Chemical sector under pressure: Top chemical stocks see double-digit share price drops YoY

Synopsis: The chemical sector has sharply underperformed over the past year, with several major companies, including Diamines & Chemicals, Chemfab Alkalis, Balaji Amines, Deepak Nitrite, and others reporting steep double-digit declines, reflecting weakened demand, margin pressures, and sector-wide challenges.

The chemical sector, which was once favoured by the market due to its strong past performance, has sharply underperformed over the past year. Multiple well-known chemical companies have experienced significant declines in stock prices, making the sector one of the weakest performers recently. 

The chemical sector has seen a downturn recently due to multiple factors, including subdued demand and global destocking, which have weighed heavily on stock performance. Intense competition from Chinese chemical manufacturers has added further pressure, impacting pricing power across the sector. Export hurdles and regulatory challenges have also constrained growth opportunities for many companies.

Diamines & Chemicals Ltd

Diamines & Chemicals Ltd is a leading Indian manufacturer of ethyleneamines and related specialty chemicals used in pharmaceuticals, agrochemicals, water treatment, and resin formulations. The company caters to both domestic and international markets and is known for its niche product portfolio in amine-based chemistry.

With market capitalization of Rs. 249 cr, the shares of Diamines & Chemicals Ltd are closed at Rs. 255 per share, from its previous close of Rs. 258 per share. The stock is down by 50% from the past year.

Chemfab Alkalis Ltd

Chemfab Alkalis Ltd is a chlor-alkali manufacturing company producing caustic soda, liquid chlorine, hydrogen, and related chemicals. It is recognized for adopting modern, energy-efficient membrane cell technology and serves industries such as textiles, paper, alumina, and water treatment.

With market capitalization of Rs. 734 cr, the shares of Chemfab Alkalis Ltd are closed at Rs. 511 per share, from its previous close of Rs. 515 per share. The stock is down by 44% from the past year.

Balaji Amines Ltd

Balaji Amines Ltd is a prominent producer of aliphatic amines, specialty chemicals, and derivatives used in pharmaceuticals, agrochemicals, and water treatment. The company operates multiple manufacturing facilities and has a strong presence in the domestic amine market, supported by consistent capacity expansions.

With market capitalization of Rs. 3,735 cr, the shares of Balaji Amines Ltd are closed at Rs. 1,149 per share, from its previous close of Rs. 1,172.85 per share. The stock is down by 43% from the past year.

Deepak Nitrite Ltd

Deepak Nitrite Ltd is one of India’s leading chemical intermediates manufacturers with operations in basic chemicals, fine chemicals, and performance products. It serves industries like dyes, pharmaceuticals, agrochemicals, and petrochemicals, and is known for its strong operational scale and diversified product mix.

With market capitalization of Rs. 21,258 cr, the shares of Deepak Nitrite Ltd are closed at Rs. 1,558 per share, from its previous close of Rs. 1,580.90 per share. The stock is down by 42% from the past year.

Oriental Aromatics Ltd

Oriental Aromatics Ltd specializes in the production of aroma chemicals, flavors, fragrances, and camphor. The company supplies its products to the FMCG, perfumery, and pharmaceutical sectors and is recognized for its strong R&D capabilities in synthetic and natural aroma ingredients.

With market capitalization of Rs. 1,050 cr, the shares of Oriental Aromatics Ltd are closed  at Rs. 312 per share, from its previous close of Rs. 315 per share. The stock is down by 41% from the past year.

Neogen Chemicals Ltd

Neogen Chemicals Ltd manufactures lithium salts, bromine-based compounds, and specialty organic chemicals. Its products are widely used in pharmaceuticals, agrochemicals, engineering polymers, and battery materials, and the company is expanding capacity to tap into high-growth chemical segments.

With market capitalization of Rs. 2,968 cr, the shares of Neogen Chemicals Ltd are closed at Rs. 1,125 per share, from its previous close of Rs. 1,186 per share. The stock is down by 45% from the past year.

IG Petrochemicals Ltd

IG Petrochemicals Ltd is one of India’s largest producers of phthalic anhydride, a key chemical used in plastics, paints, dyes, and resins. The company benefits from scale, strong domestic demand, and a leadership position in the petrochemical intermediates segment.

With market capitalization of Rs. 1,193 cr, the shares of IG Petrochemicals Ltd are closed at Rs. 387 per share, from its previous close of Rs. 380 per share. The stock is down by 30% from the past year.

Laxmi Organic Industries Ltd

Laxmi Organic Industries Ltd operates primarily in specialty intermediates and solvents, including acetyl intermediates and diketene derivatives. The company has established itself as a key supplier to pharmaceutical, agrochemical, and specialty chemical manufacturers.

With market capitalization of Rs. 5,035 cr, the shares of Laxmi Organic Industries Ltd are closed at Rs. 182 per share, from its previous close of Rs. 183.05 per share. The stock is down by 30% from the past year.

Clean Science & Technology Ltd

Clean Science & Technology Ltd is a globally recognized manufacturer of performance chemicals such as MEHQ, BHA, anisole, and specialty catalysts. It focuses on clean, eco-friendly manufacturing processes and supplies to FMCG, pharma, and polymer sectors, maintaining strong export-driven growth.

With market capitalization of Rs. 9,704 cr, the shares of Clean Science & Technology Ltd are closed at Rs. 913 per share, from its previous close of Rs. 918 per share. The stock is down by 29% from the past year.

Tata Chemicals Ltd

Tata Chemicals Ltd is a diversified chemical company engaged in soda ash, salt, specialty silica, nutritional ingredients, and energy materials. With operations across multiple countries, the company serves glass, detergents, pharmaceuticals, and food industries while also exploring opportunities in battery and green chemistry.

With market capitalization of Rs. 20,393 cr, the shares of Tata Chemicals Ltd are closed at Rs. 800 per share, from its previous close of Rs. 809per share. The stock is down by 27% from the past year.

Written by Manideep Appana

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