Top 5 stocks to watch out for high capex driven growth

livemint.com:

capital expenditure or capex as popularly known. Capex is crucial for companies' growth as it signifies investment in their future. With that in mind, let’s look at the companies that spent the most in capex in FY23 and are also investing heavily for the years to come.

First on the list is Clean Science and Technology, a leading chemical manufacturing company. Incorporated in 2003, the company's operations are primarily focused on manufacturing critical speciality chemicals. The company has three manufacturing facilities consisting of 16 plants with a total capacity of 44 thousand million tonnes per annum (MTPA).

During the year, the company invested ₹1.9 billion (bn) in capex, the highest since its inception, primarily to expand its manufacturing capacity by 2,000 MTPA in one of its plants. It also set up production lines for two of its newly launched products in the existing manufacturing facility. The company also developed new products by blending its existing products for different industrial applications.

In the last three years, Clean Science and Technology has spent around ₹4 bn in capex primarily to expand its manufacturing capabilities, enhance the yield, and for research and development (R&D) to develop new products. In financial year 2024 so far, the company already incurred a capex of ₹900 million (m) for building manufacturing facilities for its new products. It plans to invest a total of ₹3.8 bn in the current financial year for developing and manufacturing hindered amine light stabilisers (HALS) and new performance chemicals.