Agriculture is rightly called the backbone of India. Besides offering food security and feeding 140+ crore people, it’s also one of the most vital sectors of the Indian economy, providing employment, export earnings, and contributing 18.1 percent of GDP.
The Agriculture sector is projected to grow and reach US$24 billion in a few years, providing great opportunities for investors. But how do you choose the best agriculture stocks to invest in?
There are many factors to consider, such as the company’s product line, financial health, and brand growth history. So here’s a list of 10 agriculture stocks in India based on their market capitalization and performance,
| Name | Market Cap (in Rs. Cr) | Close price (28th Feb ’24) | 1Yr Returns | Annualised 5Y Returns |
| UPL Ltd | 35710 | 476 | -34.40% | -2.01% |
| PI Industries Ltd | 55107 | 3632 | 9.94% | 32.30% |
| Coromandel International Ltd | 30,824 | 1047 | 21.20% | 21.20% |
| Bayer CropScience Ltd | 25,638 | 5705 | 36.60% | 7.34% |
| Sumitomo Chemical India Ltd (Listed since 2020) | 18,730 | 375 | -20.50% | – |
| BASF India Ltd | 14,273 | 3297 | 40.80% | 20.90% |
| Gujarat State Fertilizers and Chemicals Ltd | 8,715 | 219 | 83% | 21.40% |
| Fertilizers And Chemicals Travancore Ltd | 47,948 | 741 | 245% | 92.40% |
| Bombay Burmah Trading Corporation Ltd | 11,659 | 1671 | 98.80% | 8.06% |
| Gujarat Narmada Valley Fertilizers | 9,528 | 648 | 21.70% | 21.70% |
1. UPL Ltd. (NSE: UPL)
UPL Ltd. tops the list of Agriculture stocks in India. This India-based company provides crop protection solutions, including seeds, pesticides, herbicides, fungicides, and bio-solutions. It has a global presence in over 140 countries, with multiple manufacturing facilities and R&D centers. The largest agrochemical company in India is also the fifth-largest in the world.
Last financial year may not have been great for UPL as their stocks have dropped by 29%, but historically, the brand has provided growth and good return on investment. UPL has a strong product portfolio, diversified revenue streams, a robust distribution network, and 55 years of experience.
2. PI Industries Ltd. (NSE: PIIND)
Another Agriculture stocks in India, PI, operates in two segments: agri-sciences and custom synthesis and manufacturing. The agri-sciences segment offers crop protection, specialty plant nutrition, and organic products. The custom synthesis and manufacturing segment provides contract research and manufacturing services for global agrochemical, pharmaceutical, and specialty chemical companies. The stock has grown by 293% in five years, with steady growth and upward trends.
3. Coromandel International Ltd. (NSE: COROMANDEL)
Again, an India-based company operates in four segments: fertilizers, crop protection, specialty nutrients, and organic compost. The fertilizers segment produces and markets di-ammonium phosphate (DAP), single super phosphate (SSP), and complex fertilizers. The crop protection segment offers insecticides, fungicides, herbicides, and plant growth regulators.
The specialty nutrients segment provides water-soluble fertilizers, micronutrients, and bio-stimulants. Their organic compost segment produces and sells city compost and vermicompost. In the last year, the stock prices of Coromandel International Ltd. have grown by 17.22%, from Rs 854 to Rs 1,049, all thanks to 63 years of experience.
4. Bayer CropScience Ltd. (NSE: BAYERCROP)
Unlike the previous options, Bayer CropScience is a fairly new agriculture stocks company listed in 2010. Showing a 35% growth in stock prices, Bayer CropScience is a global life science company with three segments: crop protection, environmental science, and seeds.
The crop protection segment offers herbicides, insecticides, fungicides, and biologics for various crops. The environmental science segment provides products and solutions for professional pest management, vector control, and turf and ornamental care. The seeds segment offers cotton, rice, vegetables, and oilseed hybrid seeds.
5. Sumitomo Chemical India Ltd. (NSE: SUMICHEM)
Sumitomo Chemical India Ltd. operates in crop care and health and environment. The crop care segment offers insecticides, fungicides, herbicides, plant growth regulators, and bio-pesticides for various crops. The health and environment segment provides products and solutions for household insecticides, animal nutrition, and environmental health. It’s a young listing on the stock market with hardly five years of presence on the stock market.
6. BASF India Ltd. (NSE: BASF)
It’s a German-based chemical company with 23.80% stock price growth, operating in four segments: agricultural solutions, performance materials, surface technologies, and nutrition and care. The agricultural solutions segment offers crop protection products. The performance materials segment provides products and solutions for the automotive, construction, packaging, and footwear industries.
The surface technologies segment offers products and solutions for automotive and industrial coatings, catalysts, and battery materials. The nutrition and care segment provides products and solutions for personal care, home care, human nutrition, and animal nutrition.
7. Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (NSE: GNFC)
Gujarat Narmada Valley Fertilizers & Chemicals Ltd. is an India-based company that operates in three segments: fertilizers, chemicals, and others. The former produces and markets urea and ammonium nitrophosphate (ANP). The chemicals segment produces and markets methanol, acetic acid, formic acid, nitric acid, and other chemicals. The other segments include information technology, energy, and biotechnology. The stocks have shown a growth rate of 35.59% since last year.
8. Fertilizers & Chemicals Travancore Ltd. (NSE: FACT)
With a growth of 188% over the last year, another agriculture stocks in India, the Fertilizers & Chemicals Travancore Ltd., operates in fertilizers and petrochemicals. The fertilizers segment produces and markets complex fertilizers, such as factamfos, ammonium sulfate, and bio-fertilizers. The petrochemicals segment produces and markets caprolactam, a raw material for nylon, and its by-products, such as ammonium sulfate and soda ash.
9. Bombay Burmah Trading Corporation Ltd. (NSE: BBTC)
Bombay Burmah Trading Corporation Ltd. is one of the oldest players that was founded in 1863 and has had a growth of 94% since the last year. The company operates in four segments: plantation and horticulture, healthcare, auto electric components, etc. The plantation and horticulture segment produces and markets tea, coffee, and other plantation products. The healthcare segment operates a chain of dental clinics under the brand name Dentzz.
The auto-electric components segment manufactures and markets components such as starter motors, alternators, and wiper systems. The other segment includes investments, real estate, and trading activities.
10. Gujarat State Fertilizers and Chemicals Ltd. (NSE: GSFC)
As the name suggests, it’s a company owned by the Gujarat Government. It operates in fertilizers, industrial products, trading, and other segments. The fertilizers segment produces and markets urea, ammonium sulfate, DAP, and complex fertilizers. The industrial products segment produces and markets caprolactam, nylon-6, melamine, and other chemicals.
The trading segment deals with the import and export of fertilizers and chemicals. The others segment includes engineering services, wind energy, and biotechnology. The stock has proven to be a perfect fit for long-term investment with 3X returns over five years.
With a few key players involved in various segments, agriculture offers growth, innovation, and sustainability opportunities. However, market volatility, weather uncertainties, regulatory changes, and environmental issues are some of the risks and challenges involved one must be wary of.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.