Despite the slowdown in the Indian economy, the chemical industry is one sector that continues to deliver excellent returns for investors and business owners alike. The chemical industry in India is expected to grow at a 13 percent CAGR over the next 5 years. So what are the stocks that chemical investors must keep an eye on in 2020?
In this blog, we highlight the best-performing chemical companies in India.
1. Vinati Organics
Vinati Organics is a leading manufacturer of specialty chemicals and organic intermediaries. The company is currently valued at Rs 10,000 crore and has given returns of nearly 3,200 percent over the last decade. Compared to this, Tata Chemicals, India’s largest chemical company, has managed a 139% return in the last 10 years.
2. Aarti Industries
Aarti Industries is one of the top-performing chemical companies in Mumbai. It has 16 manufacturing units spread across the length and breadth of the country. It is one of the leading manufacturer, supplier, and exporter of Benzene based Intermediates. Over the last 10 years, the companies shares have given 1,874 percent returns to its shareholders.
3. Deepak Nitrite
Deepak Nitrite is a leader in the Bulk Chemicals and Commodities (BCC), Fine and Speciality Chemicals (FSC), and Fluorescent Whitening Agent (FWA) segment. It is a leading manufacturer of Sodium Nitrite, Ethyl Hexyl Nitrate and Optical Brightening Agent (OBA). The company’s share value has increased by 1,268 percent over the last 5 years.
4. India Glycols
India Glycols is one of the leading manufacturers of performance chemicals, glycol ethers, glycols, ethoxylates and PEGs, acetates, natural gums, and potable alcohol. It is the first and the only company in the world to have commercialized the production of ethylene oxide and its derivatives from renewable agricultural sources. It is currently trading at Rs 215.05 per share and has reported a Gross Sales of Rs. 51174.03 Cr and Total Income of Rs.33853.96 Cr in the last quarter.
5. Atul Limited
One of Independent India’s first private sector industries, Atul Ltd. Serves diverse chemical segments such as agrochemicals, aromatics, cresol & its derivatives, pharmaceutical intermediates, bulk drugs, and bulk chemicals. It also has subsidiaries in the US, the UK, China, Brazil, and the UAE. Atul Ltd. It is a good long term investment option. A 5-year investment is expected to offer over 80% return.
These were some of the top-performing chemical companies in 2019. The chemical industry in India is in the midst of a purple patch. Experts predict that the Indian chemical sector will continue to perform well in the next decade as well. However, the sector must also account for future challenges while making the most of the favorable business environment. It must look at ways to integrate technology as well as create business policies keeping sustainability and climate change in mind.
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