Treatt (TET) & Elementis (ELM): 2 FTSE chemical stocks to buy now

September 29, 2021 12:24 AM AEST | By Nidhi Gupta

Treatt (TET) & Elementis (ELM): 2 FTSE chemical stocks to buy now — Image source: VideoFlow, Shutterstock.com

Treatt Plc (LON: TET)

Treatt is a manufacturer and supplier of components and speciality chemicals to beverage, flavour, fragrance, as well as consumer products companies. In February 2021, it collaborated with Siemens for the construction of a digital factory at Suffolk.

The shares of Treatt currently trade at GBX 1,010.00, up by 4.99% at 12:33 PM BST on 28 September 2021.

Treatt’s revenues rose by 13.5% year-on-year to £60.8 million in H1 2021 from £53.6 million in H1 2020. Its profit before tax reached £10.4 million, representing an increase of 71.4% year-on-year from £6.1 million in H1 2020.

Treatt’s board announced an interim dividend of 2.00 pence per share for H1 2021 ended 31 March 2021, an increase of 8.7% from 1.84 pence in H1 2020.

The market cap of Treatt stands at £573.79 million, and it returned 61.03% to shareholders in the last one year, as of 28 September 2021.

Elementis Plc (LON:ELM)

Elementis is a speciality chemicals and personal care company based in the UK. Improved industrial demand and customer restocking drove up the company’s revenues by 17% year-on-year to $452 million compared to $387 million in H1 2020.

Its profit before tax was $40 million in H1 2021, up from $28 million in H1 2020, representing an increase of 41% year-on-year.

The shares of Elementis currently trade at GBX 150.60, down by 2.40% at 12:36 PM BST on 28 September 2021. The market cap of Elementis stands at £897.60 million, and it returned 103.51% to shareholders in the last one year, as of 28 September 2021.

Bottomline

The highly cyclical nature of the chemical industry makes it necessary for investors keen on investing in these stocks to consider stocks of established companies, which have high growth prospects.

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