- 24 Oct 2024
6 mins read- By: BlinkX Research Team
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.
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Table of Contents
- What are Fertilizer Stocks?
- Top 10 Fertilizer Stocks List 2024
- Overview of the Fertilizer Sector Stocks
- Growth of fertilizer Stocks In India
- Features Of fertilizer Stocks In India
- How To Select the Best Fertilizer Stocks In India?
- Why Should You Invest in Fertilizer Stocks In India?
- How to Invest in Fertilizers Sector Stocks
- Benefits of Investing in Fertilizers Sector Stocks
- Risks Associated With fertilizer Stocks In India
- 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 Limited | 42% | 13.8 |
| Chambal Fertilisers and Chemicals Limited | 27% | 14.6
|
| Gujarat Narmada Valley Fertilizers & Chemicals Limited | 30% | 19.3
|
| Deepak Fertilizers & Petrochemicals | 69% | 26
|
| National Fertilizers Limited (NFL) | 40% | 26 |
| Paradeep Phosphates Limited | - | 31.4 |
| Tata Chemicals Limited | 34% | 35.2 |
| Coromandel International Limited | 35% | 35.5 |
| Rashtriya Chemicals & Fertilizers Limited | 37% | 70
|
| Fertilizers And Chemicals Travancore Ltd | 96% | 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.
Market Demand:
The demand of agricultural products impacts fertilizer stocks. Factors such as population growth and food consumption trends determine it.
Government Policies:
Government rules and policies involving subsidies, pricing, and import/export controls have a substantial influence on fertilizer stockpiles. Changes to these rules can impact the profit of fertilizer firms.
Raw Material Prices:
fertilizer manufacturing depends on raw materials such as natural gas, phosphates, and potassium. Prices for various raw materials fluctuate, which can have an impact on the cost structure and profits of fertilizer firms.
Seasonal Variations:
fertilizer needs vary seasonally. The demand is high during planting seasons. fertilizer stocks' earnings and stock values may fluctuate due to the variation in demand during different seasons.
- First, research properly and check the fundamentals of the company to invest in fertilizer stocks.
- Check the manufacturing capacity and sustainability of a company.
- Go through the financial statements, like the balance sheet of a company, before investing in it. Check its revenue growth and gross profits.
- Invest in different stocks to properly diversify your portfolio.
- Also, keep track of the market trends and adjust your portfolio if required.
- In addition, remember to invest through a platform offered by a well-known and trusted brokerage firm.
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.
Benefits of Investing in Fertilizers Sector Stocks
Fertilizer stocks in India offer the following benefits.
Diversification
Investing in fertilizer stocks can help you diversify your portfolio and obtain exposure to some of the top firms in this industry. This will allow you to curate a balanced portfolio along with various assets such as bonds, equities, and mutual funds.
High Growth Potential
The world population may grow more than 33% by 2050, increasing the demand for food. Further, the growing earnings in developing markets have led to a demand for high-quality food items. This requires higher inputs and the use of fertilizers for large-scale production. Therefore, investing in fertilizer stocks might give investors significant growth opportunities.
Risk Management
Investing in fertilizer stocks also helps in risk management since the industry often follows trends that differ from other industries. This allows investors to reduce their exposure to market risks and diversify their investments appropriately.
Export Restrictions
Stocks in the fertilizer business are occasionally subject to export restrictions. This keeps you informed of any changes in rules and regulations and adapt your holdings accordingly.
Access to Promising Companies
Investing in fertilizer stocks is especially advantageous for investors looking for long-term growth. This is because it allows them to invest in well-managed firms with the potential to create better returns.
