The chemicals sector presents diverse investment opportunities through notable listings like Kronox Lab Sciences Limited, Platinum Industries Limited and Deepak Chemtex Limited, offering exposure to India’s growing chemical manufacturing landscape.
Content:
- Overview of the Chemicals IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in Chemicals Sector IPOs
- Disadvantages of Investing in Chemicals Sector IPOs
- Role of the Chemicals Industry in the Economy
- How to invest in Chemicals IPOs?
- Future Outlook of Chemicals IPOs in India
- Chemicals IPOs in India – FAQ
Overview of the Chemicals IPOs in India
The chemicals sector features prominent listings including Kronox Lab Sciences Limited, Platinum Industries Limited and Deepak Chemtex Limited, demonstrating robust potential in specialized chemical manufacturing capabilities.
These offerings enable investors to participate in sector growth while benefiting from increasing industrial demand, export opportunities, research advancements and expanding applications across multiple industries nationwide.
IPO Fundamental Analysis
Kronox Lab Sciences Limited
Kronox Lab Sciences Limited demonstrated strong financial growth in FY24 compared to FY23, with notable improvements in profitability and operating margins. The company’s enhanced efficiency and robust asset base reflect its resilience and strategic focus on sustainable growth across its business operations.
Revenue Trend: Revenue marginally declined to ₹89.86 crores in FY24 from ₹95.58 crores in FY23. However, expenses decreased significantly to ₹61.54 crores in FY24 from ₹73.58 crores in FY23, improving cost efficiency.
Equity and Liabilities: Equity capital remained constant at ₹37.10 crores in FY24. Reserves surged to ₹29.20 crores from ₹7.58 crores in FY23, while total liabilities increased to ₹73.99 crores from ₹54.03 crores.
Profitability: Operating profit grew to ₹28.32 crores in FY24 from ₹22 crores in FY23. The OPM improved sharply to 30.97% in FY24 from 22.56% in FY23, showcasing better operational performance.
Earnings per Share (EPS): EPS increased to ₹5.75 in FY24 from ₹4.48 in FY23, highlighting better returns for shareholders and strong profit growth.
Return on Net Worth (RoNW): RoNW improved in FY24, supported by a net profit increase to ₹21.35 crores from ₹16.62 crores in FY23, reflecting efficient capital deployment.
Financial Position: Total assets rose to ₹73.99 crores in FY24 from ₹54.03 crores in FY23, driven by growth in non-current assets (₹27.40 crores) and current assets (₹46.60 crores). Contingent liabilities were ₹0.18 crores in FY24.
Platinum Industries Limited
Platinum Industries Limited demonstrated robust financial performance in FY24 compared to FY23, with significant growth in revenue, profitability and asset base. The company’s strategic focus on operational efficiency and asset utilization is reflected in its impressive year-on-year financial metrics.
Revenue Trend: Revenue grew to ₹264.39 crores in FY24, a 14.22% increase from ₹231.48 crores in FY23. Expenses rose to ₹203.29 crores from ₹177.62 crores, maintaining strong operational growth.
Equity and Liabilities: Equity capital rose to ₹54.93 crores in FY24 from ₹40.25 crores in FY23, while reserves surged to ₹276.21 crores from ₹21.63 crores. Total liabilities increased to ₹394.97 crores from ₹121.17 crores.
Profitability: Operating profit climbed to ₹61.10 crores in FY24 from ₹53.86 crores in FY23. The operating profit margin (OPM) remained steady at 22.89% compared to 23.16% in FY23.
Earnings per Share (EPS): EPS stood at ₹7.96 in FY24, reflecting a decline from ₹9.42 in FY23, attributed to changes in equity capital and operational scaling.
Return on Net Worth (RoNW): With net profit at ₹43.50 crores in FY24 compared to ₹37.58 crores in FY23 and increased reserves, RoNW displayed continued profitability.
Financial Position: Total assets grew significantly to ₹394.97 crores in FY24 from ₹121.17 crores in FY23, driven by current assets rising to ₹340.37 crores. Contingent liabilities increased to ₹29.75 crores from ₹4.32 crores.
Deepak Chemtex Limited
Deepak Chemtex Limited has demonstrated consistent financial growth across key metrics in FY24 compared to FY23. The company reflects robust revenue trends, strengthened equity, enhanced profitability and a solid financial position, showcasing its resilience and strategic focus.
Revenue Trend: Sales increased to ₹50.19 crores in FY24, up from ₹46.35 crores in FY23, marking an 8.28% growth. Operating profit rose to ₹8.60 crores from ₹7.81 crores, with OPM improving to 17.13% from 16.85%.
Equity and Liabilities: Equity capital surged to ₹10.86 crores in FY24 from ₹0.50 crores in FY23. Total liabilities rose to ₹51.16 crores from ₹23.76 crores, driven by higher reserves and other liabilities.
Profitability: Net profit increased to ₹6.63 crores in FY24 from ₹6.15 crores in FY23, reflecting a 7.80% growth. Profit before tax also rose to ₹8.86 crores from ₹8.20 crores.
Earnings per Share (EPS): EPS for FY24 stood at ₹6.10, reflecting the improved financial performance and profitability of the company compared to the prior fiscal year.
Return on Net Worth (RoNW): RoNW for FY24 was 23%, compared to 34% in FY23, influenced by a significant increase in equity capital and reserves.
Financial Position: Total assets increased to ₹51.16 crores in FY24 from ₹23.76 crores in FY23, with fixed assets at ₹4.85 crores and other assets at ₹46.21 crores in FY24.
IPO Financial Analysis
Kronox Lab Sciences Limited
| FY 24 | FY 23 | FY 22 | |
| Sales | 89.86 | 96 | 82.25 |
| Expenses | 62 | 73.58 | ₹ 62.55 |
| Operating Profit | 28.32 | 22 | 20 |
| OPM % | 30.97 | 22.56 | 23.63 |
| Other Income | 1.58 | 1.92 | 1.09 |
| EBITDA | 29.9 | 23.92 | 20.79 |
| Interest | — | 0 | 0 |
| Depreciation | 1.29 | 1.5 | 2.03 |
| Profit Before Tax | 28.61 | 22.33 | 18.36 |
| Tax % | 25.37 | 25.57 | 25.76 |
| Net Profit | 21.35 | 16.62 | 13.63 |
| EPS | 5.75 | 4.48 | 565.44 |
* Consolidated Figures in Rs. Crores
Platinum Industries Limited
| FY 24 | FY 23 | FY 22 | |
| Sales | 264.39 | 231 | 188.16 |
| Expenses | 203 | 177.62 | ₹ 162.80 |
| Operating Profit | 61.10 | 54 | 25 |
| OPM % | 22.89 | 23.16 | 13.4 |
| Other Income | 2.59 | 1.07 | 1.08 |
| EBITDA | 63.69 | 54.93 | 26.44 |
| Interest | 2 | 2 | 2 |
| Depreciation | 2.92 | 1.83 | 0.89 |
| Profit Before Tax | 58.4 | 50.94 | 23.96 |
| Tax % | 25.52 | 26.21 | 25.93 |
| Net Profit | 43.5 | 37.58 | 17.75 |
| EPS | 7.96 | 9.42 | 168.59 |
* Consolidated Figures in Rs. Crores
Deepak Chemtex Limited
| Mar-24 | Mar-23 | Mar-22 | |
| Sales | 50.19 | 46.35 | 54 |
| Expenses | ₹ 41.59 | ₹ 38.54 | 47.74 |
| Operating Profit | ₹ 8.60 | 8 | 6 |
| OPM % | 17.13% | 16.85% | 11.61% |
| Other Income | 1.18 | 1.13 | 0.33 |
| Interest | 0.16 | 0.08 | 0.09 |
| Depreciation | 1 | 1 | 1 |
| Profit before tax | 8.86 | 8.2 | 5.67 |
| Tax % | 25.06% | 25.12% | 25.57% |
| Net Profit | 6.63 | 6.15 | 4.22 |
| EPS in Rs | 6.1 | 0 | 0 |
* Consolidated Figures in Rs. Crores
About the Company
Kronox Lab Sciences Limited
Kronox Lab Sciences Limited, founded in 2008 and based in Vadodara, specializes in high-purity speciality fine chemicals. Their products cater to diverse industries like pharmaceuticals, nutraceuticals, biotechnology, agrochemicals and personal care.
The company provides fine inorganic chemicals as reagents, excipients and intermediates. Kronox Lab Sciences supports scientific research and industrial applications, contributing to innovation and growth across sectors.
Platinum Industries Limited
Platinum Industries Limited, incorporated in 2016 and headquartered in Mumbai, operates in the speciality chemicals sector. The company manufactures PVC stabilizers, CPVC additives and lubricants for industries like PVC pipes, wires, cables and fittings.
Their products are crucial for SPC floor tiles, foam boards and packaging materials. Platinum Industries emphasizes quality, holding ISO 9001:2015 certification and prioritizing innovation in its offerings.
Deepak Chemtex Limited
Deepak Chemtex Limited focuses on producing speciality, performance and intermediate chemicals for the textiles, paper and water treatment industries. The company aims to deliver high-quality chemical solutions for industrial needs.
They emphasize sustainability by developing eco-friendly products and meeting evolving industry demands while maintaining stringent manufacturing standards and a customer-focused approach.
Advantages of Investing in Chemicals Sector IPOs
The main advantages include exposure to India’s industrial growth, diverse application potential, strong export opportunities and strategic market positioning through established companies like Kronox Lab Sciences and Platinum Industries.
1. Market Diversification: The sector benefits from multiple end-user industries including pharmaceuticals, agriculture, textiles, construction and automotive, providing stable revenue streams and growth opportunities.
2. Export Potential: Strong international demand for speciality chemicals enables significant export opportunities, supporting revenue growth through global market access and value-added products.
3. Innovation Growth: Continuous research and development activities create new product opportunities, technological advancements and improved manufacturing processes enhancing market competitiveness.
Disadvantages of Investing in Chemicals Sector IPOs
The main challenges include raw material price volatility, environmental regulations, research and development costs and competitive pressures, as demonstrated in the performance metrics of companies like Deepak Chemtex Limited.
1. Regulatory Compliance: Companies face stringent environmental norms, safety regulations, quality control requirements, international compliance standards and continuous monitoring needs affecting operational costs significantly.
2. Input Cost Volatility: Fluctuating raw material prices, energy costs, import dependencies, supply chain disruptions and currency fluctuations impact production costs and profit margins substantially.
3. Competition Intensity: Global competition, pricing pressures, technology requirements and continuous innovation demands require substantial investments in research and market development activities.
Role of the Chemicals Industry in the Economy
The chemicals sector drives economic growth through extensive employment generation, export earnings, technology advancement, research development and support to numerous downstream industries nationwide.
The industry contributes significantly to manufacturing GDP, promotes innovation, enhances technological capabilities, supports agricultural productivity and strengthens India’s industrial manufacturing capabilities.
How to invest in Chemicals IPOs?
Start by opening a demat account with Alice Blue, complete comprehensive KYC requirements and thoroughly research upcoming chemical sector IPOs through detailed fundamental analysis.
Monitor SEBI announcements, company prospectuses, market conditions and sector trends and maintain required funds for a timely subscription while following systematic investment approaches.
Future Outlook of Chemicals IPOs in India
The chemicals sector demonstrates promising growth potential with increasing industrial demand, export opportunities, research advancements and expanding applications across multiple industries.
Industry modernization, technological innovation and market expansion initiatives indicate positive prospects for future IPOs, supported by growing domestic and international market demands.
Chemicals IPOs in India – FAQ
Chemical sector IPOs represent the first public offerings from manufacturing companies specializing in chemical production, like Kronox Lab Sciences and Platinum Industries Limited, enabling participation in industrial growth.
Major listings include Kronox Lab Sciences Limited, Platinum Industries Limited and Deepak Chemtex Limited, offering investors exposure to specialized chemical manufacturing capabilities.
Chemical sector IPOs provide strategic investment opportunities in India’s industrial growth, with companies like Kronox Lab Sciences demonstrating the potential for sustainable expansion and innovation.
Kronox Lab Sciences Limited marks a significant milestone as a prominent chemical sector public offering, showcasing strong market interest and setting benchmarks for industry valuations.
Begin by opening a trading account through Alice Blue, completing comprehensive KYC requirements, analysing market conditions, studying company fundamentals and maintaining adequate subscription funds.
Chemical sector IPOs offer substantial long-term growth potential, supported by India’s expanding industrial base, research capabilities, export opportunities and diverse application developments.
Historical performance indicates strong profitability potential, though returns depend on market conditions, raw material costs, research investments and company-specific operational efficiencies.
Market observers anticipate new chemical sector IPOs, following successful listings like Platinum Industries and Deepak Chemtex Limited, driven by sector opportunities.
Access comprehensive research and analysis through Alice Blue’s dedicated research portal, along with additional information from financial websites, SEBI documentation and industry reports.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
