India's agriculture sector plays a crucial role in the economy, and investing in agriculture stocks can offer promising returns. Among the vast array of options available in the stock market, some companies stand out due to their strong financial performance, stable growth, and potential for future gains. Here’s a closer look at the top agriculture stocks in India that are worth considering for investment in 2024.
1. Coromandel International Ltd
Coromandel International Ltd is another standout in the agriculture sector, having generated an impressive ₹29,466.93 crore in revenue over the past year. The company has exhibited an outstanding 55% annual revenue growth, with a commendable pre-tax margin of 9%. Coromandel's exceptional ROE of 25% further highlights its financial strength. As one of the top 100 agriculture companies in India, Coromandel International is a strong contender for stock market investments, offering robust growth prospects for investors.
2. UPL Ltd
UPL Ltd, a global leader in agrochemicals, reported an operating revenue of ₹49,381.00 crore in the last 12 months, reflecting a solid 16% annual growth rate. With a respectable pre-tax margin of 9% and an ROE of 13%, UPL continues to be a reliable performer in the agriculture sector. However, it is worth noting that UPL's debt-to-equity ratio is on the higher side at 75%. Despite this, UPL remains one of the best agriculture stocks in India, particularly for those interested in the organic crop segment.
3. PI Industries Ltd
PI Industries Ltd has consistently proven its mettle in the agricultural sector with an impressive operating revenue of ₹7,206.10 crore in the past year. The company has shown a significant 23% annual revenue growth, supported by a solid pre-tax margin of 22%. PI Industries also boasts an exceptional Return on Equity (ROE) of 17%. Notably, the company is debt-free, maintaining a robust balance sheet that ensures stable earnings growth regardless of market cycles. This strong financial footing positions PI Industries among the top agriculture stocks in India for 2024, making it a wise choice for investors seeking stability and consistent returns.
4. Bayer CropScience Ltd
Bayer CropScience Ltd, a global leader in agricultural inputs, has demonstrated strong financial performance with an operating revenue of ₹5,377.20 crore over the last year. The company’s revenue growth rate stands at 9%, supported by a robust pre-tax margin of 19% and an exceptional ROE of 27%. Importantly, Bayer CropScience is debt-free, ensuring stable earnings growth even during challenging market conditions. This makes Bayer CropScience one of the top agriculture companies in India for stock market investment in 2024.
5. Sumitomo Chemical India Ltd
Sumitomo Chemical India Ltd is a key player in the agrochemical sector, with an impressive operating revenue of ₹3,032.95 crore in the past year. The company has achieved a commendable 15% annual growth rate, coupled with a noteworthy pre-tax margin of 19% and an ROE of 21%. Sumitomo Chemical India’s debt-free status and strong balance sheet contribute to its consistent earnings growth, making it one of the best agri stocks in India for 2024.
6. Chambal Fertilizers Ltd
Chambal Fertilizers Ltd has shown remarkable financial performance, generating ₹22,869.68 crore in operating revenue over the past year, reflecting a significant 73% annual growth rate. While the pre-tax margin is satisfactory at 5%, the ROE stands at a commendable 14%. With a reasonable debt-to-equity ratio of 25%, Chambal Fertilizers maintains a strong balance sheet, making it one of the top food sector stocks in India.
7. BASF India Ltd
BASF India Ltd, a subsidiary of the global chemical giant BASF, reported an operating revenue of ₹13,256.24 crore in the last 12 months. Although the annual revenue growth of 4% could be higher, the company’s pre-tax margin stands at 4%, and the ROE is commendable at 14%. BASF India’s debt-free status and robust balance sheet ensure consistent earnings growth, making it a reliable agriculture stock for long-term investors.
8. Gujarat Narmada Valley Fertilizers & Chemicals Ltd
Gujarat Narmada Valley Fertilizers & Chemicals Ltd has delivered strong financial results, with an operating revenue of ₹8,676.00 crore in the last 12 months. The company’s annual revenue growth rate of 20%, coupled with a pre-tax margin of 19% and an ROE of 16%, highlights its robust financial performance. Being debt-free with a solid balance sheet, Gujarat Narmada is well-positioned to sustain stable earnings growth, making it a top pick in the agriculture sector.
9. Fertilizers & Chemicals Travancore Ltd
Fertilizers & Chemicals Travancore Ltd (FACT) has achieved robust financial growth, with an operating revenue of ₹5,866.56 crore in the last 12 months. The company’s impressive 39% annual growth, coupled with a healthy pre-tax margin of 10% and an exceptional ROE of 48%, underscores its financial strength. FACT’s debt-free status and strong balance sheet support its stable earnings growth, making it a top agriculture stock to consider for 2024.
10. Bombay Burmah Trading Corporation Ltd
Bombay Burmah Trading Corporation Ltd, a diversified company with interests in plantations, achieved an operating revenue of ₹17,000.79 crore in the past year, reflecting a 15% annual growth rate. However, the company’s pre-tax margin is moderate at 7%, and the ROE is notably negative at -36.90%, indicating room for improvement. Additionally, the company’s high debt-to-equity ratio of 106% raises concerns. While Bombay Burmah has potential, investors should be cautious and consider the risks associated with its financial performance.
Investing in agriculture stocks can be a rewarding strategy, especially when choosing companies with strong financials and growth potential. The stocks mentioned above represent some of the best opportunities in India’s agriculture sector for 2024. However, investors should conduct thorough research and consider their risk tolerance before making any investment decisions.
(Disclaimer: The information provided above is based on data compiled from various sources. Accuracy is not guaranteed. Readers are advised to consult a financial advisor before making any investment decisions.)
