Multibagger Stocks: 5 Specialty Chemical Stocks That Delivered Upto 468% In 1-Year

Similar to the other sectors that have participated in the record rally on the headline indices, chemicals sector is no exception. In fact, the positive outlook on the sector is still maintained for a number of reasons even after it has provided multibagger returns of over 400 percent.

Reasons for optimism in the specialty chemicals space:

1. Brokerages are of the belief that India's share in the global specialty chemicals space will likely double over the next 5-years.

2. Over the past one year, companies' in the space have logged substantial improvement in earnings and profitability.

3. Companies in the space are seeing increased demand from clientele who were earlier procuring products from China. In fact India's specialty chemicals industry has emerged as the biggest beneficiary of the shift in global supply chain from China

4. On a more recent basis, the power crisis in China is also auguring well for India's chemical manufacturers.

Privi Specialty Chemicals:

Formerly called Fairchem Speciality Limited, the company is one of India's leading bulk manufacturer, supplier and exporter of aroma chemicals. The company's state of the art
manufacturing facilities are based out of Mahad in Maharashtra and at Jhagadia in Gujarat.

The company on a recent basis entered into a JV with Fortune 500, Swiss multinational- Givaudan SA to set up a Greenfield production unit that will be established at Mahad.

The stock is mainly trending higher on account of growing demand from the fragrance industry.

The stock is categorized within the small cap scrips and has a market cap of Rs. 7304 crore. Over the last 1-year the stock has gained by 233 percent. The next earnings for the scrip will be announced on November 10, 2021.

Deepak Nitrite:

The Gujarat-based company manufactures chemical intermediates to cater to the domestic and international markets. As per the company's website, it draws 35 percent of its revenue through exports and has as many as 50 Fortune 500 companies' as its partners.

On a more recent basis, specialty chemical companies' including Deepak Nitrite has been witnessing a surge in stock price as there is expected that the chemical industry stocks will outperform in the short to middle term and reflect in the companies' earnings in the coming quarter. Also, as the company is not dependent on China for the raw materials augurs well for the company in the current situation.

The stock is a mid-cap scrip with a market capitalization of Rs. 39,249 crore.

Balaji Amines:

The company is an ISO 9001: 2015 certified company that specialises in manufacturing Methylamines, Ethylamines, Derivatives of Specialty Chemicals and Pharma Excipients. The company also is into manufacturing of derivatives, which are downstream products for various Pharma /Pesticide industries apart from user specific requirements.

Established in 1988, the company is the leading manufacturer of Aliphatic Amines, catering to the demand of value based Specialty Chemicals.

This is again a small cap scrip with market cap of Rs. 14,645 crore.

Alkyl Amines Chemicals:

Set up in the year 1979, this company manufactures amines, amine derivatives, speciality chemicals that cater to the pharmaceutical, agrochemical, rubber chemicals, paints and dye and water treatment industries, among others.

In late September this year, the scrip saw one on the promoter trimming stake in the entity through open market sale. In the quarter ended June of Fy 22, the company's net profit jumped 49 percent to Rs. 78.5 crore.

The company is also an almost debt free entity with debt to equity at 0.03 in 2021.

Gujarat Fluorochemicals:

Gujarat Fluorochemicals Limited (GFL) is an Indian Chemicals Company with over 3 decades of expertise in Fluorine Chemistry. GFL holds expertise in Fluoropolymers, Fluorospecialities, Refrigerants and Chemicals. The various industries' to which the company caters include automotive, aerospace, semiconductors, electronics, common household appliances, telecommunications, healthcare and architecture.

The company on a recent basis has filed for Lithium Hexafluoro Phosphate (LiPH6) as one of its products. With the rising impetus on EVs, there is expected a surge in demand for LiPH6.

 

5 Multibagger Specialty Chemicals Stocks in the last 1-year

 

Specialty chemical stock	LTP	% gain in the last one year
Privi Speciality Chemicals	Rs. 1867.9	233%
Deepak Nitrite	Rs. 2878	260%
Balaji Amines	Rs. 4519	468%
Alkyl Amines Chemicals	Rs. 4074	220%
Gujarat Fluorochemicals	Rs. 2007.4	314%

Disclaimer:

The list of these chemicals stocks is collated to provide a general outlook on the industry and is not a recommendation to buy in these listed stocks.

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