Best Agriculture Stocks in January 2025: Titan Biotech, RM Drip & Sprinklers and More- Based on 5 Yr CAGR

India’s agriculture and farm machinery sector is benefiting from a series of government initiatives aimed at boosting productivity and promoting sustainability.

In February agriculture stocks gained attention as Finance Minister Nirmala Sitharaman highlighted agriculture as one of India’s four key drivers of development.

In the Union Budget 2025-26, she announced initiatives like the Prime Minister Dhan-Dhaanya Krishi Yojana and increased the allocation to the Ministry of Agriculture and Farmers’ Welfare to ₹1.37 lakh crore. The budget also introduced measures like a Makhana Board in Bihar and a national mission on high-yielding seeds, strengthening the sector’s future growth potential.

These initiatives are expected to significantly benefit companies involved in the agricultural sector positioning them as strong contenders for future growth.

In this evolving landscape, we’ll focus on those agri companies that have shown strong performance, particularly those leading the way with the best 5-year CAGR.

Best Agriculture Stocks in February 2025 – Based on 5-Yr CAGR

Note: The list of best agriculture stocks here is sorted based on their 5Y CAGR, as of February 4, 2025.

Overview of the Best Agriculture Stocks in February 2025

1. Ambar Protein Industries Ltd

Ambar Protein Industries Ltd., founded in 1992 in Ahmedabad, is renowned for delivering high-quality edible oils. The company’s flagship brand, Ankur, has become a household name, symbolising trust and nutrition.

Committed to maintaining the highest standards of quality, Ambar Protein Industries prioritiSes health-conscious consumers. Over the years, the company has grown while staying true to its core values of purity and customer satisfaction.

Key metrics:

• Return on Capital Employed (ROCE): 23.62%
• Return On Equity (ROE): 13.4%

2. Fertilisers And Chemicals Travancore Ltd

The Fertilisers and Chemicals Travancore Limited (FACT) is a public sector enterprise established in 1943 as India’s first large-scale fertiliser plant. Located in Kochi, Kerala, FACT has expanded into a multi-divisional organisation, producing fertilisers, chemicals, and petrochemicals.

Over the years, it has pioneered indigenous capabilities for plant design and construction, contributing significantly to India’s fertiliser industry. With continuous innovation and government support, FACT remains a key player in supporting agricultural development.

Key metrics:

• ROCE: 18.39%
• ROE: 11.03%

3. Titan Biotech Ltd

Titan Biotech Limited is a leading manufacturer and exporter of high-quality raw material ingredients for various industries, including nutraceuticals, pharmaceuticals, cosmeceuticals, and food and beverage.

With over 30 years of market presence, the company specialises in clinically approved collagen (fish, bovine, and chicken), skin care ingredients, bone and joint care products, animal nutrition, and more. The company serves a global market, providing innovative biological solutions in over 100 countries.

Key metrics:

• ROCE: 23.8%
• ROE: 20.43%

4. Madhya Bharat Agro Products Ltd

Madhya Bharat Agro Products Limited (MBAPL) is a leading manufacturer of agricultural products, including Beneficiated Rock Phosphate (BRP), single super phosphate, DAP/NPK complex fertilisers, and other chemicals.

Established in 1997 and later integrated into the Ostwal Group in 2004, MBAPL has played a key role in reducing India’s dependency on foreign agricultural inputs. The company is committed to producing high-quality fertilisers and chemicals at affordable rates for Indian farmers.

Key metrics:

• ROCE: 74.33%
• ROE: 17.33%

5. RM Drip & Sprinklers Systems Ltd

R M Drip & Sprinklers Systems Ltd. specialises in providing high-quality irrigation products, including drip and sprinkler systems, designed to enhance agricultural productivity. Established with a focus on reliability, durability, advanced technology, and responsive service.

With strong infrastructure and a nationwide dealer network, it continues to support the farming community across India.

Key metrics:

• ROCE: 20.31%
• ROE: 0.14%

Agriculture Stocks by Market Capitalisation

Agriculture Sector Stocks Sorted by Net Profit Margin

Key Considerations Before Investing in Agriculture Stocks

1. Understanding market demand and supply trends

Agriculture stocks are often sensitive to demand fluctuations for crops, livestock, and food products. Pay attention to trends in global population growth, urbanisation, and changing diets (such as increasing demand for plant-based food) which can influence agricultural demand.

2. Weather and climate risks

Agriculture is highly vulnerable to climate change and unpredictable weather events such as droughts, floods, and storms. These can affect crop yields, livestock health, and farm productivity.

3. Government policies and subsidies

Agriculture is often subject to government regulation, including subsidies, tariffs, and import/export policies. Be aware of government support for the agricultural sector in the form of subsidies for fertilisers, seeds, or crop insurance, which can impact the financial viability of agriculture companies.

4. Technological advancements

The adoption of agriculture technology such as precision farming, drones, and genetically modified organisms (GMOs) can significantly increase crop yields and reduce costs. Investing in companies that embrace technological innovations can enhance long-term growth prospects.

5. Supply chain and distribution network

Agriculture stocks related to the supply chain (e.g., fertiliser companies, irrigation equipment manufacturers, logistics companies) should be evaluated based on the strength of their distribution network and ability to maintain a steady supply of products.

Conclusion

Investing in agriculture stocks can be appealing, particularly for those aiming to benefit from the sector’s growth. However, it’s crucial to establish clear investment objectives and evaluate your risk tolerance, as factors like weather patterns, commodity price volatility, and government policies can impact the sector.

A comprehensive assessment of a company’s financial health, performance, and long-term growth potential will ensure your investments are in line with your financial goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.