Best Agriculture Stocks to Buy in India 2023

Unquestionably, one of the most vital sectors of the Indian economy is the agricultural one. According to Inc42, the Indian agricultural sector will grow to a value of US$24 billion by the next couple of years, providing a fantastic opportunity for investors.

Here is a list of agriculture stocks in India to look at for buying in 2023.

Best Agriculture Stocks in India

Factors to Consider Before Investing in Agriculture Stocks in India

Before investing in any company listed under agriculture or any other agriculture-related stocks, keep the following things in mind:

• Evaluating the Company's Product Line

Investors need to be mindful of the numerous product categories the company offers. The justification is that a business with a wide range of products has a better chance of generating higher sales.

For instance, the sales of the other products make up for a drop in the revenues of one product. This results in a higher cumulative profit margin for the company. As a result, this makes the business a good choice for investors.

• Evaluating the Financial Health of Agricultural Stocks

Before purchasing Indian agricultural stocks, investors should evaluate the company's financial stability.

It determines the company's expansion and long-term viability. By looking at the company's returns, particularly during the off-season, investors can gauge its financial health.

• Identifying the Company's Position

Before purchasing agricultural stocks in India, an investor should know the company's location. The reason is that the sales of agricultural or related businesses are impacted by the various seasons.

For example, if a particular area experiences little rainfall, the yield affects the company's sales. It is, therefore, necessary to invest in businesses whose revenues are unaffected by poor harvests.

On the contrary, a business operating in several cities and several markets makes more money. For example, if the company's specific location experiences a decline in sales, it could boost sales across other states.

• Scope of Investing in Agriculture Stocks

Typically, domestic consumption depends heavily on agriculture and related activities.

India has significantly increased its agricultural production in terms of variety and volume to guarantee food security and a fair share of exports, and, as a result, the expansion of the agribusiness industry has been significantly impacted by changes in the agricultural sector, which makes India one of the world's largest consumers of agrochemical goods.

Overview of the Best Agri Stocks in India in 2023

1) UPL Ltd.

UPL Limited is an India-based company that provides crop protection solutions. The Company is engaged in the business of agrochemicals, industrial chemicals, chemical intermediates and speciality chemicals.

The Company's segments include Agro activity and Non-Agro activity.

2) PI Industries Ltd.

PI Industries Limited is a holding company. The Company is engaged in the manufacturing and distribution of agrochemicals. It operates through the Agro-Chemicals segment.

The Company has two product categories: agrochemical products and speciality products.

3) Coromandel International Ltd.

Coromandel International Limited is engaged in the manufacturing and trading of farm inputs consisting of fertilizers, crop protection, speciality nutrients, and organic compost.

The Company's segments include Nutrient and other allied businesses and Crop Protection.

4) Bayer CropScience Ltd.

Bayer CropScience Limited is engaged in manufacturing, selling and distributing insecticides, fungicides, herbicides, and other agrochemical products and corn seeds.

The Company operates through the Agri Care segment. In addition, the Company offers various pest management solutions, such as Professional Pest Management for household/structural pests and Vector Management for pests that threaten public health.

5) Sumitomo Chemical India Ltd.

Sumitomo Chemical India Limited is an India-based company primarily manufacturing and selling household insecticides, agricultural pesticides, public health insecticides, and animal nutrition products.

The Company operates through the Agro-Chemicals segment. The Company serves markets including North America, Latin America, Europe, Asia, Australia, Africa, and India.

6) Chambal Fertilizers Ltd.

Chambal Fertilisers and Chemicals Limited is an India-based company that produces urea in its three plants located at Gadepan in the Kota district of Rajasthan.

The Company is also engaged in the marketing of other fertilizers and agri-inputs, such as di-ammonium phosphate (DAP), muriate of potash (MOP), ammonium phosphate sulfate (APS), different grades of nitrogen, phosphorous, and potassium (NPK) fertilizers, sulfur, micronutrients, and agrochemicals.

7) BASF India Ltd.

BASF India Limited is an India-based company primarily manufacturing and selling chemicals and chemical products. The Company's segments include Agricultural Solutions, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Chemicals.

8) Gujarat Narmada Valley Fertilizers Chemicals Ltd.

Gujarat Narmada Valley Fertilizers & Chemicals Limited is engaged in the manufacturing and selling of fertilizers and industrial chemical products and provides information technology (IT) services.

9) Fertilizers & Chemicals Travancore Ltd.

The Fertilisers and Chemicals Travancore Limited manufactures complex fertilizers and ammonium sulfate. The Company's segments include Fertiliser, Petrochemicals and Others.

10) Bombay Burmah Trading Corporation Ltd.

The Bombay Burmah Trading Corporation, Limited is an India-based company that provides tea, coffee, auto electric components, and dental products.

The Company operates in four segments: Plantation, Health Care, Auto Electric Components, and Investments.

Conclusion

With favourable projections suggesting that the agricultural sector in India is set to expand in the next few years, investors may consider investing in agriculture-related stocks. While the above agriculture share list mentions a few leading companies in this industry, many others exist. So before investing, check the fundamentals, past performance, and other financial factors.

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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Research Analyst - Bavadharini KS