Best Fertilizer Stocks In India

Best Fertilizer Stocks In India

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Fertilizer stocks include firms that produce and distribute fertilizers. Fertilizers are critical for increasing food output and ensuring enough food availability for everybody in India. Without fertilizers, farmers may have to clear more land for crops. This may accelerate deforestation and harm the ecosystem. So, it has a big influence on our life. As India's population and food consumption have increased, fertilizer stocks have emerged as a popular investment opportunity. Investing in these stocks helps you to diversify your portfolio while also gaining exposure to some of the performing firms. This article will discuss the 10 fertilizer stocks in India based on their PE ratio and for investors by further addressing why to invest, demonstrating future projections of this sector, and understanding the benefits and risks involved with the fertilizer sector stocks.

What are Fertilizer Stocks?

Fertilizer stocks are the publicly traded stocks of companies that produce, manufacture or distribute fertilizers. They are listed on stock exchanges in India. They manufacture and sell a variety of fertilizers based on nitrogen, phosphate, potash fertilizers, etc. They also include companies that produce natural gas, process ammonia, and conduct research on various plant nutrition products used in agriculture. 

Table of Contents

  1. What are Fertilizer Stocks?
  2. Top 10 Fertilizer Stocks List 2024
  3. Overview of the Fertilizer Sector Stocks 
  4. Growth of fertilizer Stocks In India
  5. Features Of fertilizer Stocks In India
  6. How To Select the Best Fertilizer Stocks In India?
  7. Why Should You Invest in Fertilizer Stocks In India?
  8. How to Invest in Fertilizers Sector Stocks
  9. Benefits of Investing in Fertilizers Sector Stocks
  10. Risks Associated With fertilizer Stocks In India
  11. Factors Affecting Fertilizer Stocks

Top 10 Fertilizer Stocks List 2024

Here is the top 10 fertilizer stocks list. 

Company 5 Years CAGR (26th Aug’24)P/E Ratio
Madras Fertilizers Limited42%13.8
Chambal Fertilisers and Chemicals Limited27%

14.6

 

Gujarat Narmada Valley Fertilizers & Chemicals Limited30%

19.3

 

Deepak Fertilizers & Petrochemicals69%

26

 

National Fertilizers Limited (NFL)40%26
Paradeep Phosphates Limited-31.4
Tata Chemicals Limited34%35.2
Coromandel International Limited35%35.5
Rashtriya Chemicals & Fertilizers Limited37%

70

 

Fertilizers And Chemicals Travancore Ltd96%299

Disclaimer: The information provided on the above stocks is for informational purposes only. It is crucial to conduct thorough research before making any investment decisions regarding these stocks. We do not recommend trading any stocks without comprehensive research and professional financial advice. Always consult with a certified financial advisor to ensure informed and appropriate investment choices.
 

Overview of the Fertilizer Sector Stocks 

Let’s have a quick look at the fertilizer stocks in India. 

Madras Fertilisers Limited

  • Madras Fertilisers Limited established in 1966 is a leading Indian fertilizer company headquartered in Chennai. 
  • It produces a range of products including urea, ammonium sulphate, and complex fertilisers. Known for its robust manufacturing capabilities and focus on agricultural productivity. 
  • The company plays a crucial role in enhancing crop yields and supporting sustainable farming practices across India.

Get more details about Madras Fertilisers Limited share price here.

Know the Madras Fertilisers Limited Share Price History here.

Chambal Fertilisers and Chemicals Limited

  •  Established in 1985 Chambal Fertilisers and Chemicals Limited is a major Indian producer of nitrogenous fertilisers, including urea and ammonium nitrate. 
  • With its headquarters in Kota, Rajasthan, the company emphasizes innovation and efficiency in its operations.
  • The company contributes significantly to the agricultural sector by improving soil health and crop productivity.

Get more details about Chambal Fertilisers and Chemicals Limited share price here.

Know the Chambal Fertilisers and Chemicals Limited Share Price History here.

Gujarat Narmada Valley Fertilisers & Chemicals Limited

  • Gujarat Narmada Valley Fertilisers & Chemicals Limited established in 1980 is a prominent player in India's fertilizer industry, based in Gujarat. 
  • The company manufactures urea, ammonium nitrate, and complex fertilisers, focusing on enhancing agricultural output and promoting sustainable practices.
  • Its extensive distribution network supports farmers across the country.

Get more details about Gujarat Narmada Valley Fertilisers & Chemicals Limited share price here.

Know the Gujarat Narmada Valley Fertilisers & Chemicals Limited Share Price History here.

Deepak Fertilizers & Petrochemicals

  • Deepak Fertilizers & Petrochemicals established in 1979 is a key Indian firm involved in the production of fertilizers, including urea, ammonium nitrate, and specialty chemicals. 
  • Headquartered in Pune, Maharashtra, the company also engages in petrochemicals and industrial chemicals. 
  • It contributes to agricultural efficiency and industrial growth through its diverse product portfolio.

Get more details about Deepak Fertilizers & Petrochemicals share price here.

Know the Deepak Fertilizers & Petrochemicals Share Price History here.

National Fertilizers Limited (NFL)

  • National Fertilisers Limited (NFL) was established in the year 1974 is a major state-owned fertilizer manufacturer in India. 
  • With a broad range of products including urea, di-ammonium phosphate (DAP), and complex fertilisers, NFL supports agricultural development across the nation. 
  • Its extensive manufacturing and distribution network plays a pivotal role in enhancing crop yields and agricultural productivity.

Get more details about National Fertilizers Limited share price here.

Know the National Fertilizers Limited Share Price History here.

Paradeep Phosphates Limited

  • Established in 1981 Paradeep Phosphates Limited is a leading Indian producer of phosphatic fertilisers.
  • With a focus on single super phosphate (SSP) and complex fertilisers. 
  • The company is located in Paradeep, Odisha, the company supports Indian agriculture by providing essential nutrients that improve soil health and crop performance, enhancing overall agricultural productivity.

Get more details about Paradeep Phosphates Limited share price here.

Know the Paradeep Phosphates Limited Share Price History here.

Tata Chemicals Limited

  • Tata Chemicals Limited established in 1939 is a diversified global company headquartered in Mumbai, India. 
  • It operates in chemicals, fertilizers, and specialty materials, producing products like soda ash, caustic soda, and complex fertilizers. 
  • Tata Chemicals is known for its commitment to sustainability and innovation, supporting agricultural and industrial sectors worldwide.

Get more details about Tata Chemicals Limited share price here.

Know the Tata Chemicals Limited Share Price History here.

Coromandel International Limited

  • Coromandel International Limited established in 1961 is a major Indian fertilizer company based in Hyderabad. 
  • It manufactures a variety of fertilizers, including phosphate-based products, and focuses on improving soil health and crop yields. 
  • The company is recognized for its robust distribution network and commitment to agricultural development and sustainability.

Get more details about Coromandel International Limited share price here.

Know the Coromandel International Limited Share Price History here.

Rashtriya Chemicals & Fertilisers Limited

  • Rashtriya Chemicals & Fertilisers Limited established in 1978 is a significant Indian public sector enterprise in the fertilizer industry. 
  • Based in Mumbai, the company produces urea, complex fertilisers, and industrial chemicals. 
  • It plays a crucial role in boosting agricultural productivity and supporting farmers through its extensive product range and nationwide distribution network.

Get more details about Rashtriya Chemicals & Fertilisers Limited share price here.

Know the Rashtriya Chemicals & Fertilisers Limited Share Price History here

Fertilisers And Chemicals Travancore Ltd

  • Fertilisers And Chemicals Travancore Ltd established in 1943 is a prominent Indian fertilizer manufacturer headquartered in Kochi, Kerala. 
  • The company produces a range of products including urea, ammonium sulphate, and complex fertilisers.
  •  It supports Indian agriculture by providing essential nutrients and enhancing crop yields, contributing to the country's agricultural sustainability.

Get more details about Fertilisers And Chemicals Travancore Ltd share price here.

Know the Fertilisers And Chemicals Travancore Ltd Share Price History here

 

Growth of fertilizer Stocks In India

India has a significant demand for fertilizers due to vast crop production. fertilizer firms play an important role in strengthening the agricultural industry by nourishing the soil with essential nutrients. Dominated by urea, DAP, and complex fertilizers, the Indian fertilizer sector has seen a major transition as a result of government support and the inflow of private enterprises. Forecasts indicate that the Indian fertilizer industry would grow rapidly due to population growth, changing food habits, and increased agricultural output.  

Features Of fertilizer Stocks In India

The key features of fertilizer stocks in India are as follows.

    How To Select the Best Fertilizer Stocks In India?

    To choose the best fertilizer stocks in India, evaluate the company's financial performance, market share, and product portfolio. Conduct in-depth research on industry trends, government policies, and global fertilizer demand. Examine their competitive position, distribution network, and technical improvements to determine the growth potential. Check if they have an excellent management team. Also consider the production capacity, raw material procurement, and pricing strategies when making fertilizer stock investment selections.

    Why Should You Invest in Fertilizer Stocks In India?

    In India, more than 60% of the population is involved in agricultural activities. India's fertilizer sector is critical to increasing agricultural production and ensuring food security. The government of India intends to strengthen farmers, economically disadvantaged groups, and women by investing in the agriculture sector. 

    Furthermore, the Agriculture Accelerator Fund will be established to assist start-ups in the agricultural sector. So, India's fertilizer sector stocks may grow in future.

    How to Invest in Fertilizers Sector Stocks

    You should follow the steps mentioned below to invest in fertilizer sector stocks in India.

    1. First, research properly and check the fundamentals of the company to invest in fertilizer stocks. 
    2. Check the manufacturing capacity and sustainability of a company.
    3. Go through the financial statements, like the balance sheet of a company, before investing in it. Check its revenue growth and gross profits.
    4. Invest in different stocks to properly diversify your portfolio.
    5. Also, keep track of the market trends and adjust your portfolio if required.
    6. In addition, remember to invest through a platform offered by a well-known and trusted brokerage firm.

    Benefits of Investing in Fertilizers Sector Stocks

    Fertilizer stocks in India offer the following benefits.

      Risks Associated With fertilizer Stocks In India

      Although fertilizer stocks have many advantages, there are also some risks. The following are some of them.

        Factors Affecting Fertilizer Stocks

        Here are some significant aspects influencing Fertilizers Sector Stocks:

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        FAQs on Fertilizer Stocks

        To analyse the performance of fertilizer stocks, check various financial metrics like price-to-earnings ratio, and earnings per share, debt-equity ratio.

        Changes in policies of the government may impact the revenue and overall profits of fertilizer stocks. Hence, their share prices may rise or fall.

        Yes, investors should diversify their holdings while investing in fertilizer stocks. It helps them to reduce losses if some stocks don’t perform well, as per the expectations.

        Fertilizers play an important part in India's agricultural production. As a result, the leading fertilizer stocks offer a good investment opportunity for anyone interested in agriculture or the commodities market. However, before investing, one should consider their investment objectives and risk tolerance.

        Economic recessions may affect fertilizer stocks. However, the impact may not be very big as they are considered as important commodities to ensure sufficient food production. Their demand doesn’t fall until the economic condition is very bad.