India's once-booming chemical sector is navigating a period of significant correction, with several prominent stocks trading substantially lower from their recent peaks. A combination of global headwinds and company-specific challenges has led to a notable decline in share prices across the industry.
What's Weighing on Chemical Stocks?
The downturn is attributed to a confluence of factors impacting the diverse sector. Aggressive Chinese dumping of cheaper products has intensified competition and squeezed profit margins for many Indian manufacturers. This is compounded by a global demand slowdown, particularly affecting segments like agrochemicals where inventory destocking and postponed purchases are prevalent.
Furthermore, rising input costs and lingering supply chain disruptions continue to pressure profitability. The recent quarterly results for many firms have been tepid, reflecting these operational challenges. While broader trends affect the sector, individual company performances also hinge on specific issues such as plant incidents or integration challenges post-acquisition.
Four Major Stocks Trading Far From Highs
Here is a closer look at four significant chemical stocks that have witnessed a steep fall from their respective 52-week highs, based on recent market data and company disclosures.
Neogen Chemicals: Down 49%
Neogen Chemicals Ltd., a leader in bromine and lithium-based specialty chemicals, has seen its stock plummet nearly 49% from its 52-week high of ₹2,265.15 reached on 31 December 2024. A major setback was a fire at its Dahej plant in March 2025, which led to increased costs like a sharp rise in insurance premiums.
For Q2 FY26, while revenue grew to ₹208 crore from ₹193 crore year-on-year, net profit sharply declined to ₹3.3 crore from ₹10.9 crore. The company is now focusing on future growth drivers, including the commercialisation of its electrolyte plant using MUIS technology at Dahej, with production expected in the first half of FY27. It has also secured a critical long-term supply approval from a leading Indian giga-scale customer.
Clean Science and Technology: Down 45%
Clean Science and Technology Ltd., known for its innovative and sustainable catalytic processes, is trading 45% below its 52-week high of ₹1,599 (30 May 2025). Its Q2 FY26 performance was subdued, with revenue at ₹244.6 crore (vs ₹238.1 crore YoY) and net profit falling to ₹55.4 crore (vs ₹58.7 crore YoY).
The management cited intense competition from Chinese suppliers, which forced customers to cut procurement, and demand uncertainty leading to delayed purchases. The company continues to invest in its subsidiary and has successfully commercialised products like barbituric acid while expanding antioxidant capacities.
Balaji Amines: Down 43%
Balaji Amines Ltd., a specialist in methylamines, ethylamines, and derivatives, is down almost 43% from its high of ₹1,980 on 9 January 2025. Its Q2 FY26 net sales were marginally lower at ₹340.6 crore, with profit at ₹37.1 crore.
The company faced moderated demand in certain pharma and agrochemical segments but maintained stable margins. Its growth strategy hinges on commissioning new capacities, including the DME plant and N-Methyl Morpholine projects in FY26, and an acetonitrile expansion in FY27. Its subsidiary, Balaji Specialty Chemicals, is also progressing on a ₹750 crore expansion plan.
Sudarshan Chemical Industries: Down 41%
Sudarshan Chemical Industries Ltd., now a global pigment leader after acquiring Germany's Heubach Group in March 2025, has seen shares fall 41% from their peak. The Q2 FY26 sales surged to ₹2,387.4 crore post-acquisition (from ₹696.1 crore YoY), but net profit fell sharply to ₹10 crore.
The management blamed weak global demand, especially in coatings and plastics, driven by high interest rates affecting consumer spending in key markets like Europe and the US. While Q3 FY26 is expected to remain subdued, a demand pickup is anticipated from the fourth quarter.
Should Investors Consider the Sector Now?
The recent correction presents a scenario where potential value meets persistent risk. While stock prices have fallen considerably, creating possible entry points, the sector's headwinds remain real. Chinese overcapacity, fluctuating demand, and input cost volatility are not issues that will vanish overnight.
Investors must exercise caution and conduct thorough due diligence. Evaluating a company's fundamentals, its specific growth triggers (like new plant commissioning or client approvals), corporate governance, and current valuations is paramount. The sector's long-term story in India remains intact, but navigating the short-term turbulence requires a selective and research-driven approach.
Disclaimer: This information is for educational purposes only. It is not a recommendation to buy or sell any securities. Readers are advised to consult with a qualified financial advisor before making any investment decisions.
