Best Chemical Stocks in India for February 2025 – 5Y CAGR Basis: FACT, Deepak Fertilisers & More

The Indian chemical industry is well diversified, containing several categories such as speciality chemicals, bulk chemicals, petrochemicals, agrochemicals, polymers, and fertilisers. 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 February 2025, based on their 5-yr CAGR and other parameters like market cap and net profit margin.

Best Chemicals Stocks in India in February 2025 – 5yr CAGR Basis

Note: The best chemical stocks list provided here is as of January 31, 2025. The stocks are selected from the Nifty 500 universe, 1-yr returns are set to positive and sorted as per their 5-yr CAGR.

Overview of the 5 Best Chemical Stocks in February 2025

1. Fertilisers And Chemicals Travancore Ltd

Fertilisers And Chemicals Travancore (FACT) is engaged in the manufacturing and selling of fertilisers, its by-products and caprolactam. The company comes under the administrative control of the Department of Fertilizers, Ministry of Chemicals & Fertilizers, Government of India. In H1 FY 2025, the company’s total income was ₹2,14,774 lakh, down from ₹2,99,108 lakh during the same period in the previous year. In H1 FY 2025, the company reported a loss of ₹3,749 lakh, down from a profit of ₹17,705 lakh during the same period in the previous year.

Key Metrics:

• Return on Equity (ROE): 11.03%
• Return on Capital Employed (ROCE): 18.39%

2. Deepak Fertilisers and Petrochemicals Corp Ltd

Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) is amongst the leading producers of fertilisers and industrial chemicals in India. The operating revenue for the 9M FY 2025 was ₹7,607 crore, up by 15% from ₹6,590 crore in 9M FY 2024. In 9M FY 2025, the company reported a net profit of ₹667 crore, up by 181% from ₹238 crore during the same period in the previous year.

Key Metrics:

• ROE: 8.32%
• ROCE: 12.32%

3. Linde India Ltd

Linde India is mainly involved in the manufacturing of industrial and medical gasses and the construction of cryogenic and non-cryogenic air separation plants. In H1 FY 2025, the company’s total income was ₹13,232.03 million, down from ₹14,691.81 million during the same period in the previous year. In H1 FY 2025, the company reported a net profit of ₹2,159.23 million, down from ₹2,048.48 million during the same period in the previous year.

Key Metrics:

• ROE: 13.14%
• ROCE: 15.53%

4. Solar Industries India Ltd

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. In H1 FY 2025, the company’s net revenue was ₹3,401 crore, up by 12% from ₹3,030 crore during the same period in the previous year. 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.

Key Metrics:

• ROE: 27.06%
• ROCE: 31.18%

5. Himadri Speciality Chemical Ltd

Himadri Speciality Chemical is mainly involved in the manufacturing of carbon materials and chemicals. The company’s sales volumes grew by 24%, reaching 4,15,679 MT in 9MFY25. Profit after tax (PAT) saw a 35% year-on-year increase, totalling ₹400 crore in 9MFY25.

Key Metrics:

• ROE: 15.44%
• ROCE: 19.65%

Best Chemicals Stocks in India in February 2025 – Market Cap Basis

Note: The best chemical stocks list provided here is as of January 31, 2025. The stocks are selected from the Nifty 500 universe, 1-yr returns are set to positive and sorted as per their market cap.

Best Chemicals Stocks in India in February 2025 – Net Profit Margin Basis

Note: The best chemical stocks list provided here is as of January 31, 2025. The stocks are selected from the Nifty 500 universe, 1-yr returns are set to positive and sorted as per their net profit margin.

Growth of the Chemical Sector in India

The Indian chemical industry is set to expand at a CAGR of 11-12% by 2027, increasing the country’s share of the global speciality chemicals market from 3% to 4%. In response to the growing industry, the government has implemented initiatives like mandating BIS-like certification for imported chemicals to curb the influx of cheap and substandard chemicals.

India’s chemical industry is highly diversified, containing over 80,000 commercial products. Currently valued at US$ 220 billion, it is projected to grow to US$ 300 billion by 2030 and US$ 1 trillion by 2040.

India has long been a global leader in generics and biosimilars, with major vaccine manufacturers contributing more than 50% to the global vaccine supply.

The demand for chemicals and petrochemicals in India is expected to nearly triple, reaching US$ 1 trillion by 2040.

Conclusion 

Apart from the chemical sector stocks mentioned above, there are several other companies in India’s chemical sector that are adding their value. It’s vital 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.