Best Petrochemical Stocks to Buy in India – List of Top 10 Petrochemical Industry Shares of 2024Last Updated Date: Jan 02, 2024
The petrochemical industry plays a crucial role in the Indian economy and in an ordinary person’s life. If one is an avid investor, then one must look for the best petrochemical stocks to buy.
It is because the niche is likely to grow well steadily in the years to come. The blog is all about the Petrochemical Companies in India that deal with petrochemicals.
Investors can scroll down and get a brief business overview. The ratios and calculations help investors to make better trading decisions.
Know about Petrochemical Sector in India
The Indian petrochemical industry plays a vital role in boosting the country’s economic condition. Ideally, the top Petrochemical Companies in India rule the petrochemical industry.
This is because manufacturers buy petrochemicals to produce different products.
In India, the petrochemical industry is one of the quickest growing industries, and our country has some of the biggest petroleum refineries.
Globally, India’s demand for petrochemical products like wood and cotton has an ever-increasing need. Experts assume a massive growth for petrochemical products thanks to the increase in domestic markets.
Some experts also say that India holds great potential, which takes the world by storm as the petrochemical industry claims to give us a promising future, so investors must look at petrochemical sector stocks to buy.
Top 10 Petrochemical Companies in India – Best Petrochemical Shares in India
Check out the Petrochemical Share Price & Ranking of Best Petrochemical Shares to buy Today or Tomorrow or for Long Term –
Investors must not buy any stock before understanding its parameters. For instance, when traders choose to invest in the petrochemical industry, they can check the top 10 companies in the table here.
As investors can see, rain industries, TN Petroproducts, and Vikas Lifecare rank top 3. There is a reason behind it. The main reason here is their MCAP which ranges from 80739.78 to 6281.09 crores.
If traders are looking for the Best Petrochemical Shares in India, they must choose a higher MCAP. On the flip side, Kothari petroleum, south Asian petro, and multi-base India rank lower.
It is because the MCAP is less while the six month% change is also minimum. Hence parameters are vital while looking for Petrochemical Shares to Buy.
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Rain Industries – Best Petrochemical Stocks in India
Rain Industries is not just an innovator but also leads the global petrochemical industry. The leading producer holds its headquarters in South India.
Additionally, the company has a fantastic workforce of around 2400 employees. The team forms the firm foundation of the company’s consistent growth. Rain Carbon Inc. (RCI) and Rain Cements Limited (RCL) are the two subsidiary companies of the company.
Products or Services – The company mainly produces raw materials for primary aluminum production. In addition, it includes coal tar pitch, graphite, carbon black, calcined petroleum coke (CPC), refractory, and others.
Per year the company produces at least 2.1 million tons of CPC. In 2013, Rain industries acquired a leading European manufacturer RUTGERS.
Why to invest in Rain Industries Stocks?
One can indeed say that the rain industry is one of the Best Petrochemical Stocks in India. It is because the share price is skyrocketing now, and the main reason is its global demand for one of its products, CPC.
The company’s volume has increased from 215 crores to Rs. 338 crore in the past year that indeed shows an optimistic sentiment among the myriad investors.
The experts also expect the quarterly numbers to grow as the company’s cement and the chemical segment is most likely to expand with the unlocking mode on the cards.
So, if one is looking for petrochemical shares to buy, they can surely not ignore Rain industries. Besides having a promising MCAP, it offers a tremendous six-month and one-month change.
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TN Petroproducts – Best Petrochemical Shares to Buy
TN Petroproducts is no less than a corporate star. It was established back in 1984 with an aim to sell at least 50000 MTA Linear Alkyl Benzene (LAB) projects. Tamilnadu Petroproducts Limited has won hallmarks since then.
The promoter’s vision is to propel the growth of environmentally and biodegradable products. Additionally, a favorable economic environment in the country helped the company flourish for years to come.
Even today, TPL continues to move ahead with a fantastic tracking record. It makes TPL one of the best petrochemical shares to buy.
It has joint ventures with the following:
- Henkel SPIC India Limited (HSIL)
- Petro Araldite Private Limited (PAPL)
- SPIC Electric Power Corporation (Private) Limited (SEPC)
- Vopak Sical Terminal Limited
Products or services – Some of the leading products of the TNL are:
- Linear Alkyl Benzene– Grades: SL–352 and SL–402
- Heavy Alkylate
- Caustic Soda / Chlorine / Hydrochloric Acid / Ammonium Chloride / Sodium Hypochlorite
Why to invest in TN Products Stocks?
Usually, companies with constant growth earnings per share are likely to make one of the best dividend stocks.
This is because the main aim of any investor is to earn a maximum dividend, so when yields are low, the rewards are low, so the shares are bought heavily.
Hence investors can see in the table that TNL earnings are significantly increased by 35% annually. The company also invests sensibly reinvests all of the profits as earnings per share are increased rapidly.
Investors can choose to invest in this stock not only because the dividends are more, but also it reinvests in the business. TNL is one of India’s most promising Petrochemical Stocks, without a doubt.
Vikas Lifecare – Petrochemical Sector Stocks
Vikas lifecare was incorporated back in 1995. The company is based in New Delhi. Formerly, the company was known as Vikas Multicorp Limited.
Products and services – The company mainly trades in different chemical compounds, plastic granules, and other products.
It also sells polymer compounds like PVC, V blend SOE, and polypropylene compounds. Furthermore, the company also exports its products. Several reasons make the company rank under Top Petrochemical Sector Stocks.
Why should you invest in Vikas Lifecare stocks?
There are several reasons to invest in Vikas Lifecare. First, if investors are looking forward to a multi-bagger stock, they need to consider trends like a growing return on capital employed.
In the past five years, the company has invested at 200% capital, and the returns are stable on this capital, around 3.5%.
The investors aren’t optimistic about the company’s trend evolving at a significant level. Lastly, the warning signs are earnings have declined by at least 34.5% for the past few years.
Oricon Enterprises – Top Petrochemical Companies in India
Oricon Enterprises was incorporated back in 1968, and in 1970 it was converted to a public limited company. The company forms a part of the Parijat group.
It is presently situated in Raigad, Maharashtra. The manufacturing group has at least 10,000 MTPA pentanes besides other petrochemical products.
Products and services – Oricon enterprises mainly deal with marine logistics, real estate, packaging, and petrochemical products. The company’s main products are coal, petcoke, steel plates, salt, sugar, polypropylene polymer cent, etc.
Furthermore, the leading petrochemicals available here are mixed pentane and heptane, especially for industrial applications.
Besides all of this, the company also offers warehousing services and works as a clearing agent. It is one of the Top Petrochemical Companies in India.
Why should you invest in Oricon Enterprises stocks?
Investors might be thinking about investing in Oricon enterprises or not. It is a great idea to invest in Oricon enterprises as the earnings per share are constantly growing.
At the same time, the investors need to notice that there is a low payout for earnings and cash flow statement. The overall payout ratio shows that dividends stand at a conservative approach.
Besides rewards, the investors also need to check for the risks involved. The risks here include an unstable record of dividend, volatile Petrochemical Share Price, and large one-off items that impact the financial results.
Lastly, the stock doesn’t have a meaningful cap. Well, the combination is worth the research.
Kothari Petrochem – Top Petrochemical Stocks in India
Kothari petrochem was incorporated back in 1989. It is a part of the renowned HC Kothari group and is one of the biggest producers of the best quality mid-range Polyisobutylene (PIB).
In addition, it offers lubricant additives to manufacturers. When it comes to the company’s market cap, it is around 440.00 crores. Besides being a solid pedigree, the group is a zero debt company, making Kothari Group rank in Top Petrochemical Stocks in India.
Products and services – The trade name of the Kothari group’s polybutene are KVIS. The linear polymer is available in different weights and has excellent oxidative and thermal degradation resistance.
Additionally, the company’s products are not only odorless but also have low-temperature flexibility.
Some of the achievements include:
- Quality Management System (ISO 9001:2000)
- Environmental Management System (ISO 14001: 2004)
Why should you invest in Kothari Petrochem stocks?
One must first consider the ROCE or return on capital employed to identify a stock as an investor.
While in the table, the investors can see that the company’s current ratio is minimum which means it doesn’t rely much on its suppliers or creditors to finance the business.
The bottom line here is that Kothari Petrochem proves that it can easily reinvest in the industry and generate huge returns on capital employed.
The remarkable recovery in the past few years can tell investors to expect more from this stock. As the momentum of the stock remains strong considering the Petrochemical Share Price, it is worth it to take a closer look.
When investors take a closer look, they can feel the various impacts that share market conditions are likely to have on the stock.
South Asian Petrochem – Top 10 Petrochemical Stocks
SAPL is known as the South Asian Petrochem limited, and it is the latest venture of the Dhunseri group. The Chanukah of Kolkata promotes the company.
It is all about dynamic wisdom and strategic growth, as natural growth depends on professional management. The company is based in Vadodara, India. The company’s philosophy helps it rank as one of the Top 10 Petrochemical Stocks.
Products and services – The company manufactures and sells some chemicals that are based on ethylene oxide. Its products mainly include diethanolamine, triethanolamine, monoethanolamine, stearic acid ethoxylated, and lauryl alcohol ethoxylates.
Why should you invest in South Asian Petrochem stocks?
If investors are new to trading, they mainly look forward to investing in stocks that feature a great story. It goes the same way even if the company is making losses.
Well, this doesn’t work for a long time as investors take their shares if the company is constantly under the losses. The only reason investors are still trading in South Asian Petro is that it has it’s earning per sharing share growing at a tremendous rate.
Over the past few years, the earnings grew by at least 185.4%. Even though the company looks promising to invest in, investors need to consider some investment risks.
The risk here is that there is a considerable level of non-cash earnings. Before investing here, the investor needs to check the Petrochemical Share Price.
Multibase India – Best Petrochemical Stocks to Buy
The India-based company Multibase India was incorporated back in 1991and is based in Mumbai. It is a part of the Multibase SA group.
Formerly, the company was known as Synergy Multibase Limited. In April 2002, Dow Corning acquired Multibase SA and merged it with the Thermoplastic Division of Dow Corning.
Being a merged company, multi-base will continue with this name. In Europe, USA and India, Multibase is one of the leading compounders. Thanks to its 300 million pounds capacity, the company serves the automotive niche.
The company aims to develop products through their excellent R&D capabilities, and raw materials that go hand in hand with processability and performance as the company strives to be nothing but the best, so it is one of the Best Petrochemical Stocks to buy.
Products and services – The annual compounding capacity of the company is around 300,000,000 lbs, and it has three plants. Besides manufacturing thermoplastic elastomers, the company also trades in silicone-based products.
It produces silicon master batches, polypropylene compounds, and thermoplastic master batches. The company also serves the construction and building niches, not just the automotive sector.
Some of the company’s products are:
- Siloxane Masterbatches
Why should you invest in Multibase India stocks?
Without a doubt, investors can invest in Multibase India as it is one of the best Petrochemical Shares in India. It is the best stock for investment in because the company’s earnings grew by at least 70% in the previous year.
However, besides the earnings, there are some risks also like unstable dividend records and volatile share price for around three months. Lastly, the market cap is also not that meaningful.
SVC Industries – Top Petrochemical Stocks to Buy
The listed public company was incorporated back in 1989. SVC industries are based in Mumbai. Formerly, SVC industries were known as ATV petrochem.
Earlier, the company was dealing in steel but focusing on the PTA project, and the company discontinued the trading activities in 1994. Investors can consider SVC industries as a Top Petrochemical Stocks to buy.
Products and services – The company has a plant to store 1,20,000 tons per annum of Purified Terephthalic Acid (PTA).
It manufactures Purified Terephthalic Acid which is one of the main raw materials for manufacturing polyester staple fiber.
Why should you invest in SVC Industries stocks?
The key valuation by experts suggests that it is in an overvalued zone. If one is considering investing in Petrochemical Companies in India they need to check the quality and valuation.
Hind Fluorocarbons – Best Petrochemical Companies in India
HFL or Hind Fluorocarbons was established back in 1983, and it is a subsidiary of Hindustan Organic Chemicals (HOCL). HOCL is a government of India enterprise working under the ministry of chemicals and fertilizers.
The company’s plant manufactures Polytetrafluoroethylene (PTFE), having an annual capacity of 500 tonnes. It is based in Andhra Pradesh.
The company’s strength is all about its knowledge acquired in the past two decades. It also has a team of experts and engineers trained in France.
The company’s driving force is its continuous interactions with clients and R&D processes to make better products.
The single-minded purpose and highly motivated workforce make HFL one of the Best Petrochemical Companies in India.
The company’s main products include Fine Powders, HIFLON Dispersions, HIFLON MM2 Granular Powders, Compounded PTFE, and HIFLON Coatings.
The company’s products are mainly applied in the electrical and electronic industries. However, it also has strategic applications in the defense and aerospace niche. Several industries even today rely on HFL for their raw materials.
Why should you invest in Hind Fluorocarbons stocks?
If an investor is looking for Petrochemical Stocks to buy, they need to understand a company’s financial information carefully. They can easily do so by understanding its profit and loss statement.
If investors look forward to investing in HFL, they need to consider both the profit and loss account and ratios. The company’s PE ratio stands at -3.29, making it undervalued.
Furthermore, it has a D/E ratio of -1.18, which means HFL has a low debt proportion to its capital. Experts suggest not to invest in this stock as the dividend yield is zero, and at the same time, the sales growth is not promising.
Jiya Eco-Products – Top 10 Petrochemical Shares
Back in 2011, Jiya Eco-products was incorporated as a private limited company. In 2014 it was converted to a public limited company. The company has its manufacturing plants at Navagam, Bhavnagar.
It started with bio-briquettes, but the company expanded its production by installing new machines in just two years. It holds a capacity to produce 310000 tonnes of bioproducts.
The company’s location gives it an added benefit over other competitors in the market. Jiya Eco-product, without a doubt, is one of the Top 10 Petrochemical Shares to buy as it holds a technological drive and strives hard to do continuous equity research.
Products and services – The company’s products mainly include bio-fuels viz. bio-briquettes. Besides that, they also manufacture bio-pellet, which is an excellent alternative to typical fossil fuels, including coal and lignite.
Why should you invest in Jiya Eco-products stocks?
Investors need to check the company’s actual net worth before investing in any stock.
When it comes to Jiya Eco-products, the store looks quite attractive as it features an excellent inventory turnover ratio which clearly shows that the company’s management is efficient.
At the same time, the company’s sales growth stands at 87.14%, which reasonably relates to its performance and development. Moreover, its dividend yield for the previous year stands at Rs. 0.20.
Even though investors might consider Jiya Eco-products as one of the top Petrochemical Shares to buy, they need to consider some risks here. The hazards mainly include highly illiquid shares and low revenue.
Assam Petrochemicals – Petrochemical Sector Stocks
It is a semi-governmental Indian company. The company holds a significant stake in Oil India Limited and Assam Industrial Development Corporation (AIDC).
It was incorporated in 1971. The company’s plant is based in Namrup. Assam Petrochemicals was set to make the most of the vast reserve of Natural Gas in the Upper Assam oil fields.
It also aims to align with the demands of formalin and methanol. So if one is looking forward to Petrochemical Sector Stocks to buy, they can count on Assam petrochem.
Products and services – The company mainly offers urea, carbon dioxide, and urea.
Why should you invest in Assam Petrochemicals stocks?
The main reason to invest in this stock is that the company plays a crucial role in Assam’s economic development. The keyword here is growth, so investors can consider supporting it.
Southern Online Bio – Petrochemical Companies Stocks to Buy
It is an eco-friendly company. Formerly the company was one of the first private internet service providers. The company is a leading company when it comes to eco-friendly fuel solutions including state-of-the-art biotechnology to craft biodiesel.
The investors must consider the products and services before knowing more about Petrochemical Companies Stocks to buy.
How to find Petrochemical Stocks for Trading?
If an investor aims for online trading in Petrochemical Stocks, then they need to follow these steps:
Keep track of stock prices – The price barrel is one of the most significant elements that dominate the petrochemical industry. Therefore, it is generally good to buy the petrochemical stock when prices are low.
Learn about the different companies – Not all petrochemical stocks are equal, so it is good to invest in a stock after learning about other conditions.
Consider the dividend – Before investing in any company, one needs to check their previous dividend and decide if the company looks promising or not.
Lastly, anytime it is good to buy a stock, all investors need to be careful about the market’s volatility.
How to Invest in Petrochemical Sectors Stocks?
If an investor aims to Invest in Petrochemical Stocks, they need to learn how to invest in the market.
- Firstly, the investor needs to understand their investing approach. The approach can be anything from individual stocks to index funds.
- Once they understand what they want to invest in, they need to check how much funds they would like to invest.
- The investors need to open an investment account with a stockbroker. The traders must know that they cannot trade if they don’t have a Demat account.
- Lastly, investors can choose their stocks and start trading in no time.
Top Petrochemical companies in India – Conclusion
Here are the Top Petrochemical companies in India. Investors can check all the stocks and invest in them after weighing the risk factors.
Besides the dividends, they also need to consider the ratios which affect a stock to a great extent. So investing is easy once the traders know what to look for when buying a stock.
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