Best midcap chemical stocks in India to add to your watchlist.

Best Mid Cap Chemical Stocks: Mid-cap stocks have tremendous potential to become the next large-cap or blue-chip stock. These companies are in a growth phase and have the potential to create value. Additionally, the chemical industry is currently facing headwinds and companies are focusing on research and development activities. So, in this article, we will take a look at some of the best mid-cap chemical stocks in India.

Best Mid Cap Chemical Stocks in India

Best Mid Cap Chemicals Stock #1: Gujarat Fluorochemicals Ltd

The company began commercial operations in 1989 with the construction of India’s largest refrigerant manufacturing plant in Ranjitnagar, Gujarat, India. They have upgraded their factories to produce specialty fluoride items to meet the growing demand from the global agricultural and pharmaceutical industries.

Gujarat Fluorochemicals Ltd expanded into new markets in 2007 from one of the world’s most integrated facilities in Dahej, Gujarat, India and now has a comprehensive range of fluoropolymers including PTFE, PFA, FEP, FKM, PVDF and fluoropolymer additives. I’m doing it.

It has three manufacturing sites located in Ranjoit Nagar, Dahej and Jova in Gujarat, India, a captive fluorspar mine in Morocco, offices and warehouses in Europe and the United States, and a global marketing network.

In FY23, the companies are India (40.11%), Europe (21.08%), US (26.36%) and Rest of the World (12.44%).

The company reported a 43.78% increase in revenue in FY23 to Rs. 5,684.66 crore, net profit increased by 70.52% to Rs. 1,323.04 crore. RoCE surpasses RoE. RoE was 27.07% and RoCE was 29.71%.

Best Mid Cap Chemicals Stock #2: Deepak Nitrite Ltd

Deepak Nitrite Ltd was established in 1970. With a customer base of more than 1,000 and products ranging from 30 to 56 applications, the company specializes in products such as basic chemicals, fine and specialty chemicals, high-performance products and phenolic products. Its customers include Bayer, Unilever, Indian Oil, Rallis India, BASF, Loreal, Lubrizol, Reliance Industries and Nirma.

The company has a presence in more than 45 countries on six continents. Advanced Intermediaries’ revenue segmentation was 38.05%, with Phenolics accounting for 61.94%. In FY23, India accounted for 80.40% of the income, with the remaining 19.60% coming from outside India.

The company’s revenue grew 17.19% in FY23 to Rs. 7,972.06 crore. Net profit was 5 million won. It was 85.2 billion won, a 20.60% decrease compared to the same period last year. RoCE surpasses RoE, and the ratio reached 30.13% due to decreased profits.

Best Mid Cap Chemicals Stock #3: Tata Chemicals Ltd

The company was founded in 1939. The company is divided into two segments: Basic Chemicals and Specialty Products. The company’s basic chemical product line supplies critical ingredients to the world’s leading brands in glass, detergents, pharmaceuticals, biscuit making, bakery and other industries.

Tata Chemicals is not only one of Asia’s largest salt mills, but also the world’s third-largest soda ash manufacturer and sixth-largest sodium bicarbonate manufacturer.

Tata Chemicals has developed Fossence, a nutritious prebiotic product sold to B2B customers in India, North America, Europe, the Middle East and Asia. Through its subsidiary Rallis India Ltd., the company holds a prominent position in the crop protection market.

Highly Dispersible Silica, a patented eco-friendly manufacturing technology, focuses on adding value to various fields such as high-performance tires, oral care, paints, and additives.

The company is in the early stages of developing its energy science platform to deliver cutting-edge solutions based on lithium-ion battery technology.

Basic chemicals account for 80.82% of income, with products such as soda ash accounting for 57.45%, salt 12.28%, bicarbohydrates 4.73%, and other 6.34%. In FY23, the specialty revenue segment accounted for 19.04% of total revenue, followed by crop protection at 14.38%, seeds at 2.02%, other at 2.63% and unallocated revenue at 0.13%.

Across regions, 42.98% of the company’s revenue is earned in India, 5.37% in Asia, 15.52% in Europe, 2.94% in Africa, 32.96% in the United States and 0.22% globally.

The company recorded a revenue of Rs. It is $1678.9 billion, a 33% increase over the previous year. The net profit was Rs. It is $243.4 billion, a 73.28% increase over the previous year. RoE and RoCE were 12.91% and 12.37%, respectively. RoE surpasses RoCE, which is better for shareholders.

Best Mid Cap Chemicals Stock #4: Godrej Industries Ltd

The company was founded in 1988. Godrej Industries Ltd. is a Godrej group company that manufactures and sells consumer goods and other related products. The company’s products include oleochemicals and surfactants, animal feed, poultry, agricultural products, as well as personal and household products.

We sell our products under the Godrej brand name. He was also involved in real estate development, real estate investment, and palm oil plantation businesses. Godrej Industries is headquartered in Maharashtra and has factories in Ambernath, Wadala, Valia and Dombivali. The company’s operations are spread across India, Indonesia and Singapore. Godrej Industries is headquartered in Mumbai, Maharashtra, India.

Our chemicals business has a strong global presence and exports to more than 70 countries. The company operates two plants in Gujarat and Maharashtra. The company’s products include fatty alcohols, fatty acids, surfactants, glycerin and oleochemical derivatives.

Chemicals are one of the organization’s revenue streams. Revenues for FY23 are broken down as follows: Chemicals – 23.44%; Animal feed – 27.90%; Vegetable oil – 10.85%; Real Estate and Property Development – ​​17.43%; Dairy products – 8.45%; Crop protection – 6.73%; Finance and Investments – 2.20%; and others – 2.97%.

India accounts for 88.11% of the revenue while the remaining 11.88% comes from globally.

The company’s sales in 2023 were 150 million won. 16,740.25 crore, an increase of 18.47%. Net profit increased by 43.08% to 10 billion won. 1,420.64 crore. RoE and RoCE were 18.83% and 10.72%, respectively. RoE surpassed RoCE.

Best Mid Cap Chemicals Stock #5: Aarti Industries Ltd

Aarti Industries Limited is a chemical company established in 1984 specializing in benzene based derivatives. We are present in more than 60 countries. The company’s experience in process chemistry, innovation and engineering to create customized solutions for a wide range of downstream sectors. To provide long-term solutions to stakeholders, the organization prioritizes the use of green chemistry.

As of FY23, domestic sales accounted for 52% of total sales, with exports accounting for the remaining 48%. Exports are also geographically diverse, with the rest of the world accounting for 48% of fiscal 2023 sales at 15%, North America at 13%, Europe at 11%, China at 6% and Japan at 3%.

Sales in fiscal 23 increased 5.98% to KRW 1.3 trillion. 7,282.62 crore. The net profit was Rs. 545.23 crore, a decrease of 54.01%. RoE exceeded RoCE at 11.56% and 10.48%, respectively.

List of Best Mid Cap Chemical Stocks

Let’s take a look at the best mid-cap and small-cap chemicals stocks in the chemicals sector.

conclusion

As the end approaches, the midcap space could produce the multi-bagger stocks of the future. However, only some companies will grow at the rate we expect. Over the years, market dynamics and macroeconomic changes will test every company’s ability to overcome them, and these companies have the potential to evolve from mid-cap to large-cap. What do you think about these businesses? Does it have potential? Please share your thoughts in the comment box below.

Written by Santosh

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