Two out of every three chemical companies in the BSE 500 list have given over 20 per cent returns in the past one year.
ET Intelligence Group: The ET Intelligence Group’s list of top wealth creators over the past 12 months shows that the lesser tracked, relatively small chemical companies are leading the way among BSE 500 companies. Of the top seven wealth creators on the list, five are from chemicals and allied sectors. These include GMM Pfaudler, which provides process equipment to chemicals and pharma companies, Alkyl Amines Chemicals, Navin Fluorine, JB Chemicals and Deepak Nitrite.
Each of these companies have gained between 90 per cent and 210 per cent in the past one year and between 42 per cent and 90 per cent in the year-to-date on the bourses. Each of them has reported an over 20 per cent rise in sales and a 22-120 per cent jump in net profit in the first nine months of FY20.
Two out of every three chemical companies in the BSE 500 list have given over 20 per cent returns in the past one year. Although at a nascent stage, the chemicals sector is growing at a rapid pace. A report by McKinsey suggests an opportunity worth $11 billion in the domestic market and a larger export potential. India’s chemical sector has grown by 19 per cent annually since 2015 after China started reducing capacities. But, India still exports less than 15 per cent of China’s chemical exports.
Other top gainers include Adani Energy at 444 per cent and Abbott India at 143 per cent.
