Top Chemical Penny Stocks in India: In the modern era, chemicals serve as the catalysts for progress, quietly shaping the landscape of technology, healthcare, and agriculture. With India being in the phase of continuous expansion, there is a good amount of scope for the chemical industries in the future.
This opens up an exciting opportunity for investment in the chemical sector. Today, we shall talk about the top chemical penny stocks in India
Top Chemical Penny Stocks in India
Beardsell Ltd
| Particulars | Figures | Particulars | Figures |
|---|---|---|---|
| CMP | ₹ 51.9 | Market Cap | ₹ 175.93 Cr |
| EPS | ₹ 2.63 | Stock P/E | 20.9 |
| RoE | 16.7% | RoCE | 18.23% |
| Promoter Holding | 56.1 % | Current ratio | 1.44 |
| Debt to Equity | 0.46 | Price to Book Value | 3.06 |
| Net Profit Margin | 3.80 % | Operating Margin | 8.45 % |
Beardsell Ltd was incorporated in 1936 and is engaged in Expanded Polystyrene products, popularly known as thermocole and Prefabricated Buildings.
The company manufactures Quik Build which is an eco-friendly construction system with fast build times, thermal insulation, and cost savings.
It also provides customised pre-fabricated structures for quick deployment, turnkey clean room solutions, and specialized offerings for the defence sector. The company also offers packaging solutions like EPS, anti-static, and composite packaging.
The Company has its manufacturing facilities in various locations across India, including Thane, Chennai, Hyderabad, Karad, Malur, and Hapur. Furthermore, the Company has a widespread presence in India and trading operations in domestic and international markets.
During FY23, the company earned an operating revenue of Rs. 232.01 crores which is an increase of 24% compared to the operating revenue of Rs.186.13 crores in FY22.
Similarly, the company’s net profit has increased significantly in FY23 compared to its preceding financial year. During FY23, the company reported a net profit of Rs.8.49 crores which is an increase of 202% from Rs 2.81 Crore in FY22.
The ROE and RoCE of the company during FY23 stood at 15.2% and 18.5% which indicates that the company has given good returns to shareholders and has efficiently utilised its overall resources.
Archit Organosys
| Particulars | Figures | Particulars | Figures |
|---|---|---|---|
| CMP | ₹ 53.43 | Market Cap | ₹ 119.16 |
| EPS | ₹ 3.05 | Stock P/E | 21.8 |
| RoE | 8.1% | RoCE | 9.73% |
| Promoter Holding | 62.4 % | Current ratio | 1.26 |
| Debt to Equity | 0.53 | Price to Book Value | 1.81 |
| Net Profit Margin | 7.83 % | Operating Margin | 9.54% |
Formerly known as Shri Chlochem, Archit Organosys Ltd started its operations in 1989 with a few chemical molecules.
Today, the company manufactures and trades organic chemicals, adhesives, pigments, sealants and specialty derivatives such as monochloroacetic acid, and sodium chloroacetate.
These products are used in the synthesis of various agricultural chemicals, oil drilling chemicals, cosmetic surfactants, and plastic additives, among others. The company has two manufacturing plants located in Ahmedabad and Bhavnagar.
Major customers of the company include several large Indian and international companies engaged in the agrochemical, pharmaceuticals, and cosmetics manufacturing sectors.
Furthermore, the company is sells its products across Pan India as well as the USA, Europe, Latin America, Other Asian Countries and South Africa.
The operating revenues earned by the company during FY23 have slightly reduced `by Rs.129.70 crores as against Rs.139.82 crores FY22, showing a reduction of 7.23%.
However, the company has increased its net profits during the same duration from 8.23 crores in FY22 to Rs.11.42 crores in FY23 which is an increase of 38.82%. This was a result of the reduction in operating expenses.
The ROE and RoCE during the recent financial year were reported at 17.6% and 17.3% respectively, indicating a good use of the company resources.
Hindcon Chemical
| Particulars | Figures | Particulars | Figures |
|---|---|---|---|
| CMP | ₹ 49.8 | Market Cap | ₹ 271.82 Cr |
| EPS | ₹ 1.12 | Stock P/E | 46.4 |
| RoE | 13.23% | RoCE | 18.05% |
| Promoter Holding | 68.5 % | Current ratio | 4.19 |
| Debt to Equity | 0.02 | Price to Book Value | 5.75 |
| Net Profit Margin | 5.09% | Operating Margin | 10.00% |
Incorporated in 1998, Hindcon Chemicals is engaged in the manufacture & construction-related products like concrete and mortar admixtures, floorings, protective waterproofing coatings and adhesives.
Furthermore, it provides services that include waterproofing, turnkey projects, repair services and retrofits for damaged structures.
The company operates through its facility located in Jalan Industrial Complex, which is on the outskirts of Kolkata. As of FY23, the company has an annual capacity of f 18,000 MT for sodium silicate and 12,000 MT for cement additives.
The company serves customers from business-to-business (B2B) and business-to-consumer (B2C) segment. During FY23, the company’s B2B customers accounted for 71% of the company’s revenues.
During FY23, the company’s revenue from operations increased to Rs.85.59 crores against Rs. 66.61 crores in the previous financial year. Similarly, the net profits increased to Rs.4.35 crores as compared to Rs.4.26 crores during the same duration.
The ROE and RoCE were reported at 10.6% and 14.3% respectively which is below the average return for the shareholders of the company. On a positive note, the company reported a debt-equity ratio of 0.02 which in indicates that the company majorly operates its own funds.
Sunil Healthcare
| Particulars | Figures | Particulars | Figures |
|---|---|---|---|
| CMP | ₹ 73.3 | Market Cap | ₹ 65.83 Cr |
| EPS | NA | Stock P/E | NA |
| RoE | 2.53% | RoCE | 3.03% |
| Promoter Holding | 73.5 % | Current ratio | 1.33 |
| Debt to Equity | 0.82 | Price to Book Value | 1.26 |
| Net Profit Margin | 8.68 % | Operating Margin | 6.18 % |
Incorporated in 1976, Sunil Healthcare Ltd is engaged in the manufacture of Empty Hard Gelatin, HPMC Capsule Shells and Ayurvedic Medicines.
Currently, the company manufactures double lock, triple lock, multiple groove ₹ 75.6 Cr.capsules of EHGC & some proportion of vegan HPMC (Hydroxy Propyl Methyl Cellulose) along with liner, circular, two colour printing and 360degree printing.
The company operates through its facility situated at Alwar with an installed capacity of 15 billion capsules per annum in 9 sizes – 00, 0SEL, 0EL, 0, 1, 2, 3, 4 & 5. Furthermore, the company also has a global presence with subsidiaries in USA and Mexico.
Some of the customers of the company include Abbott, Cadila, Himalaya, Sun Pharma, Ajanta Pharma, Dabur, Intas, Alkem, GSK, and Mankind.
During FY23, the company’s revenue from operations slightly decreased to Rs.110.49 crores against Rs.119.16 crores of the previous financial year. On the other hand, the net profits increased to Rs.6.68 crores as compared to Rs.6.42 crores during last year.
The ROE and RoCE were reported at 11.9%% and 14.7% respectively which suggests room for the improvement in efficiency of company resources.
Crop Life Science
| Particulars | Figures | Particulars | Figures |
|---|---|---|---|
| CMP | ₹ 46.8 | Market Cap | ₹ 80.2 Cr |
| EPS | ₹ 3.39 | Stock P/E | 19.7 |
| RoE | 10.6 % | RoCE | 14.2 % |
| Promoter Holding | 70.0 % | Current ratio | 1.56 |
| Debt to Equity | 0.33 | Price to Book Value | 1.17 |
| Net Profit Margin | 3.13 % | Operating Margin | 9.06 % |
Crop Life Science was incorporated in 2006 as a small-scale unit for producing crop protection chemicals.
Over the years, through its acquisitions, and backwards and forward integration, the company has become one of the leading manufacturers of a wide range of products. These products include insecticides, fungicides, herbicides, micro fertilizers, new-generation organic biostimulants & bio-fertilizers, plant growth regulators and soil plant health products.
The company has a manufacturing unit situated in Ankleshwar, Gujarat through which it supplies its products in Gujarat, Madhya Pradesh, Maharashtra, Chhattisgarh, Uttar Pradesh, West Bengal and Bihar.
Furthermore, the company exports its high-value, branded Products in Egypt, Saudi Arabia, Iran, Oman, Nepal, Bangladesh, Thailand, Malaysia, Indonesia, and Vietnam.
During FY23, the company increased its revenue from Rs.102 crores to Rs.131.22 crores from the previous year registering an increase of 28%. During the same duration, the company has increased its net profits from Rs.2.81 crores in FY22 to Rs.4.07 crores in FY23.
Although the company increased its revenues and profits, the ROE and RoCE stood at 10.6% and 14.2% suggesting a below-average efficiency in its resource utilization.
Conclusion
As we conclude our article on ‘Top Chemical Penny Stocks in India’, we note that though the companies have improved their performance in recent years, it has not been on a consistent basis. Furthermore, penny stocks are extremely volatile with low liquidity which can affect your portfolio.
