Best Fertiliser Stocks For February 2025 – Based on 5Y CAGR: RCF, Deepak Fertilisers and More

Fertilisers play a crucial role in helping farmers produce the crops necessary to meet the demand. With this in mind, fertilizer stocks represent an intriguing opportunity for investors looking to capitalize on a growing industry with a direct impact on global food security. In this article, let’s look at some of the best fertiliser stocks in India for February 2025 based on different parameters.

Best Fertiliser Stocks In India Based on 5Y CAGR 

Note: The best fertiliser stocks for Feb 2025 are sorted based on 5YCAGR as of January 31, 2025. 

Overview of Best Fertiliser Stocks 

1. Fertilizers & Chemicals Travancore Ltd

Fertilisers & Chemicals Travancore Ltd (FACT) is engaged in the manufacturing and selling of fertilizers, its by-products and Caprolactam. The company produces a wide range of fertilisers like Complex fertilisers (Factamfos), Straight fertilisers (Ammonium Sulphate), Organic fertilisers, Biofertilisers and Imported fertilisers (Muriate of Potash).

Key metrics: 

• Return on equity (ROE): 29.4%
• Return on Capital Employed (ROCE): 16.9

2. Deepak Fertilisers and Petrochemicals Corporation Ltd

Deepak Fertilisers and Petrochemicals Corporation Ltd is in the business of fertilisers, agri services, bulk chemicals, mining chemicals and real estate. During Q3FY25, the company reported a remarkable 72% increase in EBITDA to ₹486 crore. CNB business continue to out-perform, revenue up by 55% YOY, driven by good monsoon and execution of crop focus value added strategy

Key metrics: 

• ROE: 7.67%
• ROCE: 10.7%

3. Coromandel International Ltd

Coromandel International offers a diverse range of products and services across the farming value chain. It specializes in fertilizers, crop protein, bio pesticide, specialty nutrients, organic fertilizers, etc. The company reported robust performance in Q3 FY25, backed by strong sales volumes in Nutrients and crop protection segments, operational excellence across businesses and continued execution of its strategic initiatives.

Key metrics: 

• ROE:18.99%
• ROCE: 26%

4. Rashtriya Chemicals & Fertilisers Ltd

Rashtriya Chemicals & Fertilizers is a public sector undertaking (PSU) engaged in manufacturing and marketing of fertilizers and industrial chemicals. RCF manufactures Urea, Complex Fertilizers, Biofertilizers, Micro-nutrients, 100 per cent water soluble fertilizers, soil conditioners and a wide range of Industrial Chemicals

Key metrics: 

• ROE: 4.20%
• ROCE: 6.16%

5. Gujarat Narmada Valley Fertilizers & Chemicals Limited

Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) operates mainly in the Industrial Chemicals, Fertilizers apart from the small presence of IT services. During 1HFY25 revenue is adversely affected due to prolonged maintenance shutdown of TDI – Dahej plant resulting into lower volume

Key metrics: 

• ROE: 5.63%
• ROCE: 7.71%

Best Fertiliser Stocks In India Based on 5Y CAGR 

Note: The best fertiliser stocks for Feb 2025 are sorted based on 5YCAGR as of January 31, 2025. 

Overview of the Fertiliser Industry

The Indian fertilizer industry is set for significant growth, with the market projected to reach ₹1.38 lakh crore by 2032, growing at a Compound Annual Growth Rate (CAGR) of 4.2% from 2024 to 2032. This underscores the sector’s vital role in boosting India’s agricultural output and ensuring food security.

In 2023, the market size was ₹94,210 crore, fueled by increasing agricultural demands and proactive government measures. Fertilizer production in FY24 reached 45.2 million tonnes, reflecting the success of the Ministry of Fertilizers’ policies. As the world’s second-largest producer of fruits and vegetables, after China, India’s agricultural prominence further drives the industry’s growth.

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.