Best Fertilizer Stocks in India in September 2024- 5-yr CAGR Basis

As a major agricultural country, India has a high demand for fertilizers due to widespread crop cultivation. Fertilizer companies support the agricultural industry by providing essential nutrients to the soil. Urea, DAP, and complex fertilizers dominate the market, which has seen significant growth thanks to strong government support and the entry of private players. Let’s look at the best fertilizer stocks in India in September 2024 based on the 5-year CAGR.

What Are Fertilizer Stocks?

Stocks in the Fertilizer sector refer to companies’ shares in producing, manufacturing, or distributing fertilizers. These publicly listed fertilizer companies in India make and sell various types of fertilizers, such as nitrogen, phosphate, and potash-based products, along with other agricultural inputs.

Best Fertilizer Stocks In India In September 2024 – 5-Yr CAGR Basis

Note: The best fertilizer stocks list has been selected from the Nifty 500 universe and sorted based on 5-yr CAGR and as of September 09, 2024.

Overview Of Best Fertilizer Stocks In India

1. Fertilizers & Chemicals Travancore Ltd

Fertilizers & Chemicals Travancore Ltd (FACT) manufactures and sells a variety of fertilizers, by-products, and Caprolactam. FACT produces a range of fertilizers, including complex fertilizers (Factamfos), straight fertilizers (Ammonium Sulphate), organic fertilizers, bio-fertilizers, and imported fertilizers (Muriate of Potash). Additionally, it produces bagged gypsum and Caprolactam, which are used to make items like nylon tyre cords, nylon filament yarn, and engineering plastics.

For the quarter ending June 2024, Fertilizers & Chemicals Travancore Ltd (FACT) reported a net loss of ₹48.7 crore, a sharp decline from the ₹71.8 crore profit recorded in the same quarter last year. The company’s revenue for the period stood at ₹599.6 crore, down 51.4% compared to ₹1,232.6 crore in the previous year.

Key metrics: 

• Earning per share (EPS): NA
• Return on equity (ROE): 35.77%

2. Deepak Fertilisers and Petrochemicals Corporation Ltd

Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) is a major producer of fertilizers and industrial chemicals. It is a top producer of industrial chemicals in India. The company focuses on making high-quality chemicals that meet both domestic and international standards. Their product range includes Isopropyl Alcohol (IPA), Nitric Acid, Methanol, and Liquid Carbon Dioxide.

For the quarter ended June 2024, the company’s revenue increased to ₹452.16 crore from ₹442.76 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹71.34 crore from ₹112.34 crore in the previous quarter. 

Key metrics: 

• EPS: ₹23.03
• ROE: 9.16%

3. Rashtriya Chemicals and Fertilisers Ltd

Rashtriya Chemicals and Fertilisers Ltd  (RCF) is an Indian producer of chemicals and fertilizers, established in 1978 and operated by the Ministry of Chemicals and Fertilizers. The company makes a variety of products, including complex fertilizers, urea, bio-fertilizers, micro-nutrients, and soil conditioners from its plants in Trombay, Mumbai, and Thal, Raigad district. In addition to fertilizers, RCF also produces a range of industrial chemicals used in making leather, pharmaceuticals, solvents, dyes, and more.

For the quarter ended June 2024, the company’s revenue increased to ₹4,396.06 crore from ₹3,879.65 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹10.73 crore from ₹97.65 crore in the previous quarter. 

Key metrics: 

• EPS: ₹3.09
• ROE: 3.69%

4. Coromandel International Ltd

Coromandel International Ltd is a major agri solutions provider in India, offering a wide range of products and services throughout the farming value chain. The company specialises in fertilizers, crop protection, bio-pesticides, speciality nutrients, and organic fertilizers. Coromandel sells various types of phosphatic fertilizers in India and holds about a 40% share in unique-grade fertilizer sales. The company is a key player in Andhra Pradesh and Telangana, the largest market for complex fertilizers in India.

For the quarter ended June 2024, the company’s revenue increased to ₹4,713.30 crore from ₹3,899.84 crore in the preceding quarter. Meanwhile, the net profit increased to ₹330.96 crore from ₹209.46 crore in the previous quarter. 

Key metrics: 

• EPS: ₹52.46
• ROE: 16.43%

5. Gujarat Narmada Valley Fertilizers & Chemicals Limited

Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) is a joint venture established by the Gujarat State Investments Limited (GSIL), a Government of Gujarat entity, and Gujarat State Fertilizers & Chemicals Ltd. (GSFC). GNFC mainly focuses on industrial chemicals and fertilizers, with a smaller presence in IT services. Its chemical division offers a range of bulk chemicals used to produce speciality chemicals and various end products for different industries.

For the quarter ended June 2024, the company’s revenue decreased to ₹2,021.00 crore from ₹2,110.00 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹115.00 crore from ₹127.00 crore in the previous quarter. 

Key metrics: 

• EPS: ₹35.05
• ROE: 6.28%

Indian Fertilizer Industry’s Growth and Government Initiatives

The Indian fertilizer industry is set to grow significantly, projected to reach ₹1.38 lakh crore (US$ 16.58 billion) by 2032, with an annual growth rate of 4.2% from 2024 to 2032, according to IMARC Group. In 2023, the market was valued at ₹94,210 crore (US$ 11.32 billion), driven by rising agricultural needs and strategic government policies. Fertilizer production reached 45.2 million tonnes in FY24, reflecting these successful initiatives. 

As the world’s second-largest producer of fruits and vegetables, India benefits from programs like PM-KISAN and PM-Garib Kalyan Yojana, which improve farmers’ financial health and encourage fertilizer investments, with support from the United Nations Development Programme (UNDP) for enhancing food security.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.