Fertiliser stocks are shares in companies that produce and distribute fertilisers and other essential agricultural materials. This sector includes businesses that make nitrogen-based compounds, process ammonia, and create plant nutrition products that are important for crop growth. In this article, let’s look at some of the best fertiliser stocks in India for October 2024 based on the 5-year CAGR.
| Name | Market Cap (₹ in crore) | PE Ratio | 5Y CAGR (%) | 1Y Return (%) |
| Fertilisers And Chemicals Travancore Ltd | 58,957.96 | 403.32 | 85.6 | 65.88 |
| Deepak Fertilisers and Petrochemicals Corp Ltd | 13,735.94 | 31.04 | 62.85 | 68.14 |
| Coromandel International Ltd | 47,711.16 | 29.05 | 30.85 | 34.79 |
| Rashtriya Chemicals and Fertilisers Ltd | 9,624.75 | 42.72 | 29.98 | 35.64 |
| Chambal Fertilisers and Chemicals Ltd | 19,962.50 | 15.65 | 26.96 | 75.72 |
Note: The best fertiliser stocks listed in October in India here are sorted as per the 5-yr CAGR as of October 08, 2024.
Fertilizers & Chemicals Travancore Ltd (FACT) was established in 1943 and is the first large-scale fertiliser plant in India, located in Udyogamandal, Kochi, Kerala. The company produces and sells fertilisers, along with its by-products and Caprolactam. It operates under the supervision of the Department of Fertilizers in the Ministry of Chemicals & Fertilizers, Government of India.
In the quarter ending June 2024, Sky Gold Limited’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.
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Founded in 1979, Deepak Fertilisers and Petrochemicals Corporation Ltd focuses on fertilisers, agricultural services, bulk chemicals, mining chemicals, and real estate. It is a major producer of fertilisers and industrial chemicals.
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.
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Coromandel International Ltd is one of the top agricultural solution providers in India. It offers a wide range of products and services throughout the farming value chain, specialising in fertilisers, crop protection, bio-pesticides, speciality nutrients, and organic fertilisers. Coromandel sells different types of phosphatic fertilisers in the domestic market, holding about a 40% share in unique-grade fertiliser sales in India.
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.
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Rashtriya Chemicals & Fertilizers is a public sector company, with 75% of its ownership held by the Government of India. The company focuses on producing and selling fertilisers and industrial chemicals.
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.
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Chambal Fertilisers & Chemicals Ltd produces urea at its own manufacturing plants and also sells other fertilisers and agricultural inputs. Additionally, it has a joint venture in Morocco to produce phosphoric acid. The company was previously involved in the software business, but in FY21, it sold its assets and transferred some liabilities to stop its software operations.
For the quarter ended June 2024, the company’s revenue increased to ₹4,933.23 crore from ₹2,643.04 crore in the preceding quarter. Meanwhile, the net profit increased to ₹552.16 crore from ₹86.21 crore in the previous quarter.
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The Indian fertiliser industry is experiencing strong growth. According to IMARC Group, it is expected to reach US$16.58 billion (₹1.38 lakh crore) by 2032, with a compound annual growth rate (CAGR) of 4.2% from 2024 to 2032. In 2023, the market size was US$11.32 billion (₹94,210 crore), driven by rising agricultural demand and government support. In FY24, fertiliser production reached 45.2 million tonnes, indicating the success of government policies.
As the world’s 2nd largest producer of fruits and vegetables, India benefits from initiatives like PM-KISAN and PM-Garib Kalyan Yojana, which improve farmers’ financial conditions and boost fertiliser investment, with backing from the United Nations Development Programme for food security.
Union Minister of Health and Family Welfare, Mr Mansukh Mandaviya, announced plans to increase the number of nano-liquid urea plants to 13 by 2025, aiming to produce 44 crore bottles of 500 ml nano urea and DAP. As part of the Atmanirbhar Bharat initiative, imports of urea dropped by 7%, DAP by 22%, and NPKs by 21% in FY24.
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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