Best Debt-Free Chemical Stocks: Chemicals that are produced are utilized by a wide range of Industries. From saving lives through pharmaceutics to cutting-edge materials, chemicals are used in different activities. Chemical industries often get affected by the global economic conditions affecting the supply of raw materials, and other regulatory changes that make industry highly cyclical. Here in this article, we shall have a look at debt-free companies operating in the chemical industry.
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Best Debt-Free Chemical Stocks In India
Debt-Free Chemical Stocks #1: Indo Borax & Chemicals
Indo Borax & Chemicals was established in the year 1980. The company operates as one of the most modern boric acids. The company has a plant that is statically built in Pithampur, Madhya Pradesh, with efficient transportation facilities enabling them to connect with different parts of India.
The company can employ a continuous process with full capacity in generating the power requirements. Along with this, the company also has approval from the Food and Drug Administration that allows them to manufacture a boric acid that is of pharmaceutical grade.
The demand for Boron products is increasing each year and recently the company also received a certification with Burea of Indian standards, meeting the BIS standards. As a part of its expansion, the company has installed a new plant of Boric Acids in the same location at Pithampur.
One of the major risks that is seen in the industry is concerns the imports of boron minerals, this dependency on imports could be a matter of concern due to the competitive prices. Therefore to reduce the risk the company is engaging itself in exploring the alternative solution possibilities to reduce the risk.
The income statement of the company shows the revenue from operations for the company in FY 2022 was 175.72 crores which was increased to 225.08 crores in FY 2023. This results in a year-on-year (YOY) growth of 28.09%. The company reported a net profit of 36.37 crores in FY 2022. In FY 2023 the net profit was increased to 50.69 crores which is a year-on-year growth of 39.38%.
The Return on Equity(ROE) of the company in FY 2022 was 19.14%, which in FY 2023 was increased to 21.93%. The Return on capital employed(ROCE) of the company in FY 2022 was 26.26%, which in FY 2023 was increased to 29.78%. The company has had no debts for the past five years. The Promoters of the company hold 52.07%, followed by Public with 47.92% as of September 2023.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹157.00 | Market Cap (Crores) | ₹503.00 |
| EPS | ₹12.50 | Stock PE | 12.50 |
| ROE | 21.00% | ROCE | 29% |
| Promoters Holding | 52.10% | FII Holding | 0.03% |
| Debt to Equity | 0 | P/B | 1.86 |
| Operating Profit Margin | 27.50% | Net profit margin | 21.60% |
Debt-Free Chemical Stocks #2: Tanfac Industries
Tanfac Industries was established in the year 1972. The company is one of the leading and largest producers of Hydrofluoric acid and Aluminium Fluoride in India. The company was the first to achieve ISO certification as a chemical manufacturing company.
Tanfac Industries works as a Joint venture company that is been promoted by Anupam Rasayan India Limited and TN Industrial Development Corporation(TIDCO). It exports to more than 12 countries. The company has a manufacturing unit that is spread across 60 acres of wide land in Cuddalore.
The company is engaged in the manufacturing of various acids such as Anhydrous Hydrofluoric acid, aluminum fluoride, potassium fluoride, acetic acid, Poly aluminum, and many more.
The income statement of the company shows the revenue from operations for the company in FY 2022 was 320.17 crores which was increased to 374.95 crores in FY 2023. This results in a year-on-year (YOY) growth of 17.11%.
The company reported a net profit of 53.28 crores in FY22. In FY23, their net profit was increased to 56.13 crores which is a year-on-year growth of 5.34%.
The Return on Equity(ROE) of the company in FY 2022 was 49.12%, which in FY 2023 stood at 35.30%. While their Return on capital employed(ROCE) declined from 67.86% in FY 2022 to 48.62% in FY 2023. The company has been debt free for the last 3 years.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹1,935.00 | Market Cap (Crores) | ₹1,930.00 |
| EPS | ₹62.40 | Stock PE | 31.00 |
| ROE | 35% | ROCE | 48% |
| Promoters Holding | 51.80% | FII Holding | 0.00% |
| Debt to Equity | 0 | P/B | 9.27 |
| Operating Profit Margin | 20.30% | Net profit margin | 14.60% |
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Debt-Free Chemical Stocks #3: Nocil
Nocil was established in 1961, and its operations include the manufacturing of rubber chemicals that are used by the tyre industry as well as other rubber processing industries.
Nocil is the largest manufacturer of Rubber chemicals in India with its plants in Navi Mumbai and Dahej. The company is part of the Arvind Mafatlal group, which is well-established and operating in India having diversified interests.
The company’s product portfolio includes a range of well-known brands such as PILFLEX, PILNOX, PILCURE, and PILGARD.
PILFLEX is a chemical that is used to protect the vulcanizate, PILNOX is another chemical that is used to protect the vulcanizate against heat degradation.
PILCURE is a chemical that gets added to the rubber compound to enhance the speed of the vulcanization. Lastly, PILGARD is a chemical required to improve the processability and storage life during the process of molding.
The income statement of the company shows the revenue from operations for the company in FY 2022 was 1571.31 crores which increased to 1616.57 crores in FY 2023, a marginal YoY growth of 3%.
NOCIL reported a 15% decline in profits from Rs 176 crores in FY 2022 to Rs 149.15 crores in FY23.
The Return on Equity(ROE) of the company in FY 2022 was 12.90%, which in FY 2023 stood at 9.95 % and their Return on capital employed (ROCE) of the company slipped from 17 %FY 2022 to 13% in FY 2023.
The Promoters of the company hold 33.84%, followed by Public with 56.76% as of September 2023.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹245.00 | Market Cap (Crores) | ₹4,079.00 |
| EPS | ₹7.19 | Stock PE | 34.00 |
| ROE | 9.89% | ROCE | 13.40% |
| Promoters Holding | 33.80% | FII Holding | 6.98% |
| Debt to Equity | 0 | P/B | 2.48 |
| Operating Profit Margin | 15.60% | Net profit margin | 9.17% |
Debt-Free Chemical Stocks #4: Diamines & Chemicals
Diamines & Chemicals was established in 1976. The company’s operations include the manufacturing of ethylene amines. They have a wide range of products that includes Piperazine Anhydrous, Polyamine Mix, Piperzine 68% solution, and Monoethanolamine.
The company is also working to add new products to its portfolio, some of the products that are under development include Piperazine derivatives, Diacetyl Ethylenediamine, and many more.
Diamines & Chemicals caters its services to a wide range of manufacturing industries, including Bulk drugs, Gas sweetening, textiles, water treatments, and Lube oil additives.
The income statement of the company shows the revenue from operations for the company in FY 2022 was 66.11 crores which was increased to 110.56 crores in FY 2023. This results in a year-on-year (YOY) growth of 67.24%.
The company reported a net profit of 16.71 crores in FY 2022. In FY 2023 the net profit was increased to 41.91 crores which is a year-on-year growth of 150.74%. The company was able to generate more revenue and cut down on costs which made them increase their profits.
The Return on Equity(ROE) of the company in FY 2022 was 18.05%, which in FY 2023 was increased to 35.71%. On an average of 3 years, the Return on Equity(ROE) of the company stood at 26.15%.
The Return on capital employed(ROCE) of the company in FY 2022 was 23.82%, which in FY 2023 stood at 47.96%. On an average of 3 years, the Return on capital employed(ROCE) of the company is 34%.
The company had 0.65 debt in FY 2019 which they have repaid and since FY 2021 the company has been debt-free. The Promoters of the company hold 54.63%, followed by Public with 45.35% as of September 2023.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹544.00 | Market Cap (Crores) | ₹532.00 |
| EPS | ₹24.90 | Stock PE | 21.80 |
| ROE | 35% | ROCE | 48.40 |
| Promoters Holding | 54.60% | FII Holding | 0.00% |
| Debt to Equity | 0 | P/B | 3.71 |
| Operating Profit Margin | 50.60% | Net profit margin | 38.30% |
Debt-Free Chemical Stocks #5: Paushak
Paushak was incorporated in the year 1968, with 115 years of rich experience and the legacy company now stands as India’s largest Phosgene-based chemical manufacturer. The core competencies of the company lie in the manufacturing the Isocyanates, Carbamoyl chlorides, Carbamates, etc.
Paushak has a strong workforce of 350 members and a research and development section with 30 scientists involved and dedicated to it. The income statement of the company shows the revenue from operations for the company in FY 2022 was 150.1 crores which was increased to 212.35 crores in FY 2023. This results in a year-on-year (YOY) growth of 41.47%.
The company reported a net profit of 37.61 crores in FY 2022. In FY 2023 the net profit was increased to 54.01 crores which is a year-on-year growth of 43.59%.
The Return on Equity(ROE) of the company in FY 2022 was 13.03%, which in FY 2023 increased to 16.39%. On an average of 3 years, the Return on Equity(ROE) of the company stood at 14.79%.
The Return on capital employed(ROCE) of the company in FY 2022 was 17.39%, which in FY 2023 stood at 21.94. On an average of 3 years, the Return on capital employed(ROCE) of the company is 19.98%.
The Promoters of the company hold 66.97%, followed by Public with 33.01% as of September 2023.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹4,856.00 | Market Cap (Crores) | ₹1,497.00 |
| EPS | ₹164.00 | Stock PE | 29.60 |
| ROE | 15.30% | ROCE | 20.50% |
| Promoters Holding | 67.00% | FII Holding | 0.02% |
| Debt to Equity | 0 | P/B | 4.04 |
| Operating Profit Margin | 35.40% | Net profit margin | 23.70% |
Here is the list of Other chemical stocks that are debt-free:
| Name | CMP | Market Cap | Debt to Equity |
|---|---|---|---|
| Indo Borax & Chemicals | ₹157 | ₹503 | 0 |
| Tanfac Industries | ₹1,935 | ₹1,930 | 0 |
| Nocil Ltd | ₹245 | ₹4,079 | 0 |
| Diamines&Chemicals | ₹544 | ₹532 | 0 |
| Paushak Ltd | ₹4,856 | ₹1,497 | 0 |
| Elantas beck India Ltd | ₹8,249 | ₹6,541 | 0 |
| Bhansali Engineering Polymers | ₹87 | ₹2,168 | 0 |
| Plastiblends India Ltd. | ₹234 | ₹608 | 0 |
| Chemfab Alkalis Ltd. | ₹613 | ₹872 | 0 |
| Indian Toners & Developers Ltd. | ₹279 | ₹303 | 0 |
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Conclusion
As we come to the end of the article “Best Debt-Free Chemical Stocks in India”. To give a quick brief, we learned about five different stocks operating in the chemical Industry. Overview of companies, their presence their operations, and key metrics were explained in this article. Do drop a comment about your views in the comment section below.
Written by Nishanth P
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