
Three undervalued chemical stocks to add to your 2026 watchlist
Subscribe to enjoy similar stories. As the markets trade very close to record highs, finding value always becomes a challenge. However, here are three stocks from the chemical sector that continue to remain undervalued using specific criteria.
These stocks have been selected using data from the Equitymaster screener. To identify undervalued options, specific criteria were applied, including a debt-to-equity ratio of 0 and a return on equity of 9% or more and a return on capital employed of more than 12%. It's crucial to remember that valuation is a subjective concept; what one investor considers to be undervalued might not be the same for another.
There could also be various parameters to examine undervaluation. Please note, this editorial is for informational purposes only and is not a stock recommendation or investment advice. Sumitomo Chemical India manufactures, imports and markets products for crop protection, grain fumigation, rodent control, bio pesticides, environmental health, professional pest control, etc.
The company has a presence in Africa and several other geographies around the world. The company is a debt-free company with a strong return on equity of 17.5%. The return on capital employed (RoCE) also remains strong at 23.7%.
On the financial front, Q2FY26, revenue was placed at ₹929.8 crore versus ₹988.3 crore in the corresponding period last year. The net profits of the company were placed at ₹177.8 crore, a drop from ₹192.5 crore year-on-year. During the quarter, Sumitomo Chemical India saw its domestic crop protection business being impacted by wet weather.
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