Best Fertilizers Stocks in India

12 January 2023
4 min read

The agricultural and fertilizer industry in India is one of the largest in the world. It accounts for about 15% of India's GDP, and over 70% of the output comes from small-scale farmers. The sector employs about 1.97 million people, accounting for 6% of total employment in India.

The key players in this industry are large multinationals like Monsanto and others that are operating with high levels of input costs due to the high cost of land acquisition and cultivation practices. The state governments have also been heavily involved in promoting public-private partnerships (PPPs) as an alternative to attract foreign investment into the sector.

The government has recently announced plans to increase its focus on industrialization through initiatives such as increasing import duty on fertilizers, increasing subsidies on hybrid seeds and organic fertilizers, providing incentives to farmers who adopt new technologies like biogas digesters or solar-powered irrigation pumps, etc., among others.

Top Fertilizer Stocks to Buy in India 2023

S.No.

Best Fertilizer Stocks in India

1.

Coromandel International Limited

2.

Chambal Fertilisers and Chemicals Limited

3.

Gujarat Narmada Valley Fertilizers & Chemicals Limited

4.

Deepak Fertilisers and Petrochemicals Corporation Limited

5.

Fertilizers And Chemicals Travancore Limited

6.

Tata Chemicals Limited

7.

National Fertilizers Limited (NFL)

8.

Rashtriya Chemicals and Fertilizers Limited

Factors to Consider Before Investing in Fertilizer Stocks

In India, the fertilizer sector is a diverse one that has seen some ups and downs in recent years. However, there are still opportunities for investors to make money from this sector by investing in fertilizer stocks India.

Let us see the factors you should consider when deciding whether or not to invest in fertilizer stocks in India-

  • Sector Overview

The fertilizer sector is a highly competitive industry, and many companies are competing for market share. The market has been growing steadily in recent years, but it is still relatively small compared to other industries.

  • Market Size

Fertilizer stocks have been gaining popularity among investors as the industry continues to grow and expand its reach into new markets around the globe.

Fertilizer companies have been able to increase their market share by offering innovative products that offer improved performance over traditional alternatives (such as plant growth hormones).

  • Company’s Present Status

The next thing to consider before investing in fertilizer stocks is to know the present status of the company. This will help you determine whether it is a good investment or not. A good company has a strong brand and also has a positive reputation. It is important for investors to learn about all aspects of a company before deciding to invest in it.

  • Future Prospects

The last factor that you should consider before investing in fertilizer stocks is their future prospects. This can help you decide whether this is the right time for you to start investing in fertilizer stocks or not. You can also get insights from experts who can help you make an informed decision about your investments.

Best Fertilizer Stocks: Overview

1) Coromandel International Limited

Coromandel International was started in the early 1960s by IMC and Chevron Companies of the USA and India’s EID Parry. The company is headquartered in Hyderabad and is a manufacturer of fertilizers, pesticides, and speciality nutrients.

2) Chambal Fertilisers and Chemicals Limited

Chambal Fertilizers and Chemicals is based in Kota, Rajasthan. It was founded in 1985 by the KK Birla Group and is one of the largest manufacturers of Urea in the private sector. 

3) Gujarat Narmada Valley Fertilizers & Chemicals Limited

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) was founded in 1976. The company is a joint sector enterprise promoted by the Gujarat State Investments (GSIL), a Government of Gujarat undertaking, and the Gujarat State Fertilizers & Chemicals (GSFC). It is also one of the best fertilizer stocks in India.

4) Deepak Fertilisers and Petrochemicals Corporation Limited

Deepak Fertilisers and Petrochemicals Corporation Limited is a holding company. The Company is engaged in the business of fertilizers, Agri services, bulk chemicals, mining chemicals, and value-added real estate. The Company’s segments include Chemicals, Bulk Fertilisers, Realty, and windmills.

Its Chemicals segment offers products, such as ammonia, methanol, dilute nitric acid, concentrated nitric acid, carbon dioxide (CO2), technical ammonium nitrate, isopropyl alcohol, propane, bulk, and speciality chemical. 

5) Fertilizers And Chemicals Travancore Limited

The Fertilisers and Chemicals Travancore (FACT), one of the most popular and the best fertilizer stock in India, is a government-owned company under the ownership of the Ministry of Chemicals and Fertilizers, Government of India. It is headquartered in Kochi, Kerala, and was founded in 1943.

Conclusion

Not all fertilizers are created alike. Some of these stocks would probably be a bit more appealing than others, depending on the above-mentioned fertilizer stocks list considerations. If you're looking to get into fertilizers and are eager to see what companies stand out, here's an excellent place to start your search. Good luck!

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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