Best Fertilizer Stocks in India 2024

The Indian economy is ranked as the world’s 5th largest economy in terms of GDP with USD 3,942 billion. In Indian economy agriculture sector contribute 18% -19%. For that fertiliser industry plays a vital role in boosting agriculture sector.  As it provides the required nutrients and assists the crops to grow big and strong. India government is actively investing in fertiliser sector. In this blog we are going to discuss best fertilizer stocks in India.

 

In the Union budget for 2024, the government allocated Rs.164000 crore to the fertilizer sector. This led to an 8% increase in fertilizer company stocks. However, when compared to previous years, the government has been consistently reducing the budget for fertilizers. In the 2023-24 budget, the Revised Estimates amount was ₹1,88,947.29 crore, and the actual expenditure incurred in 2022 was ₹2,51,369.18 crore.

 

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Overview of the Indian fertilizer Industry

Being an agriculture country, India hosts numerous small farmers around the country with small pieces of land on which crops are sown year by year leading to gradual decrease in soil fertility which is why the use of fertilizers has become prominent across the country by farmers.

 

The Indian government also understands the importance of fertilizers and therefore they are also playing their part by making fertilisers more affordable for the farmers. If we talk about statistics then the Indian fertilizer market touched the INR 942.1 billion mark in 2023 and is expected to reach INR 1,383.3 billion by 2032 which means that it will grow at a CAGR of 4.2 during the period 2023 to 2032.

 

As the population is increasing rapidly and the economy is gradually shifting towards being a service based economy there will be an increasing demand for fertilizers to grow crops and also processed based foods. At the same time, New technology is making fertilizers more efficient and effective, helping farmers get the most out of their crops.

 

 

Top fertilizer stocks in India to invest in 2024

With the anticipated growth in the Indian fertilizer industry over the next few years, here is the list of top Indian fertilizer stocks where you can invest in 2024: before investing in these stocks it is important to know important ratio in stock market.

 

S.No	Company Name	Last Price	52 wk High	52 wk Low	Market Cap (Rs. cr)
1	Fert and Chem Travan Limited	976	1187	506	63,112
2	Coromandel International	1659	1789	1019	48,881
3	Tata Chemicals Limited	1024	1349	933	26,152
4	Chambal Fertilizers limited	481	574	263	19319
5	Rashtriya Chemicals and Fertilizers Limited	185	245	117	10,250
6	GNFC	646	814	590	9,499
7	GSFC	218	322	166	8700
8	Deepak Fertilizers	977	1124	450	12320

 

 

1) Fert and Chem Travan Limited

Fertilizers and Chemicals Travancore Limited was incorporated in 1943 and was the country’s biggest fertilizers factory. The company provides its offerings in broadly three different segments:

• Fertilizers: In this segment, it offers all sorts of fertilisers such as straight fertilisers, complex fertilisers, bio-fertilizers, imported fertilisers, organic fertilisers and bagged gypsum to provide nutrients for plants to thrive.
• Caprolactam: This is used by the company to make nylon clothes and car tires for usage of mainly textile and automobile sectors.
• By-products: It constitutes products like nhydrous ammonia, cyclohexanone, coloured ammonium sulphate, soda ash, cyclohexane, nitric acid, gypsum and sulphuric acid. 

 

 

2). Coromandel International

Coromandel International is another prominent name in the fertilizers industry which came into being in the year 1906. The company has a legacy behind it and engages in manufacturing and trading farm inputs like fertilisers, specialty nutrients, crop protection solutions and organic compost. 

The company sells their products under different brands such as Grosmart, Gromor 15-15-15-09, GroShakti Plus, Godavari Ultra DAP, Paramfos, Gromor MOP, Godavari DAP and Gromor Urea. The company has brought repute for itself for being the largest producer of neem pesticides in the world and at the same time is an renowned marketer of organic fertilizers.

 

 

3) Tata Chemicals Limited

Tata Chemicals Limited was formed in 1939 and it primarily engages in the manufacture and export of basic chemistry and specialty products. Tata Chemicals boasts of being the third-largest soda ash producer across the world. When it comes to the soda ash industry Tata has a stronghold in India, North America, Europe and Africa. Tata’s business vertical is segmented into two vertices:

1. Basic chemistry: In this industry, Tata provides inorganic chemistry solutions to various companies related to different sectors such as glass, detergents, pharma, biscuit manufacturing, bakeries, and other industries.
2. Speciality Chemistry: This segment consists of Agro Sciences, Nutritional sciences and Material sciences. 

 

 

4) Chambal Fertilizers limited

Chambal Fertilizers is one of the leading names in the fertilizers industry and constitutes around 13% of the urea produced across the country. The company primarily deals in the production of urea and the marketing of fertilizers and agricultural products. 

The agriculture products marketed by the company comprises of ammonium phosphate sulphate (APS), muriate of potash (MOP), di-ammonium phosphate (DAP), phosphorous, and potassium (NPK) fertilisers, sulphur, micronutrients and agrochemicals that are nitrogens of different grades. The company also has different subsidiaries under it: Chambal Infrastructure Ventures Limited, CFCL Ventures Limited, ISG Novasoft Technologies Limited and ISGN Corporation.

 

 

5) Rashtriya Chemicals and Fertilizers Limited (RCFL)

RCFL is a government-owned fertilizer company where 75% of the stake in the company is held by the government of India. Company is engaged in manufacturing and marketing of fertilizers and industrial chemicals. The company was conferred with the Navratna status by the GOI in 2023. The business of the company is divided into two divisions: 

1. Fertilizers: In this segment, the company deals in the manufacturing of urea, biofertilizers and Micro-Nutrients with brand names Ujwala, Suphala, Biola and Microla.
2. Trading: Here the company engages in the import of fertiliser products such as DAP, MOP and Imp NPK etc.

 

 

6) GNFC

GNFC is a legacy name in the fertilizers industry. Formed in 1976, the company mainly deals in manufacturing and selling fertilizers, industrial chemical products, and offers Information Technology services. The company runs from India and has multiple business segments for different products such as fertilisers, chemicals, FMCG products and others.

Different chemicals come out from the chemical segment of the company like ormic acid, ethyl acetate, methanol, concentrated nitric acid, technical grade urea, toluene di-isocyanate, aniline, weak nitric acid, etc whereas its IT sector provides technical services such as software application development, data centre, cloud computing, e-procurement, blockchain technology,  e-governance solutions, CCTV surveillance systems and more.

 

 

7) GSFC

GSFC also known as the Gujarat State Fertilisers & Chemicals Limited came into being in the year 1962, and since then it has made a name for itself in the fertilizers industry. With its base setup in India, the company’s primary role is to manufacture fertilizers and chemicals. The company functions broadly under two main segments:

1. Fertilizers
2. Industry products 

Ammonium phosphate sulphate, urea, di-ammonium phosphate, ammonium sulphate, NPK(10:26:26), Boronated NPK (12:32:16), gypsum, etc. are some of the prominent chemicals manufactured by the company. On the other hand, on the industrial sector front, it produces micronutrients, organic products, water-soluble fertilisers, plant tissue culture, sulphur-based products, soil conditioners, plant growth promoters and seeds.

 

 

8) Deepak Fertilizers and Petrochemicals Corp Limited

Deepak Fertilizers and Petrochemicals Corp Limited was formed in the year 1979 and deals in fertlizers, agri services, bulk chemicals, mining chemicals and real estate. It is a prominent name in growth, from making fertilizers for farms and special chemicals for factories to offering solutions for healthier crops. The company was also involved in building a giant mall which was dedicated to home design!.To stay ahead of the curve, they're investing in new technology like cloud computing and mobile apps.

 

You should also need to know Deepak Fertilizers, a subsidiary of Deepak Nitrite, which is known for being one of the top monopoly stocks in India. The company is involved in chemical manufacturing and is located in Gujarat. It holds a 75% market share in sodium nitrite, sodium nitrate, and nitroToluenes in India.

 

 

FAQ

 

Ques 1. Which govt fertilizer stocks are listed in India?

Ans. Here is the list of govt fertilizer stocks listed in India

S.No	Company Name	Last Price	52 wk High	52 wk Low	Market Cap (Rs. Cr)
1	Rashtriya Chemicals and Fertilizers Limited (RCF)	185	245	117	10243
2	National Fertilizers Limited (NFL)	128	169	65	6291
3	The Fertilizers and Chemicals Travancore Limited (FACT)	976	1187	506	63,112
4	Madras Fertilizers Limited	105	134	72	1703

 

 

Ques 2. list of the best fertilizer stocks that pay dividends?

Ans. Here is the list of best dividend paid fertilizer stocks:

S.No	Company Name	Dividend yield	Last Price	Market Cap (Rs. cr)
1	GNFC	2.55%	646	9,499
2	GSFC	1.85%	218	8700
3	Chambal Fertilizers limited	1.54%	481	19319
4	Tata Chemicals Limited	1.48%	1024	26,152
5	Deepak Fertilizers	0.86%	977	12320
6	Rashtriya Chemicals and Fertilizers Limited (RCF)	0.67%	185	10243
7	Rashtriya Chemicals and Fertilizers Limited	0.67%	185	10,250