Returns On Capital Signal Tricky Times Ahead For Fertilisers and Chemicals Travancore (NSE:FACT)
Jan 20
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Indian (NIFTY) Chemicals Industry Analysis
UpdatedFeb 01, 2025
DataAggregated Company Financials
Companies326
- 7D1.6%
- 3M-10.6%
- 1Y4.3%
- YTD-3.3%
Over the last 7 days, the Chemicals industry has dropped 1.4%, driven by a pullback from Fertilisers and Chemicals Travancore of 3.4%. In contrast, SRF has gained 8.8%. As for the longer term, the industry's performance has been flat for the past year. Earnings are forecast to grow by 23% annually.
Industry Valuation and Performance
Has the Indian Chemicals Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 01 Feb 2025 | ₹18.1t | ₹6.5t | ₹373.3b | 28x | 48.4x | 2.8x |
| Mon, 30 Dec 2024 | ₹18.6t | ₹6.4t | ₹367.6b | 31.5x | 50.5x | 2.9x |
| Wed, 27 Nov 2024 | ₹18.9t | ₹6.4t | ₹367.7b | 31.9x | 51.5x | 2.9x |
| Fri, 25 Oct 2024 | ₹19.7t | ₹6.4t | ₹367.3b | 33.5x | 53.7x | 3.1x |
| Sun, 22 Sep 2024 | ₹21.1t | ₹6.4t | ₹369.5b | 36x | 57.2x | 3.3x |
| Tue, 20 Aug 2024 | ₹20.2t | ₹6.4t | ₹368.7b | 34.6x | 54.7x | 3.2x |
| Thu, 18 Jul 2024 | ₹20.2t | ₹6.3t | ₹381.3b | 35.2x | 52.9x | 3.2x |
| Sat, 15 Jun 2024 | ₹19.0t | ₹6.4t | ₹382.5b | 33.4x | 49.7x | 3x |
| Mon, 13 May 2024 | ₹17.4t | ₹6.4t | ₹383.9b | 29.7x | 45.4x | 2.7x |
| Wed, 10 Apr 2024 | ₹17.5t | ₹6.5t | ₹410.6b | 30.2x | 42.6x | 2.7x |
| Fri, 08 Mar 2024 | ₹16.9t | ₹6.5t | ₹411.0b | 29.8x | 41.2x | 2.6x |
| Sun, 04 Feb 2024 | ₹17.2t | ₹6.7t | ₹458.4b | 30.8x | 37.5x | 2.6x |
| Tue, 02 Jan 2024 | ₹18.1t | ₹6.8t | ₹485.5b | 29.9x | 37.3x | 2.7x |
| Thu, 30 Nov 2023 | ₹16.8t | ₹6.7t | ₹483.9b | 27.9x | 34.6x | 2.5x |
| Sat, 28 Oct 2023 | ₹15.7t | ₹6.9t | ₹518.5b | 26.8x | 30.3x | 2.3x |
| Mon, 25 Sep 2023 | ₹16.7t | ₹6.9t | ₹513.5b | 27x | 32.5x | 2.4x |
| Wed, 23 Aug 2023 | ₹16.1t | ₹6.9t | ₹514.5b | 25.7x | 31.3x | 2.3x |
| Fri, 21 Jul 2023 | ₹16.2t | ₹7.1t | ₹562.4b | 22.3x | 28.7x | 2.3x |
| Sun, 18 Jun 2023 | ₹16.0t | ₹7.1t | ₹561.2b | 22.5x | 28.5x | 2.3x |
| Tue, 16 May 2023 | ₹15.4t | ₹7.1t | ₹615.8b | 20.3x | 25x | 2.2x |
| Thu, 13 Apr 2023 | ₹14.6t | ₹7.0t | ₹616.0b | 20x | 23.7x | 2.1x |
| Sat, 11 Mar 2023 | ₹14.5t | ₹7.0t | ₹614.1b | 19.6x | 23.6x | 2.1x |
| Mon, 06 Feb 2023 | ₹14.3t | ₹6.8t | ₹614.9b | 19.7x | 23.3x | 2.1x |
| Wed, 04 Jan 2023 | ₹15.4t | ₹6.7t | ₹618.2b | 20.2x | 25x | 2.3x |
| Fri, 02 Dec 2022 | ₹15.8t | ₹6.6t | ₹613.5b | 19.6x | 25.8x | 2.4x |
| Sun, 30 Oct 2022 | ₹15.5t | ₹6.2t | ₹600.5b | 19.1x | 25.9x | 2.5x |
| Tue, 27 Sep 2022 | ₹16.0t | ₹6.2t | ₹595.6b | 19.2x | 26.8x | 2.6x |
| Thu, 25 Aug 2022 | ₹16.1t | ₹6.2t | ₹595.4b | 18.4x | 27.1x | 2.6x |
| Sat, 23 Jul 2022 | ₹14.9t | ₹5.6t | ₹536.3b | 18.3x | 27.8x | 2.6x |
| Mon, 20 Jun 2022 | ₹13.4t | ₹5.6t | ₹536.2b | 16.5x | 24.9x | 2.4x |
| Wed, 18 May 2022 | ₹14.6t | ₹5.3t | ₹504.8b | 18x | 29x | 2.7x |
| Fri, 15 Apr 2022 | ₹15.7t | ₹5.1t | ₹484.9b | 20x | 32.5x | 3.1x |
| Sun, 13 Mar 2022 | ₹14.5t | ₹5.1t | ₹481.8b | 17.8x | 30x | 2.8x |
| Tue, 08 Feb 2022 | ₹15.5t | ₹4.9t | ₹485.4b | 20.3x | 31.9x | 3.1x |
Price to Earnings Ratio
31.9x
Current Industry PE
- Investors are optimistic on the Indian Chemicals industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 47.8x which is higher than its 3-year average PE of 35.6x.
- The industry is trading close to its 3-year average PS ratio of 2.6x.
Past Earnings Growth
- The earnings for companies in the Chemicals industry have declined 7.8% per year over the last three years.
- Meanwhile revenues for these companies have grown 9.8% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Indian Materials industry?
| IN Market | 0.93% | |
| Materials | 0.24% | |
| Chemicals | 1.62% | |
| Industrial Gases | 7.10% | |
| Diversified Chemicals | 2.23% | |
| Commodity Chemicals | 1.74% | |
| Specialty Chemicals | 1.19% | |
| Fertilizers and Agricultural Chemicals | 0.92% | |
Industry PE
- Investors are most optimistic about the Industrial Gases industry, which is trading close to its 3-year average PE ratio of 106x.
- Analysts are expecting annual earnings growth of 34.8%, which is lower than the prior year's growth of 58.9% per year.
- Investors are most pessimistic about the Commodity Chemicals industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 28.7x.
Forecasted Growth
- Analysts are most optimistic on the Industrial Gases industry, expecting annual earnings growth of 35% over the next 5 years.
- However this is lower than its past earnings growth rate of 59% per year.
- In contrast, the Specialty Chemicals industry is expected to see its earnings grow by 19% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 503806 SRF | ₹2.81k | 8.8% +₹67.3b | 21.2% | PE72.6x | |
| SOLARINDS Solar Industries India | ₹10.19k | 7.6% +₹64.8b | 58.0% | PE91.3x | |
| 512070 UPL | ₹603.30 | 9.4% +₹43.7b | 13.1% | PS1.2x | |
| 523457 Linde India | ₹6.28k | 7.6% +₹37.9b | 13.1% | PE120.2x | |
| ASIANPAINT Asian Paints | ₹2.30k | 1.7% +₹36.8b | -21.6% | PE48.3x |
