Introduction – Top Fertilizer Companies in India
The most important sector of the Indian economy is the Agriculture sector. It is the source of livelihood for approximately 58% of the Indian workforce population. Rapidly growing population makes it necessary to ensure food security through higher agricultural produce. Thus, agriculture and its allied activities are the key to domestic consumption. The demand for agricultural produce is ever-increasing for domestic use as well as for exports.
The country has increased its agricultural production tremendously by taking steps such as digitization of land records, crop assessment, use of fertilizers and insecticides. Problems such as poor water supply, soil degradation, and scarcity of land available for agricultural activities have made it necessary for farmers to rely on agrochemical products for increasing farm produce. This has made India the biggest consumer of agro-chemical products in the world.
- Top 10 Chemical Stocks in India
Hence, the agriculture sector provides ample of investing opportunities mainly in agro-products and agro-chemicals. Fertilizers are a major product in the agriculture sector and thus makes it a good avenue for investments. In this article, we will discuss the fertilizer stocks in India to help you select the best fertilizer stocks in India for your investment portfolio.
Top 10 Chemical Stocks in India
Let us look at the top fertilizer stocks in India to help us decide which ones to invest in.
|Name of Stock||Ticker (on NSE)||Market Capitalization||Net Profit Margin||ROCE||EPS|
|Coromandel International||COROMANDEL||₹31,606 Cr||7.97%||31.11%||₹52.09|
|Tata Chemicals||TATACHEM||₹28,504 Cr||9.34%||6.55%||₹49.37|
|Chambal Fertilizers||CHAMBLFERT||₹14,271 Cr||7.83%||21.40%||₹37.62|
|Gujarat Narmada Valley Fertilizers & Chemicals||GNFC||₹11,671 Cr||19.71%||24.57%||₹110.05|
|Deepak Fertilizers and Petrochemicals Corporation||DEEPAKFERT||₹10,428 Cr||8.97%||17.95%||₹60.44|
|Fertilisers and Chemicals Travancore||FACT||₹7,535 Cr||7.98%||155.52%||₹5.46|
|Gujarat State Fertilizers & Chemicals||GSFC||₹6,361 Cr||9.89%||10.37%||₹22.55|
|Rashtriya Chemicals and Fertilisers||RCF||₹5,196 Cr||5.33%||16.77%||₹12.34|
|Paradeep Phosphates||PARADEEP||₹4,039 Cr||5.07%||21.56%||₹6.91|
|National Fertilizers||NFL||₹2,440 Cr||0.68%||5.69||₹-1.94|
Coromandel International Ltd, founded in 1961 in Secunderabad, is a subsidiary of EID Parry (India) Ltd that manufactures and sells farm inputs. It has a significant presence in the southern region of the country. It operates in the segments of Nutrient and other allied business, and Crop protection.
Coromandel’s product range includes phosphatic and other fertilizers; single super phosphates; bio pesticide solutions; crop protection products, including herbicides, insecticides, fungicides, and bio products, and plant growth regulators. It also manufactures specialty nutrients like water-soluble and liquid fertilizers, bentonite sulphur, and micronutrients; and organic nutri-booster solutions. Furthermore, it also provides farming services like soil testing, farm mechanization, and crop advisory.
Coromandel produces 22% of the fertilizers in the country and is the top player in the organic manure business. It has manufacturing facilities in Ennore, Vizag, and Kakinada
It is the top fertilizer company in India by market capitalization. The company’s revenue increased by 34.75% and net profit increased by 15.20% in the fiscal year ended 31st March, 2022. The 3 years Net Profit CAGR is 45.56%.
Tata Chemicals Ltd, founded in 1939, is a part of the Tata Group and is the leading manufacturer of urea and phosphatic fertilizers. This makes it one of the top fertilizer stocks in India. Furthermore, the company has two main business verticals: Basic Chemistry and Specialty Chemistry.
The company’s Specialty Chemistry business focuses on Agro Science, Nutritional Science, and Material Science. The products are used for agriculture, animal nutrition, construction (cement), chemical processes, oral care and cosmetics, paints, pharmaceuticals, soaps and detergents, etc. They also find applications in industries such as food, glass, textile, metals, etc. The company has 13 manufacturing plants across the world.
The company’s revenue increased by nearly 24% in the fiscal year ended 31st March, 2022. The 3 years Net Profit CAGR is 5.07%.
Chambal Fertilizers Ltd., founded in 1985, is a producer and marketer of fertilizers and agri-inputs. The company markets its products in 10 states in north, east, west, and central India and supplies its fertilizers to Madhya Pradesh, Rajasthan, Haryana, and Punjab. The company has several subsidiaries including Chambal Infrastructure Ventures Limited, CFCL Ventures Limited, ISG Novasoft Technologies Limited, and ISGN Corporation.
Its fertilizer and agri-input product portfolio includes urea, muriate of potash (MOP), di-ammonium phosphate (DAP), ammonium phosphate sulphate (APS), sulphur, different grades of nitrogen, phosphorous and potassium (NPK) fertilizers, micronutrients and other agrochemicals. It also offers crop protection products such as herbicides, fungicides, and insecticides.
The company’s revenue increased by 26% in the fiscal year ended 31st March, 2022. The 3 years Net Profit CAGR is 64.03%.
Gujarat Narmada Valley Fertilizers & Chemicals
Gujarat Narmada Valley Fertilizers & Chemicals Ltd., founded in 1976, manufactures and sells fertilizers and industrial chemical products. It also provides IT services.
The company markets fertilizers under its brand NARMADA. Its agro-products portfolio includes urea, Neem De-Oiled cake, Ammonium Nitrophosphate, Diammonium Phosphate, Narmada Neem Pesticides, Single Super Phosphate, Muriate of Potash, and City Compost. GNFC also offers industrial chemical products such as Acetic Acid (Glacial), Methanol, Nitrobenzene, Ethyl Acetate, Aniline, Toluene Di-isocyanate and Formic Acid. The IT services provided by the company, under the brand name (n)code solutions, cover System integration, e-Governance Services, e-Procurement services, Cloud Services, Data Centers Services, Time Stamping, and Authentication Services.
The company’s revenue increased by 68.5% in the fiscal year ended 31st March, 2022. The 3 years Net Profit CAGR is 51.62%.
Deepak Fertilizers and Petrochemicals Corporation
Deepak Fertilizers and Petrochemicals Corporation Ltd., founded in 1979, is one of the leading fertilizers and industrial chemicals producer in the country. It has become a multi-product Indian conglomerate that has an annual turnover of more than one billion USD.
It was initially set up as an Ammonia manufacturer and has now expanded its business activities to include farming diagnostics and solutions, and expanded its product portfolio to include industrial chemicals, technical ammonium nitrate, and bulk and specialty fertilizers. The company operates manufacturing facilities in Taloja in Maharashtra, Panipat in Haryana, Srikakulam in A.P., and Dahej in Gujarat. It uses state-of-the-art technologies to manufacture products that meet global quality standards.
The company’s revenue increased by nearly 32% and net profit increased by 69% in the fiscal year ended 31st March, 2022. The 3 years Net Profit CAGR is 199.74%.
Fertilisers and Chemicals Travancore
Fertilisers and Chemicals Travancore Ltd. was incorporated in 1943 as the first large-scale fertilizer plant in the country at Kochi, Kerala. The company is under administrative control of the Department of Fertilizers, Ministry of Chemicals and Fertilizers, Government of India.
The company produces complex fertilizers, organic fertilizers, straight fertilizers, bio fertilizers, imported fertilizers, gypsum, caprolactam, and by products such as nitric acid (55%), anhydrous ammonia, soda ash (off grade), oleum, and sulphuric acid.
The company’s plant in Cochin has a production facility of over 485,000 tons-per-annum (TPA) of complex fertilizer, over 115,200 TPA of phosphoric acid. And approximately 330,000 TPA of sulfuric acid. Whereas, the Udyogmandal plants have an installed capacity of approximately 29,700 tons of Phosphorus pentoxide (P2O5) and 76,050 tons of nitrogen (N).
The company’s revenue increased by nearly 36% in the fiscal year ended 31st March, 2022. The 3 years Net Profit CAGR is 47.16%.
Gujarat State Fertilizers & Chemicals
Gujarat State Fertilizers & Chemicals Ltd., founded in 1962, is an Indian company engaged in the production of fertilizers and industrial chemicals.
The company’s fertilizer products are ammonium sulphate, neem urea, di-ammonium phosphate, nitrogen phosphorus and patadium (NPK), boronated NPK, muriate of potash (MOP), gypsum, ammonium phosphate sulphate, micro mix, and other agro products. Its product range also includes water-soluble fertilizers, seeds, and plant tissue culture.
Besides fertilizers, the company also has industrial chemical products such as nylon-6 (gujlon), caprolactam, technical grade urea, pharma grade ammonium sulphate, pharma grade potassium di-hydrogen phosphate, etc.
The company’s revenue increased by 19% and the net profit has nearly doubled in the fiscal year ended 31st March, 2022. The 3 years Net Profit CAGR is 34.99%.
Rashtriya Chemicals and Fertilisers
Rashtriya Chemicals and Fertilisers Ltd. (commonly known as RCF), founded in 1978, is the leading producer of fertilizers in India. Furthermore, RCF undertakes project management and renders operations and maintenance services to its clients in the fertilizer and chemical industry.
RCF’s major fertilizer brands are Suphala 15:15:15, Suphala 20:20:0, Sujala, Microla, Ujjwala, and Biola. The company also helps to diagnose soil health and evolves soil specific and crop specific solutions. Besides this, the company publishes a monthly farm magazine “Trombay Sheti Patrika”
The company’s revenue increased by nearly 55% and net profit has increased by 83% in the fiscal year ended 31st March, 2022. The 3 years Net Profit CAGR is 121.55%.
Paradeep Phosphates Ltd., founded in 1981 and based in Bhubaneshwar, carries out manufacturing, marketing, and distribution of phosphatic fertilizers and intermediary products. It is a subsidiary of Zuari Maroc Phosphates Ltd. It markets its formulated fertilizers, that cater to a wide range of crops, under the brand name NAVRATNA through private and institutional channels.
The company’s product line includes Di-ammonium phosphate and NPK grade fertilizers; ammonium phosphate sulphate; and muriate of potash, ammonia and sulphuric acid, zypmite, and gypsum. For soil conditioning of alkaline soils and as a supplement for sulphur deficient soils, the company markets its by-product phosphor-gypsum. It also imports and sells a muriate of potash in India. Besides these products, the company is also involved in providing marketing services such as farmers’ meetings, crop seminars, publicity van campaigns, distribution of crop and product literature, training to farmers, and retailers’ meets.
The company’s revenue increased by nearly 52% and net profit increased by nearly 78% in the fiscal year ended 31st March, 2022.
National Fertilizers Ltd., established in 1974 as a public-sector undertaking of the Indian Government, is a major producer of organic and inorganic fertilizers and industrial chemicals in India. It operates five major plants across the country. Administrative control of the company lies with the Department of Fertilizers in the Ministry of Chemicals and Fertilizers. Initially, NFL operated only two plants in Bathinda and Panipat. Later, in 1978, the operations and ownership of the Nangal plant was also transferred to NFL.
The company produces and markets Neem coated Urea and solid and liquid Bio-fertilizers. It also participates in trading of Imported as well as Domestic Fertilizers, Agro Chemicals, Compost, Seeds, and other Agro Products. NFL has three main bio-fertilizers: phosphate solubilizing bacteria (PSB), rhizobium, and azotobacter. Its other fertilizers are di-ammonium phosphate and bentonite sulfur.
The company’s revenue increased by 33% in the fiscal year ended 31st March, 2022. The 3 years Net Profit CAGR is -39.79%.
Above, we have summarized information regarding the best fertilizer stocks in India. The growth shown by the agriculture sectors and the increasing demand for agro products have made it an attractive investment option for investors.
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