The Indian agricultural sector is projected to grow to $24 billion by 2025. The food and grocery market in India is the sixth largest in the world, with retail accounting for 70% of total sales.
Agriculture plays a crucial role in the country, as about 55% of the population depends on it for their livelihoods. India has the largest herd of cattle (mainly buffaloes) and the most land used for growing crops like wheat, rice, and cotton. With the second-largest agricultural land globally, the sector provides jobs for nearly half of India’s population, highlighting the importance of farmers in maintaining the food supply. In this article, explore the best agriculture stocks in India in October 2024 based on the 5-year CAGR.
| Name | Market Cap (₹ in crore) | PE Ratio | 1Y Return (%) | 5Y CAGR (%) |
| Fertilisers And Chemicals Travancore Ltd | 59,449.74 | 406.69 | 39.67 | 88.55 |
| Deepak Fertilisers and Petrochemicals Corp Ltd | 13,082.03 | 29.56 | 52.18 | 63.31 |
| Gujarat Ambuja Exports Ltd | 6,399.37 | 18.5 | -26.59 | 34.02 |
| Coromandel International Ltd | 47,893.77 | 29.16 | 40.84 | 31.92 |
| Rashtriya Chemicals and Fertilizers Ltd | 9,719.64 | 43.14 | 26.89 | 30.17 |
| Chambal Fertilisers and Chemicals Ltd | 20,106.74 | 15.76 | 69.92 | 27.93 |
| Gujarat Narmada Valley Fertilizers & Chemicals Ltd | 9,517.35 | 19.15 | -3.18 | 25.99 |
| Gujarat State Fertilizers & Chemicals Ltd | 8,575.63 | 15.2 | 5.01 | 22.76 |
| Bayer Cropscience Ltd | 29,755.71 | 40.18 | 25.47 | 14.71 |
| Godrej Agrovet Ltd | 14,882.96 | 41.38 | 59.31 | 10.13 |
Note: The top 10 agriculture stocks in India in October here are selected from the Nifty 500 universe and sorted as per the 5-yr CAGR as of October 15, 2024.
Fertilisers & Chemicals Travancore Ltd (FACT) was established in 1943 and is known as the first large-scale fertiliser plant in India, located in Udyogamandal, Kochi, Kerala. The company focuses on manufacturing and selling a variety of fertilisers, by-products, and Caprolactam, operating under the Department of Fertilisers, part of the Ministry of Chemicals & Fertilisers, Government of India.
In the quarter ending June 2024, the company’s revenue increased to ₹476.81 crore from ₹393.25 crore in the previous quarter. Its net profit also decreased to ₹-136.37 crore from ₹-88.05 crore in the earlier quarter.
Key metrics:
Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) is a leading manufacturer of fertilisers and industrial chemicals in India. The company is among the top producers of industrial chemicals in the country, emphasising the production of high-quality chemicals that comply with both domestic and international standards. DFPCL’s product lineup includes Isopropyl Alcohol (IPA), Nitric Acid, Methanol, and Liquid Carbon Dioxide.
For the quarter ended June 2024, the company’s revenue increased to ₹452.16 crore from ₹442.76 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹71.34 crore from ₹112.34 crore in the previous quarter.
Key metrics:
Gujarat Ambuja Exports is involved in producing corn starch derivatives, soya derivatives, feed ingredients, cotton yarn, and edible oils. Since it was founded in 1991, GAEL has aimed to serve the food, pharmaceutical, feed, and other industries while focusing on long-term growth in the agro-processing sector.
For the quarter ended June 2024, the company’s revenue decreased to ₹1,090.44 crore from ₹1,346.44 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹76.74 crore from ₹91.40 crore in the previous quarter.
Key metrics:
Coromandel International Ltd is a leading agricultural solutions provider in India, offering a variety of products and services across the farming value chain. The company specialises in fertilisers, crop protection, bio-pesticides, speciality nutrients, and organic fertilisers. Coromandel sells different types of phosphatic fertilisers in India and has about a 40% share of the unique-grade fertiliser market. It is a major player in Andhra Pradesh and Telangana, which are the largest markets for complex fertilisers in the country.
For the quarter ended June 2024, the company’s revenue increased to ₹4,713.30 crore from ₹3,899.84 crore in the preceding quarter. Meanwhile, the net profit increased to ₹330.96 crore from ₹209.46 crore in the previous quarter.
Key metrics:
Rashtriya Chemicals and Fertilisers Ltd (RCF) is an Indian manufacturer of chemicals and fertilisers, founded in 1978 and operated by the Ministry of Chemicals and Fertilisers. The company produces a variety of products, including complex fertilisers, urea, bio-fertilisers, micro-nutrients, and soil conditioners at its plants in Trombay, Mumbai, and Thal in the Raigad district. Besides fertilisers, RCF also makes various industrial chemicals that are used in the production of leather, pharmaceuticals, solvents, dyes, and more.
For the quarter ended June 2024, the company’s revenue increased to ₹4,396.06 crore from ₹3,879.65 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹10.73 crore from ₹97.65 crore in the previous quarter.
Key metrics:
India’s agriculture sector is expected to grow steadily in the coming years due to increased investments in infrastructure such as irrigation, storage, and cold chains. Using genetically modified crops is also likely to improve farmers’ crop yields. With new, faster-growing pulse varieties and higher minimum support prices, India is on track to become self-sufficient in pulses soon.
In the next 5 years, the government plans to invest $9 billion in the fisheries sector through the PM Matsya Sampada Yojana to increase fish production to 220 lakh tonnes by 2024-25. The food processing industry will benefit from adopting quality standards like ISO 9000, HACCP, and good manufacturing practices, which help ensure food safety and quality. The Ministry of Food Processing Industries (MoFPI) is actively promoting more investment in food processing, and the government has extended the PMKSY scheme, which has a budget of ₹4,600 crore ($559.4 million), until March 2026.
These are the best agriculture stocks list for October, based on a 5-year compound annual growth rate (CAGR). However, before making any investment decisions, be sure to research the company’s financial health, management, and past performance.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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