7 months ago
Two Chemical Stocks with High ROCE and No Debt
Two chemical companies in India, Supreme Petrochem and Tanfac Industries, are doing really well.
They make a lot of money compared to how much they spend (high ROCE) and they don't have much debt.
Supreme Petrochem makes things like polystyrene and has a big share of the market.
Tanfac Industries makes chemicals with fluorine and has a new big contract.
Both companies have grown a lot in the last five years, but their stock prices have gone down a bit recently.
Investors might want to look at these companies because they seem strong and stable.
Supreme Petrochem has a 50% market share in polystyrene and XPS boards in India.
Supreme Petrochem's 5-year average ROCE is 44%, significantly higher than the industry median of 21%.
Supreme Petrochem has a debt-to-equity ratio of 0.06, indicating it is virtually debt-free.
Tanfac Industries is India's largest supplier of fluorine chemicals with a 5-year average ROCE of 45%.
Tanfac Industries has a debt-to-equity ratio of 0.09 and has secured a 7-year supply contract with a Japanese client.
- Who
- Supreme Petrochem Limited and Tanfac Industries Ltd
- What
- Two chemical companies with high ROCE and low debt
- Where
- India
- When
- Financial data from FY20 to FY26
- Why
- To highlight companies with strong financial health and growth potential
Key facts
- Supreme Petrochem Market Cap
- Rs 9,885 cr
- Supreme Petrochem 5-Year ROCE
- 44%
- Supreme Petrochem Debt-to-Equity Ratio
- 0.06
- Tanfac Industries Market Cap
- Rs 3,850 cr
- Tanfac Industries 5-Year ROCE
- 45%
- Tanfac Industries Debt-to-Equity Ratio
- 0.09
- Supreme Petrochem Share Price (Jan 2021)
- Rs 180
- Supreme Petrochem Share Price (Jan 2026)
- Rs 525
- Tanfac Industries Share Price (Jan 2021)
- Rs 185
- Tanfac Industries Share Price (Jan 2026)
- Rs 3,860
Quotes
Rakesh Nayyar
Chief Financial Officer of Supreme Petrochem
“The volumes and margins were impacted due to extended monsoon leading to lower demand for cooling devices such as air conditioners and refrigerators, deferment of purchases due to advance intimation of GST rate reduction, subdued economic activity across major economies, and change in trade flows due to trade barriers.”
financialexpress.com
“The 3rd Quarter starts picking up only towards the end of November or December. We should be able to recover.”
financialexpress.com
