In the modern era of investing, volatility and uncertainty have become key aspects of the process. However, using suitable investment techniques like diversification can help control risks and returns in the long term. In diversification, investors explore varied asset classes or sectors for their portfolios.
One such unique yet crucial sector is dyes and pigments. This industry caters to other important sectors like textile, coating, plastics, etc. The Indian dyes and pigments industry is expected to reach US$ 97.64 Billion in 2032. It will be 48.6% higher than its size in 2023.
Indian investors can capitalise on this potential growth rally by exploring these top 5 dyes and pigments stocks in India.
Dive deeper: Long-term investing: A smart strategy for lasting wealth
Top 5 Dyes and Pigments Stocks in India
These top 5 companies are listed based on their market capitalisation as of April 10, 2025.
| Particulars | Market Capitalisation (in ₹ crores) | Return on Equity | P/E Ratio |
| Sudarshan Chemical Industries Ltd. | 7,550.85 | 11.3% | 52.95 |
| Kiri Industries Ltd. | 3,183.92 | 4.84% | 9.77 |
| Vidhi Speciality Food Ingredients Ltd. | 2,049.49 | 13.76% | 48.61 |
| Heubach Colourants India Ltd. | 1,354.56 | 9.09% | 29.04 |
| Ultramarine & Pigments Ltd. | 1,265.53 | 6.08% | 19.77 |
Let’s explore these dyes and pigments stocks in detail through their specialities, financials and stock dynamics.
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It is the largest pigment producer company in India and exports its products to 80+ countries globally. It specialises in coating, printing and plastics. Established in 1952, the company has scaled to become the 3rd largest global pigment producer in FY 2024. Its financials are as follows:
| Particulars | FY 2024 | FY 2023 | Change (%) |
| Revenue from operations (in ₹ crores) | 2508.77 | 2301.73 | 8.99 |
| Net profit (in ₹ crores) | 357.44 | 44.76 | 698.57 |
| Operating profit margin | 12.5% | 9.2% | 35.86 |
| Debt-to-equity ratio (in times) | 0.3 | 1.0 | (0.7) |
The financial strength of the company is evident in robust margins over the years. The negative debt-equity ratio indicates better debt management. Moreover, it successfully surpassed pre-covid profit levels of ₹145 crores in FY 2024.
Share price of Sudarshan Chemicals has surged by nearly 45% in a year, as of April 9, 2025. Its healthy growth in Earnings Per Share (EPS) indicates positive prospects for the company.
- Kiri Industries Ltd.
The company is popular for its dye manufacturing, intermediate dye products and other basic chemicals like sulphuric acid and thionyl chloride. The company was established in 1998 and is based in Gujarat. Its financials are as follows:
| Particulars | FY 2024 | FY 2023 | Change (%) |
| Revenue from operations (in ₹ crores) | 949.21 | 945.06 | 0.43 |
| Net profit (in ₹ crores) | 133.02 | 106.64 | 28.34 |
| Operating profit margin | 1.29% | 3.96% | (67.42) |
| Debt-to-equity ratio (in times) | 0.01 | (0.02) | 150.00 |
The company’s financials suffered a setback in FY 2023. However, it is gradually improving its operational efficiency and financial performance.
The share price of this dye stock was trading at ₹572 as of April 9, 2025. Its EPS is improving, and the stock P/E ratio is below the industry median of 25.48.
- Vidhi Speciality Food Ingredients Ltd.
As the name suggests, the company specialises in the manufacturing of food colours. It is the 2nd largest food colour manufacturer in Asia. Its financials are as follows:
| Particulars | FY 2024 | FY 2023 | Change (%) |
| Revenue from operations (in ₹ crores) | 303.41 | 403.99 | (24.89) |
| Net profit (in ₹ crores) | 36.44 | 37.70 | (3.34) |
| Operating profit margin | 19.70% | 14.37% | 37.09 |
| Debt-to-equity ratio (in times) | 0.16 | 0.32 | (50.00) |
The global food colour is expected to grow at 4.7% CAGR from 2021 to 2026. The company’s financials are on a declining trend for FY 2023 and FY 2022. However, in this period, the company added capacity through different investments.
The share price of this company has declined by 10.9% in a year as of April 9, 2025. However, based on the quarterly performance, its EPS is expected to recover in FY 2025.
- Heubach Colourants India Ltd.
The company caters to a wide range of industries, such as automotive, paints, printing, home care, agriculture, etc. The headquarters of Heubach Colourants is located in Navi Mumbai. Its financials are as follows:
| Particulars | FY 2024 | FY 2023 | Change (%) |
| Revenue from operations (in ₹ crores) | 790.70 | 766.41 | 3.16 |
| Net profit (in ₹ crores) | 41.13 | 19.17 | 114.55 |
| Operating profit margin | 9.10% | 8.00% | 13.75 |
The company has no borrowing, which can be a positive sign for prospective investors. Moreover, except for FY 2022 and FY 2023, the company’s financials have been in an uptrend for most years.
As of April 9, 2025, the share price of Heubatch has surged by nearly 21% in a year’s timeframe.
- Ultramarine & Pigments Ltd.
With a span across 49 countries excluding India, the company has specialised in manufacturing detergents, inorganic pigments and cosmetic-grad surfactants. It has manufacturing facilities in Tamil Nadu and Andhra Pradesh. Its financials are as follows:
| Particulars | FY 2024 | FY 2023 | Change (%) |
| Revenue from operations (in ₹ crores) | 560.64 | 556.60 | 0.72 |
| Net profit (in ₹ crores) | 57.59 | 69.19 | (16.76) |
| Operating profit margin | 15.64% | 15.28% | 2.35 |
| Debt-to-equity ratio (in times) | 0.10 | 0.12 | (16.67) |
The company’s financials have been fluctuating, and they declined in FY 2024. As of April 9, 2025, the company’s share price has increased by 8.3% in a year. However, its P/E ratio is below the median of 25.48
Bottomline
The dyes and pigments stocks can provide a unique exposure to the portfolio. However, investors should analyse their investment objectives, risk profile and desired exposure to seek the suitability of these stocks. Explore this list of the top 5 stocks to simplify the investment decision.
Also, explore: Best Chemical Stocks to Invest in India for 2025
FAQs
- Which companies are considered under the dye and pigment industry?
The entities involved in the direct manufacturing and distribution of these chemicals are considered under the dyes and pigment industries. These companies cater mainly to the sectors like textile, automotive, plastic, coatings, etc.
- What is the debt-to-equity ratio?
The debt-to-asset ratio will indicate the level of borrowing compared to equity in the company. The higher this ratio, the higher the debt levels compared to equity. It may raise concerns about the debt management attitude of the company.
- What are valuation metrics?
The tools and techniques analysing a company’s inherent value or projected growth are known as valuation metrics. Some of the most common ways to derive valuations are price-to-earnings ratio, discounted cash flow, enterprise value, etc. It helps determine the undervalued or overvalued investment opportunities.
- How to analyse long-term investments?
One of the most effective ways to analyse long-term investment is through fundamental analysis. Here, investors analyse financial performance, valuation metrics, industry growth prospects, etc. Such analysis can help determine undervalued opportunities and unleash future growth.
- What is the future of the dye and pigment industry?
The global dyes and pigment industry is projected to grow 5.1% CAGR by FY 2032. Its products are crucial raw materials for textiles, printing, plastics, etc. Therefore, along with the demand surge in these industries, dyes and pigment products will grow at a steady pace.
