The fertilizer industry is the backbone of India’s agriculture sector. This industry is not only expanding but flourishing as a result of government initiatives to reduce dependency on imports and increase domestic solutions. Here, fertilizers are essential to food security, and local production is expected to grow rapidly with government incentives and subsidies. IPO Central compiled a list of best fertilizer stocks in India based on their market capitalization, Return on Capital Employed (ROCE), Price-to-Earnings (P/E) ratio, and Debt-to-Equity ratio. Let’s dig deeper and explore the best fertilizer stocks in India.
Table of Contents
Coromandel International – First Among Best Fertilizer Stocks in India
A major player in the agri-solutions industry, Coromandel International is well-recognized for its crop protection products and fertilizers. The company is leading with a 40% market share in unique-grade fertilizer. Its 16 production facilities produce 4.5 million tons of fertilizer annually, mostly in Telangana and Andhra Pradesh, where demand is extremely strong.
They also prioritize research and development, with seven labs developing innovative, sustainable products. In June 2023, the company raised its stake to 51% Chennai-based drone start-up Dhaksha Unmanned Systems for INR 204 crore.
Market Cap – INR 55,156.13 crore
Net income – INR 1,641 crore
1 Yr Returns – 62.70%
ROCE – 25.98%
PE ratio – 40.59
Debt to Equity Ratio – 0.06
Paradeep Phosphates
Established in 1981, Paradeep Phosphates (PPL) is a well-known fertilizer firm in India. The company produces fertilizers that farmers love, like Di-Ammonium Phosphate (DAP) and NPK fertilizers. The production plant of the company is situated in Paradeep, Odisha. It makes distribution and raw supply networks easily accessible. The company prefers longevity by using technology and eco-friendly practices. With such dedication and innovation, Paradeep is benefiting farmers and advancing the nation’s food security goals.
Market Cap – INR 9,497.18 crore
Net income – INR 100 crore
1 Yr Returns – 47.85%
ROCE – 6.74%
PE ratio – 26.07
Aries Agro – Most Popular in Best Fertilizer Stocks in India
Aries Agro is the most popular fertilizer producer in India with a focus on creating micronutrients and specialty fertilizers. Due to its best-quality products, Aries Agro has been a well-known brand among farmers since its founding in 1969. The company supplies a range of products, including organic plant nutrients, chelated micronutrients, and water-soluble fertilizers, that are appropriate for various soil and crop needs. Aries Agro operates several manufacturing plants throughout India to guarantee farmers timely access.
Market Cap – INR 352.04 crore
Net income – INR 18 crore
1 Yr Returns – 30.27%
ROCE – 14.79%
PE ratio – 12.58%
Debt to Equity Ratio – 0.13
Chambal Fertilizers & Chemicals
The market for urea is dominated by Chambal Fertilizers, which produce 13% of India’s total. With a capacity of 3.4 lakh MT, its facilities in Kota, Rajasthan, are exceptional. The company reported INR 17,966 crore in revenue and INR 1,276 crore in net profits after diversifying into biologicals and sustainable products. It launched new weedicide and biological products on December 1, 2023, with plans to expand internationally through collaborative partnerships.
Market Cap – INR 20,064.65 crore
Net income – INR 1,276 crore
1 Yr Returns – 30.91%
ROCE – 20.21%
PE ratio – 13.02
Debt to Equity Ratio – 0.01
Teesta Agro Industries
With a focus on affordability and soil health, Teesta Agro is your small-cap investment in Single Super Phosphate (SSP) fertilizers. The company currently have a 1 lakh MT yearly capacity, but they intend to grow. They reported INR 200 crore in revenue and INR 15 crore in net income, with an OPM of 7.5%. With studies focused on improving SSP efficiency, Teesta Agro announced an expansion in eastern India to fulfil the growing demand.
Market Cap – INR 56.41 crore
Net income – INR 4 crore
1 Yr Returns – 12.95%
ROCE – 4.32%
PE ratio – 14.43
Debt to Equity Ratio – 0.05
Fertilizers and Chemicals Travancore (FACT)
Fertilizers and Chemicals Travancore (FACT) was founded in 1943. FACT is one of the most reputable and renowned fertilizer manufacturers in India. FACT has its headquarters in Kochi, Kerala. Along with vital industrial chemicals like caprolactam, it manufactures premium fertilizers like ammonium sulfate and complex fertilizers. The company prioritizes eco-friendly and energy-efficient production techniques as part of its commitment to sustainability. FACT is a major contributor to the agricultural and industrial development of India because of its advantageous location close to ports and supplies of raw materials, which fortifies its distribution network.
Market Cap – INR 61,580.90 crore
Net income – INR crore
1 Yr Returns – 17.36%
ROCE – 16.94%
Conclusion
India’s fertilizer industry is expanding on account of favourable government regulations and agricultural demands. While businesses like Aries Agro and Teesta provide unique potential, stocks like Coromandel and Chambal are good choices for stability and market domination. In order to ensure that these businesses continue to be important in India’s agricultural future, investors should take into account not only their present returns but also their dedication to sustainability and technological innovation.
