Four chemical stocks down up to 49% from 52-week highs
Chemical stocks have fallen due to Chinese dumping, the global demand slowdown, rising input costs, and tepid quarterly results. In some cases, the fall has been due to company-specific reasons. Here is a list of four chemical stocks that are down up to 49% from their 52-week high prices.
The chemical industry in India is highly diverse, with some manufacturers serving a wide range of sectors such as automotive, construction, textiles, and pharmaceuticals. Others focus on specialised areas like agrochemicals.
Recently, stocks in the chemical sector have experienced a decline driven by several factors. The stock prices of many companies have dropped considerably from their 52-week highs.
Given the diverse nature of the industry, the reasons for stock performance often vary between broader industry trends and specific company challenges.
For instance, certain firms have been affected by the surplus capacity in China, exerting downward pressure on prices for Indian producers.
Additionally, Chinese competitors continue to flood the market with cheaper alternatives, intensifying competition and eroding profit margins in certain pockets.
Within the agrochemical segment, weak demand, inventory destocking, and postponed purchases have resulted in reduced revenues.
Furthermore, rising input costs and lingering global supply chain disruptions have exacerbated the pressure on profit margins for some companies.
Here’s a look at four such companies. This is neither a stock recommendation nor a fundamental analysis of these companies.
#1 Neogen Chemicals
Neogen Chemicals is a leading manufacturer of specialty chemicals with a strong presence in bromine-based and lithium-based chemistries.
The company caters to diverse industries including pharmaceuticals, agrochemicals, electronics, water treatment, construction, polymers, flavours & fragrances and energy storage.
The stock of Neogen Chemicals is down almost 49% from its 52-week highs. One of the top reasons for a fall in the stock is a fire that took place at its Dahej plant in March this year.
The company saw revenues of ₹208 crore in Q2 FY26 vs ₹193 crore YoY. Net profits dived to ₹3.3 crore vs ₹10.9 crore YoY.
The Ebitda margin percentage was constrained by various factors. Some of them were higher employee costs stemming from performance-linked incentives and strategic new hires.
Also, a sharp rise in the insurance premium following the fire incident along with increased job work and conversion costs impacted margins.
Moving ahead, the company is likely to commercialise its greenfield plant for electrolyte using MUIS technology at its Pakhajan Dahej PCPIR plant.
The management expects mechanical completion to be achieved by the end of this year, after which trial production will begin, followed by commercial production during the first half of FY27.
Production of electrolyte salt is planned for the second half of FY27, aligning with the anticipated launch of ACC battery capacities in India and the increasing global demand for the salt outside of FEOC markets.
The extended timeline for the electrolyte salt production is due to the need for comprehensive homologation of the technology provided by its joint venture partner from Japan, which requires additional time.
This momentum is underpinned by recent critical approvals. A leading Indian giga-scale customer has successfully completed the stringent Production Part Approval Process, also called PPAP, and approved Neogen’s Dahej plant for long-term commercial electrolyte supply.
Furthermore, the company’s quality systems have received provisional approval for lithium electrolyte salt from key international customer with final approval anticipated in Q4 FY26.
The company is also working with other international clients who have already approved the electrolyte salt samples and final approvals are underway expected in Q4 FY26 or Q1 FY27.
In the past five trading sessions, Neogen Chemical shares have moved higher from ₹1,081 to ₹1,157.3.
The stock touched its 52-week high of ₹2,265.15 on 31 December 2024 and a 52-week low of ₹978 on 9 December 2025.
#2 Clean Science and Technology
Clean Science and Technology is a fine and speciality chemical manufacturing company incorporated in 2003.
It’s among the few global firms focused on developing ingenious technologies with unique, innovative, sustainable and cost-effective catalytic manufacturing processes.
Globally, it’s among the largest manufacturers of certain chemicals developed in-house.
The stock of Clean Science and Technology is down 45% from its 52-week high.
On the financial front, the company reported Q2 FY26 numbers that saw marginal increase in revenues, while net profits dropped.
For Q2 FY26, the revenue was ₹244.6 crore vs ₹238.1 crore YoY. The company’s net profit was ₹55.4 crore vs ₹58.7 crore YoY.
The management attributed the subdued performance to several factors.
First, some customers experienced a significant drop in the prices of their end products due to heightened competition from Chinese suppliers. Consequently, these customers chose to reduce their procurement activity.
Second, for other customers, uncertainty surrounding demand in their respective end markets led them to either delay or scale back their purchasing plans.
Moving ahead, Clean Science and Technology invested roughly ₹1,500 m during the first half of the year in CFCL, its subsidiary. The Performance Chemical 1 is undergoing chemical trials, and the results have been satisfactory.
The company has also successfully commercialised barbituric acid by repurposing one of its existing facilities. It has also expanded the capacities of some of its food-grade antioxidants during the quarter.
In the past five trading sessions, Clean Science and Technology’s shares have moved marginally lower from ₹900 to ₹880.
The stock touched its 52-week high of ₹1,599 on 30 May 2025 and a 52-week low of ₹873.55 on 18 December 2025.
#3 Balaji Amines
Balaji Amines specialises in manufacturing methylamines, ethylamines, derivatives of specialty chemicals and pharma excipients.
The company also has facilities for the manufacture of derivatives, which are down-stream products for various pharma/pesticide industries apart from user specific requirements.
The stock of Balaji Amines is down almost 43% from its 52-week highs.
For Q2 FY26, the net sales of Balaji Amines were ₹340.6 crore vs ₹346.9 crore YoY. The company’s net profit stood at ₹37.1 crore vs ₹41.5 crore YoY.
According to the management, the quarter witnessed a mixed operating environment characterised by steady commodity prices and moderated demand in select pharma and agri-chem segments.
Despite external challenges, the company maintained margins and volumes at levels comparable to last year.
Looking ahead, the management anticipates a gradual improvement in operating performance over the coming quarters as new capacities move closer to commissioning at the DME plant (Unit 4) and N-Methyl Morpholine projects.
These are advancing well and are expected to be commissioned during FY26. On the other hand, the acetonitrile expansion based on an improved process is on track for commissioning in FY27. All ongoing projects are being funded through internal accruals.
The company’s subsidiary, Balaji Specialty Chemicals is also making steady progress on its ₹750 crore expansion plan. The expansion encompasses a wide range of specialty products, including hydrogen cyanide, and sodium cyanide, among others.
On the financial front, the company says that while FY26 commenced at a steady pace, the second half is anticipated to gain gradual momentum as new capacities come onstream and demand from key end markets improves.
Balaji Amines’ ongoing investments in R&D, cost optimisation, and green chemistry initiatives continue to strengthen its position as one of India’s leading specialty chemical manufacturers.
In the past five trading sessions, Balaji Amines’ shares have moved marginally higher from ₹1,105 to ₹1,122.15.
The stock touched its 52-week high of ₹1,980 on 9 January 2025 and a 52-week low of ₹1,079.15 on 9 December 2025.
#4 Sudarshan Chemical Industries
The company is a global leader in pigment manufacturing, forged through the integration of Sudarshan Chemical Industries and Germany’s Heubach Group, which had earlier acquired Clariant’s global pigment business in 2022.
Sudarshan Chemical Industries acquired the Germany-based Heubach Group in March 2025 through a combination of asset and share deals, creating a global pigment leader.
Following the acquisition, the combined entity’s portfolio encompasses coatings, plastics, inks, and the automotive sector, with a strong presence in Europe and the US.
The shares of Sudarshan Chemical Industries have fallen 41% from 52-week highs.
For Q2 FY26 , the sales were ₹2387.4 crore vs ₹696.1 crore YoY. However, net profits fell to ₹10 crore from ₹29.9 crore YoY.
The quarterly performance was modest, which the management attributed to weak demand.
According to the management, a decline in demand was noticed across most pigment end uses. Given that Sudarshan Chemical’s business operates on a global scale, key economies like Europe, the US, and Latin America significantly influence its financial performance.
The reduced demand has been particularly noticeable in coatings and plastics, impacted by extremely high interest rates. These rates have contributed to decreased household spending and reduced demand in sectors such as paints and the automotive industry.
The management anticipates a subdued performance in the third quarter. However, they predict an uptick in product demand starting from the fourth quarter. Over the long term of 3-43-4 years, the company's outlook remains unchanged.
In the past five trading sessions, Sudarshan Chemical Industries’ shares have moved marginally lower from ₹945 to ₹941.25.
The stock touched its 52-week high of ₹1,604 on 24 September 2025 and a 52-week low of ₹795.75 on 3 December 2025.
Should you consider chemical stocks?
Chemical stocks have fallen due to Chinese dumping, the global demand slowdown, rising input costs, and tepid quarterly results. In some cases, the fall has been due to company specific reasons.
Investing in Indian chemical stocks after their recent decline requires evaluating sector recovery signals against persistent headwinds like overcapacity and weak demand.
Investors should proceed cautiously, despite the potential value that some might possess. It’s crucial to carry out thorough and independent research.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy Investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
topics
