India’s chemical industry is highly diversified, encompassing categories such as bulk chemicals, speciality chemicals, agrochemicals, petrochemicals, polymers, and fertilizers. As of August 2024, it ranks as the 6th largest chemical producer globally and 3rd in Asia, contributing 7% to the country’s GDP. In this article, check the best chemical stocks in India for January 2025, based on their 5-yr CAGR.
| Name | Market Cap (₹ in crore) | PE Ratio | 5Y CAGR (%) | 1Y Return (%) |
| Fertilisers And Chemicals Travancore Ltd | 64,056.89 | 438.21 | 90.75 | 20.51 |
| Deepak Fertilisers and Petrochemicals Corp Ltd | 15,381.45 | 34.76 | 65.97 | 77.15 |
| Himadri Speciality Chemical Ltd | 28,693.77 | 69.86 | 56.97 | 75.39 |
| Solar Industries India Ltd | 89,261.65 | 106.78 | 55.91 | 44.34 |
| Linde India Ltd | 51,848.54 | 119.44 | 55.76 | 7.28 |
| PCBL Chemical Ltd | 17,308.55 | 35.26 | 49.50 | 79.40 |
| Gujarat Fluorochemicals Ltd | 46,364.94 | 106.60 | 47.43 | 10.70 |
| Deepak Nitrite Ltd | 34,071.66 | 42.02 | 46.14 | 0.98 |
| BASF India Ltd | 24,280.65 | 43.11 | 40.96 | 82.50 |
| Balaji Amines Ltd | 5,842.55 | 28.52 | 34.10 | -33.16 |
Note: The best chemical stocks list provided here is as of January 2, 2025. The stocks are selected from the Nifty 500 universe and sorted as per their 5-yr CAGR.
Fertilisers And Chemicals Travancore Ltd (FACT) is involved in the manufacturing and selling of fertilisers, its by-products and caprolactam. The company is under the administrative control of the Department of Fertilizers, Ministry of Chemicals & Fertilizers, Government of India. For FY 2024, the company reported a total income of ₹5,25,804 lakh, down from ₹6,33,372 lakh in FY 2023. The company’s profit was ₹14,611 lakh in FY 2024, declined from ₹61,283 lakh in FY 2023. In H1 FY 2025, the company reported a loss of ₹3,749 lakh, down from ₹17,705 lakh during the same period in the previous year.
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Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) is one of the leading producers of fertilisers and industrial chemicals in India. For FY 2024, the company reported a total income of ₹2,12,181 lakh, compared to ₹2,48,386 lakh in FY 2023. The company’s profit was ₹31,337 lakh in FY 2024, up from ₹29,134 lakh in FY 2023. In H1 FY 2025, the company reported a net profit of ₹414 crore, up by 134% from ₹177 crore during the same period in the previous year.
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Himadri Speciality Chemical is mainly involved in the manufacturing of carbon materials and chemicals. For FY 2024, the company reported a total income of ₹4,22,740.80 lakh, compared to ₹4,19,981.59 lakh in FY 2023. The company’s profit was ₹41,068.18 lakh in FY 2024, up from ₹21,585.90 lakh in FY 2023. In H1 FY 2025, the company reported a profit of ₹258.48 crore, up by 38.43% from ₹186.72 crore during the same period in the previous year.
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Solar Industries Ltd is one of the main domestic producers of bulk and cartridge explosives, detonators, detonating cords, and components used in the mining, infrastructure, and construction sectors. For FY 2024, the company reported a total income of ₹6,113.99 crore, a slight decline from ₹6,954.05 crore in FY 2023. The company’s profit was ₹875.23 crore in FY 2024, up from ₹811.17 crore in FY 2023. In H1 FY 2025, the company reported a profit of ₹604 crore, up by 47% from ₹411 crore during the same period in the previous year.
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Linde India is mainly involved in the manufacturing of industrial and medical gasses and the construction of cryogenic and non-cryogenic air separation plants. For FY 2024, the company reported a total income of ₹28,456.81 million, compared to ₹32,394.94 million in 15 months ended March 31, 2023. The company’s profit was ₹4,340.86 million in FY 2024, compared to ₹5,380.59 million in 15 months ended March 31, 2023.
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India’s chemical industry, which encompasses over 80,000 commercial products, is highly diversified. Exports of organic and inorganic chemicals reached US$ 14.09 billion during April-September 2024. In the same period, imports of organic chemicals totalled US$ 8.56 billion, and inorganic chemicals amounted to US$ 3.17 billion. Additionally, exports of castor oil, essential oils, cosmetics and toiletries reached US$ 2.12 billion.
Currently valued at US$ 220 billion, India’s chemical sector is expected to grow to US$ 300 billion by 2030 and US$ 1 trillion by 2040. The sector’s demand is projected to expand at a rate of 9% per year by 2025.
The Department of Chemicals & Petrochemicals plans to introduce the Production-Linked Incentive (PLI) scheme for the chemical and petrochemical industries and will revise the guidelines for the Petroleum, Chemicals, and Petrochemicals Investment Region (PCPIR).
India’s chemical industry is projected to grow at a CAGR of 11-12% by 2027, with its share in the global speciality chemicals market expected to rise from 3% to 4%.
In addition to the chemical sector stocks provided above, there are several other companies in India’s chemical sector that are driving growth. It’s essential to conduct thorough research on both the industry and the financial performance of any company before making investment decisions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
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