The profit margin is the amount of money that remains after deducting all expenses. It is a percentage that demonstrates how successful a company’s pricing strategy is, how well it can control expenditures, and how efficiently it uses raw materials to manufacture products or services. 

The Net Profit margin is the amount of profit earned by a company as a percentage of total sales. 

Here are three Small-Cap chemical stocks with Net Profit Margins up to 42% 

Clean Science & Technology Ltd 

Clean Science & Technology shares were trading at Rs 1,473.95 per share on Friday, up 0.20 percent from the previous close price of Rs 1,486.90. The company has a market capitalization of Rs 15,655 crores. 

During FY 22-23, the company recorded a healthy net profit margin of 32.43 percent and an operating margin of 43.34 percent. 

The company’s revenue has declined by 19 percent year on year, from Rs 234 crore in Q1FY23 to Rs 188 crore in Q1FY24. During the same period, Net profit decreased by 17 percent from Rs 70 crore to Rs 58 crore. 

Clean Science and Technology Ltd. is engaged in the manufacturing of pharmaceutical Intermediates, FMCG Chemicals, and specialty chemicals. 

Archean Chemical Industries Ltd 

On Tuesday, the shares of Archean Chemical Industries were trading at Rs 630.50 a share, up 1.01 percent from the previous close price of Rs 638. The company has a market capitalization of Rs 7,759 crores. 

In the recent financial year, the company recorded a net profit margin of 26.62 percent and an operating margin of 42.33 percent. 

Archean Chemical Industries shares have delivered returns of 20 percent on a year-to-date basis and 38 percent in a year.

The company’s revenue has declined by 7 percent year on year, from Rs 372 crore in Q1FY23 to Rs 343 crore in Q1FY24. During the same period, Net profit increased by 16 percent from Rs 81 crore to Rs 94 crore. 

Archean Chemical Industries Limited is India’s largest bromine and industrial salt exporter. The firm is India’s foremost specialty marine chemical manufacturer, producing and exporting bromine, industrial salt, and potash sulfate to clients all over the world. 

Kilpest India Ltd 

Kilpest India Ltd shares were trading at Rs 820.50 per share on Friday, up 5.02 percent from the previous close price of Rs 781.25. The company has a market capitalization of Rs 615 crores. 

The company has reported an excellent net profit margin of 42 percent and an operating margin of 57.42 percent in a recent financial year. 

The company’s revenue has increased by 27 percent year on year, from Rs 11 crore in Q1FY23 to Rs 14 crore in Q1FY24. During the same period, Net profit jumped by 75 percent from Rs 4 crore to Rs 7 crore. 

The company’s share has delivered a multibagger return of about 123 percent in the last year, and 101 percent in the last six months. 

Kilpest is a prominent Agri-based company in India, producing pesticides, microfertilizers, biofertilizers, and biopesticides. The company exports its goods to Bangladesh and Afghanistan. 

Written by Omkar Chitnis

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