16 crore in December 2020. Progress on the company’s electrolyte salt project for lithium ion battery is on track. Strong demand from industries including chemicals, mechanicals, consumer durables and auto bode well for the company.

Pidilite Industries Limited

Pidilite Industries Limited is an incorporated in the year 1969, is a Large Cap company (having a market cap of Rs 124,803.77 Crore) operating in Diversified. In that the share from growth and pioneer categories will increase to 50 per cent of the company’s overall revenue in the next five years. On Jan 28th 2022 the ICICI directly recommended to hold the pidilite industries with a target price of Rs 2640, the last year growth of the industy was upto 28% now Pidilite Industries has decided to explore induction of a strategic partner for the Synthetic Elastomer project with due consideration to techno-commercial factors and completion of a strategic review.

Clean Science and Technology Limited

Clean Science and Technology Limited is chemical manufacturing company that was incorporated in the year 2003. The company incorporated in 2003 as a family-owned business has grown to be the largest manufacturer of some of the chemicals globally. The company mainly focuses on novel and clean processes production products such as performance chemicals, pharmaceutical chemicals, and FMCG chemicals. Clean Science & Technology consolidated net profit rises 18.16% in the December. The brokerage firm JM Financial has a ‘buy’ call for the stock with a target price of Rs 2,500 as it believes that the innovative catalytic process that the company uses in its manufacturing process is a testament to its strong R&D expertise. “This strategy gives the company high off-take visibility along with exceptional margins.

Vinati Organics Limited

Vinati Organics Limited is an Indian company involved in manufacturing specialty chemicals and organic intermediaries. The speciality chemicals and organic intermediaries’ manufacturer is in the process of completing ₹800 crore investments to boost its top line. Vinati Organics plans Rs. 150 crore expansion, aimed for manufacturing four new specialty chemicals and for expanding the present capacity of the PTBBA plant. Its Net Sales up by 65.1% at Rs 368.95 crore in December 2021 from Rs. 223.47 crore in December 2020.

Galaxy Surfactants (GALSURF)

Galaxy Surfactants is a leading specialty chemical company that produces non-ionic, anionic, cationic, amphoteric surfactants and other speciality chemical suppliers serving the Home & Personal Care industry in the domestic as well as the international market. Galaxy has been relentlessly serving all customers while meeting the ever-changing supply chain dynamics. The company has risen to the next level of growth via project expansions and its innovative best-in-class technological manufacturing facilities. The company emerged as among the very few Indian companies and the second Indian Chemical company to be 1.4 times water positive.

NOCIL Ltd

NOCIL Ltd is India’s largest manufacturer and supplier of rubber chemicals. The company is known for its productquality customer services and commitment to environmental care. The company is a part of Arvind Mafatlal Group of Industries a well-known Business House in India with diversified business interests. NOCIL has recommended buy rating on the stock with a target price of Rs 348. the last year growth percentage of the company was share price moved up by 5.34% NOCIL has ~45% market share in domestic market and ~5% market share globally. Upfronting the capex now will ensure NOCIL will take incremental market growth and increase their market share.

Tata chemicals Limited

Tata Chemicals Limited is an Indian global company with interests in chemicals, crop protection and specialty chemistry products headquartered in Mumbai, India. TCL is the 3rd largest global soda ash manufacturer (primary product) operating from plants in India, the US, the UK and Kenya. The management of Tata Chemicals has plans to spend Rs 2,400 crore in expansion, of which Rs 800 crore has been already spent. The balance will be spent over the next two years. The capex would generate revenue of Rs 1,400 crore, with an EBIT of Rs 600 crore by FY25, according to estimates.

Aarti Industries Limited (AIL)

Aarti Industries Limited (AIL) is a leading Indian manufacturer of speciality chemicals and pharmaceuticals with a global footprint. Aarti Industries expects to maintain 20-25% topline growth; plans capex of Rs 350 crore. Aarti Industries has qualified for the PLI scheme for the pharmaceutical sector under ‘Group C’. Rashesh Gogri, VC & MD of the company, said that they will continue to maintain 20-25 percent topline growth.