Best Penny Chemical Stocks : India is home to some of the largest chemical manufacturers in the world, producing everything from pharmaceuticals to fertilizers and even plastics. The chemical sector in India has outperformed many other sectors in the last few years. With the government’s push for self-reliance and a growing demand for chemicals in various industries, the chemical sector is expected to grow further. The highly diversified chemical industry, with more than 80,000 products, has great growth potential. As we are exploring penny stocks in this article, it is important to have some background information about the nature of these volatile stocks.
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India's Chemical Sector Outlook
The chemical industry accounts for 7% of India’s GDP. Over the next two decades, over 20% of global chemicals produced will be consumed by India. The domestic chemical market in India is believed to rise to $1000 Billion by 2040 from $180 Billion in 2021. If we talk specifically about Agrochemicals, the current $5.5 billion market is steadily growing at a CAGR of 8.3 percent.
Various factors, including favourable Government policies, contribute to the growth of this industry. China’s strict environmental norms are turning countries towards India for their chemical needs. One way to learn this increasing interest of foreign nations is by checking the FDI inflow data. FDI (Foreign Direct Investments) increased their inflow in the chemicals sector (other than fertilisers) to ₹1,23,962 Crores between April 2000-December 2022 (Check figure 2 for reference). If you are looking to invest in some of the best penny chemical stocks these hand picked stocks are must have in your watchlists.
Advancements in agro-technology give a further boost to India’s Fertilizer market. Currently, India buys more chemicals from other countries than it sells to them, creating a trade deficit of $15 billion. In order to meet this rising internal demand, India will have to produce more to help reduce the deficit and become self-sustainable.
Best Chemical Penny Stocks in India
This brings us to the conclusion that the demand for this sector will shine in the coming years. In this article, we will explore some of the best penny Chemical stocks in India. So,buckle up and get ready to ride the periodic table of elements!
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Best Penny stocks in India under ₹10
Best Penny Chemical Stocks #1 - Paradeep Phosphates
Paradeep Phosphates was founded in the year 1981, the company produces complex fertilizers like nitrogen, phosphorus, potassium and other micronutrients. Their products, sold under the brand names Navratna and Jai Kisaan, cater to all soil types and crops. In the last quarter, Fii’s and Dii’s have increased their stakes in this 2nd largest Phosphate manufacturer in India. With increasing YoY net Profits and growing EBITDA margins, Pradeep Phosphates is a must-have Penny stock under 100 Rs in your portfolio.
Best Penny Chemical Stocks #2 - Bhansali Engineering Polymers Ltd.
Bhansali Engineering Polymers Ltd is an Indian company that produces and sells a variety of plastic resins and alloys. Their products include ABS, AES, ASA, and SAN. ABS (Acrylonitrile Butadiene Styrene) is a widely-used raw material in various industries, including automobiles, kitchenwares, telecommunications, and other sectors. Currently, the stock is trading at ₹114, but the growing demand for their products will help BEPL reach its previous all-time high levels of ₹210. With increasing sales and rising year on year profits, BHPL is another must-have chemical stock in your portfolio.
Best Penny Chemical Stocks #3 - Primo Chemicals Ltd
Primo Chemicals, previously known as Punjab Alkalies & Chemicals, was founded in 1975. Currently, the stock price of Primo Chemicals is ₹74. The company produces and distributes specialty chemicals, pharmaceutical intermediates, and active pharmaceutical ingredients. They offer various products like Hydrochloric Acid, Liquid Chlorine, Sodium Hypochlorite, Hydrogen gas and their main product Castic soda Lye. Primo serves several industries, including pharmaceuticals, agrochemicals, textiles, and personal care. This stock has given whooping returns of 1866% in the last ten years.
Best Penny Chemical Stocks #4 - Andhra Petrochemicals Ltd.
The Andhra Pradesh Industrial Development Corporation (APIDC) and Th Andhra Sugars Ltd (ASL) initially established Andhra Petrochemicals Ltd. (APL) as a joint venture. However, the structure has since evolved into an assisted sector company, with ASL holding the most shares. The stock price for APL is ₹63.43. APL produces 2-Ethyl Hexanol, Normal Butanol, Iso Butanol.
These products have applications in a broad range of sectors, from rubber chemicals to printing inks, pharmaceuticals, and adhesives. APL’s products are also used to manufacture resins, dyes, varnishes, and fuel additives. They also provide surfactants, stabilizers, solvents, plasticizers, and acrylates, crucial components in various industrial processes.
List of Penny Stocks with good fundamentals in Chemical sector
Conclusion
Penny stocks can offer opportunities for investors seeking high-growth potential. However, conducting thorough research and analysis before investing in any penny stock is essential, as they can be highly volatile and risky. Investors can reap the rewards of investing in the best penny chemical stocks by keeping an eye on market trends and using sound investment strategies. Let us know your favourite chemical stock in the comments below.
Great article. I feel its right time to enter chemical sector. It looks very buslish. Also can you please post about railways stocks ?