Specialty chemicals have been in focus for a while now on the back of increasing demand for their products and services. These companies have witnessed major improvement in the last one year in terms of earnings.
This has led to a spectacular rise in their stock prices on the back of future growth potential and robust earnings. Some firms have even tripled their stock price in just 1 year.
“Indian specialty chemicals companies are poised to ride tailwinds from macro drivers including ‘China+1’, import-substitution, growing costs within China (capital, operational, compliances) and currency benefits,” Kotak Institutional Equities said in a recent report. It also initiated coverage on the specialty chemicals sector on the visibility of sector opportunities across the next decade.
“We expect India’s chemicals sector to get bigger and gain market share in global chemicals over the next decade. Global chemicals is a large market currently dominated by China and expected to grow at a CAGR of 5-6 percent,” the report added.
Specialty chemicals stocks not only have a very high future growth potential but have also performed very well in the past. Let’s take a look at 5 specialty chemical stocks that have rallied over 200 percent in the last 1 year.
Balaji Amines – 450 percent
This specialty chemicals stock rallied 450 percent in the last 1 year from ₹816 in October 2020 to ₹4,488 currently. It has a market cap of ₹14,525 crore and a 52-week range of ₹800 and ₹5,223. Established in 1988, Balaji Amines is one of the leading manufacturers of aliphatic amines in India. It manufactures methylamines, ethylamines, derivatives of specialty chemicals and pharma excipients. In Q1 FY22, the company reported a 208.39 percent surge (YoY) in its net profit at ₹97.39 crore and a jump of 101.59 percent (YoY) in its total revenue from operations to ₹451.94 crore.
Gujarat Fluorochemicals – 348 percent
This specialty chemicals stock surged 348 percent in the last 1 year from ₹484 in October 2020 to ₹2,167 currently. The stock has a market cap of ₹23,805 crore and a 52-week range of ₹442 and ₹2,205. Incorporated in 1987 and headquartered in Noida, the firm has over 3 decades of expertise in Fluorine Chemistry. It was formerly known as Inox Fluorochemicals Limited and changed its name to Gujarat Fluorochemicals Limited in July 2019.
It manufactures and trades refrigerant gases, caustic soda, chloromethane, polytetrafluoroethylene (PTFE), fluoropolymers, fluoro monomers, specialty fluoro intermediates, and other specialty chemicals. In the June 2021 quarter, the firm’s revenues increased 63 percent to ₹912 crore and net income rose from ₹69.8 crore (in Q1FY21) to ₹154 crore (Q1FY22).
Deepak Nitrite – 298 percent
This specialty chemicals stock surged 298 percent in the last 1 year from ₹716 in October 2020 to ₹2,851 currently. The stock has a market cap of ₹38,880 crore and a 52-week range of ₹702 and ₹2,989.95. Deepak Nitrite Limited is a chemical manufacturing company. The Company’s segments include Bulk Chemicals and Commodities (BCC), Fine and Speciality Chemicals (FSC), and Fluorescent Whitening Agent (FWA). It caters to several industries, such as colorants, petrochemicals, agrochemicals, rubber, pharmaceuticals, paper, textile and detergents. In the June quarter, the firm’s revenues increased over 100 percent from ₹674 crore (in Q1FY21) to ₹1526 crore in Q1 FY22. Net income also jumped from ₹98.9 crore to ₹303 crore.
Privi Speciality Chemicals – 258 percent
This specialty chemicals stock surged 258 percent in the last 1 year from ₹527 in October 2020 to ₹1,891 currently. The stock has a market cap of ₹7,374 crore and a 52-week range of ₹501 and ₹2,070. Formerly called Fairchem Speciality Limited, the company is one of India’s leading bulk manufacturers, supplier and exporter of aroma chemicals. It manufactures products, such as linoleic acid, dimer acid and monomer acid, natural mixed tocopherol concentrate and concentrated sterols. For the three months ended 30 June 2021, its revenues increased 15 percent (YoY) to ₹332 crore and net income rose 38 percent to ₹29.2 crore.
Alkyl Amines – 223 percent
This specialty chemicals stock surged 223 percent in the last 1 year from ₹1,228 in October 2020 to ₹3,970 currently. The stock has a market cap of ₹20,280 crore and a 52-week range of ₹1,138 and ₹4,749. Started in 1979, this company manufactures amines, amine derivatives, specialty chemicals. It caters to industries like pharmaceutical, agrochemical, rubber chemicals, paints and dye, and water treatment industries, among others. For the three months ended 30 June 2021, the firm’s revenues increased 60 percent to ₹392 crore reflecting an increase in demand for the company’s products. Its net income rose 49 percent (YoY) to ₹78.5 crore in Q1 FY22
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