Bodal Chemicals Limited is one of India's leading integrated Dyestuff companies and is the largest domestic manufacturer of Dye Intermediates. It offers a wide range of Dyestuffs, Dye Intermediates, Basic Chemicals, and its variants to diverse customers across India and the world. The company stands as a market leader in the chemicals industry, particularly in the dyestuff and dye intermediates sector.
The Company is promoted by Sureshbhai J. Patel, and its commercial production commenced in the year 1986. At present, the Company has 9 manufacturing units in Gujarat: 4 in Ahmedabad, 3 in Vadodara, and 2 in Ankleshwar, where products for textiles, paper, plastic, leather, and many other specialty chemicals are produced.
Bodal Chemicals boasts a diversified product portfolio of over 200 products across multiple chemical segments. This includes:
- Basic Chemicals: 12 products
- Dye Intermediates: 25 products
- Dyestuffs: 175 products
- Chlor Alkali: 6 products
- New Product Addition: Benzene Derivatives (5 products)
The Company, through its subsidiaries, is engaged in manufacturing dyestuffs, dyes intermediates, and other chemicals used in the textile, leather, and paper industry. This diverse application base provides stability and growth opportunities across multiple end-user industries. The company is also a major global manufacturer and exporter of dyes intermediates, dyestuffs, and sulfuric acid, positioning it well for international market opportunities.
Bodal Chemicals currently has a market capitalization of ₹948 Crore (as of recent data, March 2025), having seen a -4.39% change in the last year. The company's stock trades on both NSE and BSE under the symbol BODALCHEM.
For March 2025, Bodal Chemicals reported strong consolidated financial results:
- Consolidated Net Sales: Rs 450.87 crore (14.56% increase year-on-year)
- Consolidated Net Profit: Rs 14.50 crore (surged 610.63% year-on-year)
- Consolidated EBITDA: Rs 49.60 crore (rose 62.36%)
- EPS: Rs 1.15 (increased from Rs 0.16)
On a standalone basis for March 2025:
- Standalone Net Sales: Rs 445.53 crore (up 12.64% YoY)
- Standalone Net Profit: Rs 10.58 crore (surged 115.5%)
- Standalone EBITDA: Rs 51.75 crore (rose 31.25%)
The company's Q4 FY25 performance was notably strong, showing robust growth across key metrics, with 24% revenue growth and 43% EBITDA growth, partly aided by anti-dumping duty on TCCA.
- Stock P/E: 48.5
- ROE (Return on Equity): 1.80%
- ROCE (Return on Capital Employed): 5.10%
- Dividend Yield: 0.00%
- Revenue Growth: Revenue has been consistently up for the last 7 quarters, from ₹335.93 Cr to ₹453.22 Cr, with an average increase of 4.8% per quarter.
- Net Profit Growth: Net profit has been trending positively for the last 4 quarters, from -₹1.18 Cr to ₹14.5 Cr, with an average increase of 186.2% per quarter, indicating strong operational improvements and profitability recovery.
The company has significantly expanded its manufacturing capabilities over the years.
- Dyestuff Plant Expansion: The company commissioned a Dyestuff Plant expansion by 12,000 Metric Tons Per Annum (MTPA), which increased the total capacity of Dyestuff plants to 29,000 MTPA.
- Thionyl Chloride (TC) Plant: A production facility for Thionyl Chloride (TC) Plant with a capacity of 36,000 MTPA was commissioned in FY 2018-19.
Promoter Holding: 57.3% indicates strong promoter commitment to the company's growth prospects.
Bodal Chemicals holds a unique market position as the sole Indian producer of TCCA 90, with a 12,000 MT per year production capacity at its Khambhat, Gujarat facility. This position has been further strengthened by recent trade protection measures. The Ministry of Finance, based on a recommendation from the Directorate General of Trade Remedies (DGTR), has implemented anti-dumping duties ranging from USD 766-986 per metric ton (MT) for Chinese producers and USD 276/MT for Japanese producers. These duties, effective for five years starting 7 March 2025, aim to protect domestic manufacturers from material injury caused by below-normal-value imports.
While the company shows strong recent performance, there are historical challenges:
- Sales Growth: The company has delivered a poor sales growth of 4.88% over the past five years.
- Return on Equity: Company has a low return on equity of 2.14% over the last 3 years.
However, management has been actively working to improve these areas. The company's strategic focus on expanding manufacturing capabilities, diversifying product portfolio, and benefiting from trade protection measures positions it favorably for future growth in the chemicals sector.
