Best Chemical Pen Stocks in India: In the modern era, chemicals act as the catalysts for progress, quietly shaping the landscape of technology, medicine and agriculture. With India being in the phase of continuous expansion, there is a good amount of scope for the chemical industries in the future.
This opens up an exciting opportunity for investment in the chemical sector. Today we will talk about the best chemical penny stocks in India
Best Chemical Pen Stocks in India
Beardsell Ltd
Beardsell Ltd was incorporated in 1936 and is engaged in Expanded Polystyrene products, popularly known as thermocole and Prefabricated Buildings.
The company produces Quik Build, which is an ecological building system with fast construction times, thermal insulation and cost savings.
It also provides customized pre-fabricated structures for rapid deployment, turnkey cleanroom solutions and special offers for the defense sector. The company also offers packaging solutions such as EPS, anti-static and composite packaging.
The company has its manufacturing facilities in various locations across India, including Thane, Chennai, Hyderabad, Karad, Malur, and Hapur. In addition, the Company has an extensive presence in India and business operations in domestic and international markets.
During FY23, the company earned an operating income of Rs. 232.01 crore which is an increase of 24% compared to the operating income of Rs.186.13 crore in FY22.
Similarly, the company’s net profit increased significantly in FY23 compared to its previous financial year. During FY23, the company reported a net profit of Rs.8.49 crore, which is an increase of 202% from Rs 2.81 Crore in FY22.
The company’s ROE and RoCE during FY23 stood at 15.2% and 18.5%, which indicates that the company has given good returns to shareholders and effectively utilized its total resources.
Archit Organosys
Formerly known as Shri Chlochem, Archit Organosys Ltd started its operations in 1989 with a few chemical molecules.
Today, the company produces and trades organic chemicals, adhesives, pigments, sealants and specialty derivatives such as monochloroacetic acid, and sodium chloroacetate.
These products are used in the synthesis of various agricultural chemicals, oil drilling chemicals, cosmetic surfactants and plastic additives, among others. The company has two factories located in Ahmedabad and Bhavnagar.
Major clients of the company include several large Indian and international companies engaged in the agrochemical, pharmaceuticals, and cosmetics manufacturing sectors.
In addition, the company sells its products across Pan-India as well as USA, Europe, Latin America, Other Asian Countries and South Africa.
The operating income earned by the company during FY23 slightly reduced at Rs.129.70 crore as against Rs.139.82 crore in FY22, showing a reduction of 7.23%.
However, the company increased its net profits during the same period from Rs.8.23 crore in FY22 to Rs.11.42 crore in FY23, which is an increase of 38.82%. This was a result of the reduction in operating expenses.
The ROE and RoCE during the recent financial year were reported at 17.6% and 17.3% respectively, indicating a good use of the company’s resources.
Hindcon Chemical
Incorporated in 1998, Hindcon Chemicals is engaged in manufacturing and construction-related products such as concrete and mortar admixtures, flooring, protective waterproof coatings and adhesives.
In addition, it provides services that include waterproofing, turnkey projects, repair services and renovations for damaged structures.
The company operates through its facility located in Jalan Industrial Complex, which is on the outskirts of Kolkata. In FY23, the company has an annual capacity of f 18,000 MT for sodium silicate and 12,000 MT for cement additives.
The company serves customers from business-to-business (B2B) and business-to-consumer (B2C) segment. During FY23, the company’s B2B customers accounted for 71% of the company’s revenues.
During FY23, the company’s revenue from operations increased to Rs.85.59 crore as against Rs. 66.61 crore in the previous financial year. Similarly, the net profits increased to Rs.4.35 crore as compared to Rs.4.26 crore during the same period.
The ROE and RoCE were reported at 10.6% and 14.3% respectively, which is below the average return for the company’s shareholders. On a positive note, the company reported a debt-to-equity ratio of 0.02, which indicates that the company is primarily operating on its own funds.
Sunil Healthcare
Incorporated in 1976, Sunil Healthcare Ltd is engaged in manufacturing Empty Hard Gelatin, HPMC Capsule Shells and Ayurvedic Medicines.
Currently, the company produces double lock, triple lock, multiple groove ₹ 75.6 Cr.capsules of EHGC & some proportion of vegan HPMC (Hydroxy Propyl Methyl Cellulose) along with liner, circular, two color printing and 360 degree printing.
The company operates from its facility located at Alwar with an installed capacity of 15 billion capsules per annum in 9 sizes – 00, 0SEL, 0EL, 0, 1, 2, 3, 4 & 5. In addition, the company also has a global presence. with subsidiaries in the United States and Mexico.
Some of the company’s clients include Abbott, Cadila, Himalaya, Sun Pharma, Ajanta Pharma, Dabur, Intas, Alkem, GSK, and Mankind.
During FY23, the company’s revenue from operations slightly declined to Rs.110.49 crore as against Rs.119.16 crore of the previous financial year. On the other hand, the net profits increased to Rs.6.68 crore as compared to Rs.6.42 crore during the last year.
The ROE and RoCE were reported at 11.9%% and 14.7% respectively, which suggests room for the improvement of efficiency of company resources.
Crop Life Science
Crop Life Science was incorporated in 2006 as a small scale unit for production of crop protection chemicals.
Over the years, through its acquisitions, and backward and forward integration, the company has become one of the leading manufacturers of a wide range of products. These products include pesticides, fungicides, herbicides, microfertilizers, new generation organic biostimulants and biofertilizers, plant growth regulators and soil plant health products.
The company has a manufacturing unit located in Ankleshwar, Gujarat through which it supplies its products in Gujarat, Madhya Pradesh, Maharashtra, Chhattisgarh, Uttar Pradesh, West Bengal and Bihar.
In addition, the company exports its premium, branded Products in Egypt, Saudi Arabia, Iran, Oman, Nepal, Bangladesh, Thailand, Malaysia, Indonesia and Vietnam.
During FY23, the company increased its revenue from Rs.102 crore to Rs.131.22 crore from the previous year registering an increase of 28%. During the same duration, the company increased its net profits from Rs.2.81 crore in FY22 to Rs.4.07 crore in FY23.
Although the company increased its revenues and profits, the ROE and RoCE stood at 10.6% and 14.2% suggesting below-average efficiency in its resource utilization.
Conclusion
As we conclude our article on “More Chemical Penny Stocks in India”, we note that although the companies have improved their performance in recent years, it has not been consistent. In addition, penny stocks are extremely volatile with low liquidity, which can affect your portfolio.
Written by Aaron Vas
By using the stock screener, stock heat map, portfolio backtestingand stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also updated with stock market newsand make a well-informed investment.
Start Your Stock Market Journey Today!
Do you want to learn stock market trading and investing? Be sure to check out exclusive Stock Market courses from FinGrad, Trade Brains’ learning initiative. You can enroll in FREE courses and webinars available at FinGrad today and get ahead in your business career. Join now!!