India ranks as the 6th largest chemical producer globally and holds the 3rd position in Asia, contributing ~7 percent to the nation’s GDP. The Indian chemical industry is currently valued at around $220 billion and is projected to grow to $300 billion by 2030 and $1 trillion by 2040.
On the global stage, India is the fourth-largest producer of agrochemicals, following the US, Japan, and China. The country also contributes about 16-18 percent to the world’s production of dyestuffs and dye intermediates. India’s colourants industry has established itself as a significant global player, holding an estimated 15 percent share of the international market.
By 2025, the Indian chemicals and petrochemicals sector is expected to attract investments totalling Rs. 8 lakh crore. Within the global $4 trillion chemical industry, specialty chemicals represent a 20 percent share. India’s specialty chemicals market is anticipated to grow at a CAGR of 12 percent, reaching $64 billion by 2025.
Here are a few chemical stocks with a high RoE and RoCE of more than 20 percent to keep in your radar:
Amal Limited
With a market cap of Rs. 1,252 crores, the stock moved down by around 3 percent on BSE to close in the red at Rs. 1,012.8 on Friday. Amal Limited is engaged in the business of manufacturing bulk chemicals such as sulphuric acid, oleum and their downstream products such as sulphur dioxide and sulphur trioxide.
On the financial front, the company’s revenue from operations grew by around 131 percent YoY to Rs. 47.3 crores, while the net profit also grew by nearly 1989 percent YoY to Rs. 9.4 crores in Q1 FY26. In terms of key financial metrics, Amal has a Return on Equity (RoE) of 34.6 percent and a return on capital employed (RoCE) of 36 percent, with no debt.
Chambal Fertilisers & Chemicals Limited
With a market cap of Rs. 21,964 crores, the stock moved down by around 1.2 percent on BSE to close in the red at Rs. 548.2 on Friday. Chambal Fertilisers and Chemicals Limited is engaged in the business of the production of urea, along with dealing in other fertilisers and agri-inputs.
On the financial front, the company’s revenue from operations declined marginally by around 7 percent YoY to Rs. 2,449 crores, while the net profit grew by nearly 34 percent YoY to Rs. 130 crores in Q4 FY25.
In terms of key financial metrics, Chambal Fertilisers has a Return on Equity (RoE) of 20.6 percent and a return on capital employed (RoCE) of 27.9 percent, with a debt-to-equity ratio of 0.01.
Pidilite Industries Limited
With a market cap of Rs. 1.5 lakh crores, the stock moved down by around 1 percent on BSE to close in the red at Rs. 2,958.7 on Friday. Pidilite Industries Limited is a pioneer in consumer and industrial speciality chemicals in India.
On the financial front, the company’s revenue from operations grew by around 8 percent YoY to Rs. 3,141 crores, while the net profit also grew by nearly 41 percent YoY to Rs. 428 crores in Q4 FY25.
In terms of key financial metrics, Pidilite Industries has a Return on Equity (RoE) of 23.1 percent and a return on capital employed (RoCE) of 29.9 percent, with a debt-to-equity ratio of 0.05.
POCL Enterprises Limited
With a market cap of Rs. 650 crores, the stock moved down by around 0.4 percent on BSE to close in the red at Rs. 233 on Friday. POCL Enterprises Limited is engaged in the business of manufacturing metallic oxides such as zinc oxides & lead oxides, metals such as zinc metal & lead metal and PVC stabilisers. It serves the requirements of the battery, rubber and PVC pipes & profile industries.
On the financial front, the company’s revenue from operations grew by around 21 percent YoY to Rs. 372 crores, while the net profit also grew by nearly 57 percent YoY to Rs. 11 crores in Q4 FY25.
In terms of key financial metrics, POCL Enterprises has a Return on Equity (RoE) of 37.6 percent and a return on capital employed (RoCE) of 32 percent, with a debt-to-equity ratio of 1.1.
Written by Shivani Singh
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