6 Stocks in Underrated Business Segments You Probably Did Not Know About

Synopsis: These companies operate in specialised niches, including metal recycling, aroma chemicals, medical-grade plastics, defence explosives, bimetal components and water treatment engineering. Their focused business models create entry barriers and structural advantages, differentiating them from commodity players and positioning them to benefit from sustainability, technology, and infrastructure-driven growth.

Beyond headline sectors, several Indian companies operate in highly specialised niches that often go unnoticed. From recycling and fragrance chemicals to precision plastics, explosives, advanced metallurgy and water treatment, these businesses cater to focused, high-entry-barrier segments. Companies such as Gravita India Limited and Solar Industries India Limited demonstrate how niche positioning can create strong competitive advantages and long-term growth visibility.

Gravita India Ltd

Gravita India Ltd is one of the largest lead producers in India. The company’s business is organised across four specialised verticals: lead recycling (flagship), aluminium recycling, plastic recycling and turnkey projects and the company also has expertise in the recycling of used batteries, cable scrap/other Lead scrap, Aluminum scrap, Plastic scrap, etc. With the market cap of Rs 12,182 crore, the shares of Gravita India Ltd have closed at Rs 1,651 and are trading at a PE of 31.9, whereas its industry PE is at 18.1. 

Gravita operates within a niche segment of integrated metal recycling, which mainly comprises lead recycling – the flagship business. The company specialises in converting used batteries and scrap into refined lead, aluminium, and plastic products, unlike primary metal producers. That places the company in the circular economy space, with the advantage of sustainability trends and increasing environmental regulations. Its expertise in battery recycling and turnkey recycling solutions creates entry barriers, making it different from a commodity metal processor.

Privi Speciality Chemicals Ltd

Privi Speciality Chemicals Ltd is primarily engaged in the manufacturing, supply and export of aroma and fragrance chemicals used in soaps, detergents, shampoos and other fine fragrances. With the market cap of Rs 10,598 crore, the shares of Privi Speciality Chemicals Ltd  have closed at Rs 2,713 and are trading at a PE of 35.2, whereas its industry PE is at 27.8. 

Privi operates in the speciality niche of aroma and fragrance chemicals, servicing global FMCG and fine fragrance players. These are not bulk chemicals but rather value-added molecules used in soaps, detergents, perfumes, and personal care products. The business requires strong R&D capabilities, long customer validation cycles, and a consistent standard of quality. This makes it a high-entry-barrier speciality chemical segment rather than a commoditised chemical business.

Shaily Engineering Plastics Ltd

The company is engaged in the manufacture and sale of injection-moulded precision plastic components and sub-assemblies for various requirements of Original Equipment Manufacturers (OEM) and also offers secondary operations in plastics like vacuum metalising, hot stamping, and ultrasonic welding. With the market cap of Rs 9,244 crore, the shares of Shaily Engineering Plastics Ltd have closed at Rs 2,012 and are trading at a PE of 65, whereas its industry PE is at 22.7. 

Shaily specialises in precision injection-moulded plastic parts, especially for the regulated industry sector, such as the medical device industry. They offer high-accuracy parts for drug delivery systems and the OEM industry, where design capability is a primary concern, which sets the industry aside from the low-margin generic plastic parts industry.

Solar Industries India Ltd

Solar Industries is one of the largest domestic manufacturers of bulk and cartridge explosives, detonators, detonating cords and components, which find applications in the mining, infrastructure and construction industries. The company manufactures high-energy explosives, delivery systems, ammunition filling and pyro fuses for the defence sector. With the market cap of Rs 1,17,185 crore, the shares of Solar Industries India Ltd  have closed at Rs 12,950 and are trading at a PE of 80.7, whereas its industry PE is at 23. 

Solar Industries primarily deals in the niche market of industrial explosives and defence-grade ammunition systems. Their major market for industrial explosives includes the mining sector, but the firm has expanded its business to cover other areas like high-energy explosives, ammunition fillings, and the defence sector. The defence vertical elevates the business to a strategic level beyond the typical infrastructure-based markets, placing the business in a specialised manufacturing category, which is subject to certain barriers.

Shivalik Bimetal Controls Ltd

The company is engaged in the business of manufacturing & sales of thermostatic bimetal/trimetal strips and components, current sense metal strip shunts/resistors, SMD current sense resistors and other electron beam welded products. It specialises in joining metals to form bimetal and trimetal strips and components which use niche technology such as electron beam welding, hot diffusion bonding, resistance welding, and continuous brazing. 

With the market cap of Rs 2,936 crore, the shares of Shivalik Bimetal Controls Ltd  have closed at Rs 510 and are trading at a PE of 32.1, whereas its industry PE is at 20.4. Shivalik is a specialist in bimetal/trimetallic strips, utilising high-tech material joining technologies such as electron beam welding and hot diffusion bonding. This is a very niche business, technically speaking, requiring precision metalworking rather than more general metal fabrication, making this an effective competitive barrier.

Va Tech Wabag Ltd

Va Tech Wabag Ltd is engaged in the business of the water treatment field. Its principal activities include design, supply, installation, construction and operational management of drinking water, wastewater treatment, industrial water treatment and desalination plants. With the market cap of Rs 7,975 crore, the shares of Va Tech Wabag Ltd  have closed at Rs 1,280 and are trading at a PE of 23.1, whereas its industry PE is at 20.3.

The company operates in the infrastructure segment of the water and wastewater treatment engineering industry, which is a niche sector. The company provides engineering, procurement, and construction solutions in the desalination, sewage treatment, and industrial water recycling businesses. The company’s strength lies in the provision of advanced technological solutions in the water treatment business and the operation of the facilities, which is different from other EPC companies and provides protection against the lack of infrastructure in scarce water resources worldwide.

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