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Petrochemicals Stocks

India's petrochemical sector is a linchpin in the nation's economic aspirations, poised to bolster various industries. The sector holds a global prominence with significant contributions to GDP and exports, valued at $190 billion. Forecasts project substantial growth, with investments exceeding $87 billion and the market set to reach $300 billion by 2025. Government initiatives, including 100% FDI and PCPIR zones, further propel this trajectory, aiming for over $420 billion in investments by 2035. Before investing, evaluate market trends, regulatory landscapes, supply chain dynamics, environmental impacts, and government policies. Deepak Fertilisers and Petrochemicals Corp Ltd emerge as a top investment choice with a robust 5-year CAGR of 37.51%, promising substantial growth in the sector. Read More
Company
LTP
Volume
Market Cap
52W Low
52W High

LTP

₹ 1,152

70.35 (6.50%)

Volume

2,82,716

Market Cap

₹1,617 Cr

52W Low

₹602.95

52W High

₹1,180.00

LTP

₹ 103.24

-0.34 (-0.33%)

Volume

9,21,096

Market Cap

₹2,576 Cr

52W Low

₹81.60

52W High

₹118.00

LTP

₹ 58.86

1.63 (2.85%)

Volume

62,00,329

Market Cap

₹1,690 Cr

52W Low

₹42.10

52W High

₹72.40

LTP

₹ 783.05

1.35 (0.17%)

Volume

14,403

Market Cap

₹718 Cr

52W Low

₹492.25

52W High

₹1,009.00

LTP

₹ 18.97

-0.06 (-0.32%)

Volume

20,559

Market Cap

₹37 Cr

52W Low

₹9.20

52W High

₹23.74

LTP

₹ 136.63

1.91 (1.42%)

Volume

47,501

Market Cap

₹793 Cr

52W Low

₹67.45

52W High

₹170.00

LTP

₹ 90.82

1.57 (1.76%)

Volume

10,26,433

Market Cap

₹1,533 Cr

52W Low

₹55.95

52W High

₹92.00

LTP

₹ 397.8

19.40 (5.13%)

Volume

3,69,581

Market Cap

₹2,288 Cr

52W Low

₹281.70

52W High

₹404.95

LTP

₹ 2,880

-18.75 (-0.65%)

Volume

41

Market Cap

₹116 Cr

52W Low

₹1,064.00

52W High

₹3,340.00

LTP

₹ 522

7.70 (1.50%)

Volume

55,805

Market Cap

₹3,557 Cr

52W Low

₹279.75

52W High

₹614.90

LTP

₹ 2,165.75

80.15 (3.84%)

Volume

64,262

Market Cap

₹3,654 Cr

52W Low

₹986.55

52W High

₹2,183.95

LTP

₹ 742.2

6.45 (0.88%)

Volume

39,586

Market Cap

₹13,866 Cr

52W Low

₹377.00

52W High

₹783.00

LTP

₹ 5.67

-0.29 (-4.87%)

Volume

357

Market Cap

₹9 Cr

52W Low

₹0.00

52W High

₹5.67

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About the Petrochemicals Sector

As India aims to achieve a $5 trillion GDP by 2024-25, the petrochemical and derivatives sector is set to play a crucial role. This sector serves as a foundation for agriculture, infrastructure, manufacturing, and services. It is a key driver of India’s economic progress and is expected to continue being a significant growth engine.

The chemical and petrochemical industries are essential for India’s development, contributing to various sectors. However, challenges like fluctuating feedstock prices and uncertain demand impact not only India but also global businesses. Currently valued at $190 billion, the Indian Chemicals and Petrochemicals sector holds a prominent position on the world stage.

India is not just the 6th largest chemical manufacturer globally and the fourth-largest in Asia but also exports chemicals to over 175 countries, making up 13% of the country’s total exports. The petrochemical sector in India has evolved significantly since its start in the 1970s and is poised for further growth and transformation in the coming years.

Summary

India’s petrochemical sector stands as a linchpin in the nation’s economic aspirations, poised to bolster various industries. With significant contributions to GDP and exports, valued at $190 billion, the sector holds a global prominence. Forecasts project substantial growth, with investments exceeding $87 billion and the market set to reach $300 billion by 2025. Government initiatives, including 100% FDI and PCPIR zones, further propel this trajectory, aiming for over $420 billion investments by 2035. Before investing, evaluate market trends, regulatory landscapes, supply chain dynamics, environmental impacts, and government policies. Deepak Fertilisers and Petrochemicals Corp Ltd emerges as a top investment choice with a robust 5-year CAGR of 37.51%, promising substantial growth in the sector.

Future Outlook of the Petrochemicals Sector

In the coming decades, the global demand for petrochemicals is expected to increase, and India is poised to contribute significantly to this growth. The chemical sector in India is outpacing the GDP, growing at a rate 1.2-1.5 times faster. The current estimate of the Indian chemical market is $178 billion, and it is projected to reach $300 billion.

The next decade is anticipated to bring in investments exceeding $87 billion into the sector, with India accounting for over 10% of global petrochemical growth. The government is actively supporting this growth through various initiatives, such as allowing 100% Foreign Direct Investment (FDI) through automatic pathways, creating Petroleum, Chemicals, and Petrochemicals Investment Region (PCPIR) zones, and setting up more than 10 plastic parks.

A new PCPIR strategy, to be implemented between 2020 and 2035, aims to generate a substantial investment of over $420 billion (Rs. 34 lakh crore) for the chemical sector in India. These measures are expected to further boost the industry’s development and contribute significantly to the global petrochemical landscape.

Things To Consider Before Investing in the Petrochemicals Sector

Before investing in the petrochemicals sector, there are several key factors to consider:

  • Market Trends and Demand: Analyse current market trends and forecasted demand for petrochemical products. Consider factors like global economic conditions, geopolitical stability, and emerging market demands.
  • Regulatory Environment: Understand the regulatory landscape in the region where you plan to invest. Regulations can impact operations, environmental compliance, and overall business viability.
  • Supply Chain Dynamics: Assess the entire supply chain, from raw materials to distribution. Understand the logistics, transportation, and infrastructure involved in the petrochemical industry.
  • Environmental and Social Impact: Consider the environmental and social aspects of petrochemical operations. Investors are increasingly concerned about sustainability and ethical practices. Assess how the company manages environmental risks and engages with the local community.
  • Global Economic Conditions: Given the global nature of the petrochemical industry, be mindful of broader economic conditions. Economic downturns or fluctuations in currency exchange rates can impact the sector.
  • Government Policies and Incentives: Stay informed about government policies and incentives that may impact the petrochemical sector. Some regions offer tax incentives or subsidies to encourage investment in specific industries.
  • Cyclical Nature of the Industry: Petrochemicals can be cyclical, with demand affected by economic cycles. Consider the resilience of your investment to economic downturns and the ability of the company to navigate through industry cycles.

How To Invest in the Petrochemicals Sector Stocks?

To invest in sector stocks via Angel One, follow these steps:

  • Log in to your Angel One account.
  • Click on the search icon and look for your desired petrochemical sector stock.
  • Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
  • To complete your transaction, click on the ‘Buy’ button.

You can track the status of the purchase from the ‘Positions’ section in the ‘Orders’ module. Once the stock is delivered, you can track its gains and losses from your ‘Portfolio.’

FAQs

What are petrochemical sector stocks?

Petrochemical sector stocks represent shares in companies involved in the production and distribution of chemical products derived from petroleum or natural gas.

Which is the top stock from the petrochemical sector in terms of market cap?

As of January 31, 2024, Mangalore Refinery and Petrochemicals Ltd is the top stock from the petrochemicals sector with a market capitalisation of ₹31,029.76 crore.

How to evaluate petrochemical sector stocks?

Evaluate petrochemical sector stocks by analysing metrics such as price-to-earnings ratio (P/E), debt levels, return on equity (ROE), dividend yield, and assessing exposure to geopolitical risks.

Why should you invest in petrochemical sector stocks?

Investing in petrochemical sector stocks can be lucrative due to the sector’s strong growth potential, increasing global demand, and government initiatives fostering industry development.

Which are the best petrochemical sector stocks to invest in?

Deepak Fertilisers and Petrochemicals Corp Ltd is one of the best petrochemical sector stocks on the basis of 5Y CAGR from the NIFTY 500 universe. As of January 31, 2024, the company recorded a CAGR of 37.51% in the past 5 years.

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