Last Updated – December 2021
In this article, we will cover,
– The reasons for investing in agricultural stocks and why this sector presents attractive investment opportunities
– A comprehensive and well-researched list of the best agriculture stocks to buy
– Factors an investor must consider while compiling the list of the best agricultural stocks to buy
– A model portfolio to gain exposure to the best agricultural stocks in the Indian market
– Portfolio companies
– Risks to be acquainted with before investing in agricultural stocks
– A detailed table highlighting the critical factors considered while evaluating the best agriculture stocks to buy
Reasons for investing in Best Agricultural Stocks to Buy
Agriculture is one of the most important sectors of the Indian economy as it means the livelihood of almost 58% of the workforce in India. The sector accounts for approximately 17.8% of India’s Gross Value Added (GVA). The Indian agricultural sector predominantly acts as one of the pillars of the Indian economy and is woven within the very socio-economic framework of India. Naturally, agriculture and other allied activities are key to domestic consumption.
In order to ensure food security and fair share of exports, India has tremendously increased its production in agriculture in variety and volume. And this translates to the change in the agricultural industry significantly impacting the growth of the agrochemical industry, making India one of the biggest consumers of agrochemical products across the globe. The rapidly rising population and ever increasing need for economic growth along with food production are some of the factors contributing to the growth in this industry. In addition to this, encountering various bottlenecks such as soil degradation, dearth of water supply, scarcity of land due to urbanization and so on are what is further driving the farmers to use agrochemicals products in order to sustain.
In Union Budget 2020-21, the government of India made it clear that farmers are at the top of its agenda and broadly spoke on ‘Aspirational India’. Under that, FM Sitharaman announced that the government is committed to doubling farmers’ income by 2022. This has very positive implications for the industry as it provides the necessary push to the agriculture sector. An increase in a farmer’s income will result in the boost of a farmer’s buying power as well as investment towards better harvest production such as better seeds, crop protection products, tractors, irrigation systems, etc. are just a few examples which can further boost not only the output but also a farmer’s disposable personal income. In fact, the central government has pumped about Rs. 131,000 crores into agriculture and related sectors, with a special focus on building an export-oriented economy.
The agriculture sector is one of the most crucial sectors in the country with large headroom for increasing consumption; the sector has demand for proven and time-tested products such as pesticides, tractors and existing irrigation systems among others. There is also room for innovation with the emergence of new and more efficient farming techniques and products such as biologicals, hybrid seeds, organic fertilizers and pesticides, new irrigation techniques and other upcoming products. Hence, the agriculture business is full of investing opportunities. Investors can choose to invest among companies providing agricultural products and services such as fertilizers (nitrogen, phosphate, and potash, with niche categories sprinkled in), pesticides (which protect plants against insects, fungi, weeds, and other nuisances), seeds, crushing and processing, and livestock.
Summary Table of the Best Agricultural Stocks to buy
|Sr. No.||Company Name||BSE Scrip Code||NSE Symbol||CMP (as on June December 10, 2021)||Rating||Industry|
|1||PI Industries Ltd.||523642||PIIND||2915||3||Agrochemicals|
|2||Bharat Rasayan Ltd.||590021||BHARATRAS||10352||0.5||Agrochemicals|
|4||DCM Shriram Ltd.||523367||DCMSHRIRAM||987||0.5||Chemical Manufacturing|
|5||Coromandel International Ltd.||506395||COROMANDEL||760||3||Fertilizers|
|6||Bayer CropScience Ltd.||506285||BAYERCROP||4740||1||Agrochemicals|
|7||Godrej Agrovet Ltd.||540743||GODREJAGRO||541||0.5||Agriculture|
|8||Avanti Feeds Ltd.||512573||AVANTIFEED||542||3||Aquaculture|
|9||Kaveri Seed Company Ltd.||532899||KSCL||510||0.5||Agriculture|
|10||Balrampur Chini Mills Ltd.||500038||BALRAMCHIN||335||0.5||Sugar|
|11||Dalmia Bharat Sugar and Industries Ltd.||500097||DALMIASUG||399||0.5||Sugar|
|12||Tata Consumer Products Ltd.||500800||TATACONSUM||770||1||Coffee and Tea|
Factors an investor should look while compiling the list of best agricultural stocks to buy
- Assess the range of products offered by the company as the agriculture sector utilizes a huge variety of products such as fertilizers for different kinds of soil, pesticides for different species of insects affecting specific types of crop. A wider range of product offering is usually positive as many such products are complementary and can be value additive for the company as it can offer a better product mix to customers and sustain healthy profit margins for the company.
- It is critical to determine the location which the companies serve which can give a good understanding of the way the company is going to do its business. This is critical as seasonality impacts different states and locations differently every year and a company with the right offerings across states not only keeps the revenues consistent for the company, it also helps the company maintain its margins well.
For example, even if one state sees less rainfall in a given year causing low farming activity and hence low sale of agri-products, the company can substitute this loss of sales from other states which saw sufficient rains for farming needs. Having exports can further help a company remove any risk from weather related or economic factors faced by India, which would help the company protect its sales.
- Assess the R&D a company undertakes towards developing new products in the agriculture sector. This is important for a company as the agriculture industry sees some level of dynamism constantly with innovation of new and more efficient farming techniques and better products coming out which can not only give the company a competitive advantage over peers, but also contribute to revenue and margin growth. A metric that investors can assess is the R&D as a % of sales which indicates the scale of R&D a company undertakes towards innovation. While a higher R&D as a % sales is not a true barometer of finding better products, it gives a pretty good idea to investors about the capability of a company to find new products and maintain revenue and margin growth.
- Investors need to assess the capacity and scale a company has to produce its products, production efficiency as well as its distribution channel of the company. A larger capacity and a strong distribution channel allows a company to scale their sales as well witness repeat sales among customers. This is a crucial factor as many smaller companies face distribution issues due to which their products may not reach the right customer, thereby hampering growth of the companies. All the companies selected in the model portfolio have exhibited a strong distribution channel and have effective communication with its customers which allows the companies to offer products as per customer needs and ensure revenue growth.
- Investors also need to assess financial strength to determine the sustainability as well as the growth a company can achieve for investors. This can be done by assessing the return ratios of the company such as Return on Equity (ROE%) and Return on Capital Employed (ROCE%). These ratios are crucial to determine the returns generated by the companies on the capital they have invested in the business. A higher ratio indicates higher return generated by the company for stakeholders which is a positive for investors.
- Investors should also look at the cash flows generated by the company which indicates the tangible returns generated by the company. Investors can assess the Operating Cash Flow/EBITDA which allows investors to ascertain a company’s ability to convert operating profits into operating cash flows. A higher ratio of operating cash flows indicates the tangible returns the company generates while a low ratio may be indicative of aggressive revenue recognition practices.
Also, assess the capital structure of the company to determine the financial obligations of the company and how much of the profits are attributable to the shareholders. To assess this, investors can look at the Debt to Equity ratio of the company. A lower D/E indicates lesser interest obligations and more flexibility for the company to reinvest returns to pursue long term growth or distribute as dividends, either way benefitting the shareholders of the company.
- Investors should also keep an eye out for changes in the regulations surrounding the industry to determine any significant impact on companies. Regulations can include changes in allowable ingredients or chemicals to be used. A company which can dynamically adjusted as such changes can better adopt and remain sustainable for the long term while generating positive returns, thereby benefiting investors.
All in all, Investors are advised to base their selection preferences on strong domestic distribution & farmer connections, balance sheet strength in terms of cash flows and capital structure along with superior raw material security. In addition to this, intermediate suppliers to major global agrochemical companies are better placed due to the resulting rise or shift in outsourcing from China to India, as these companies stand a great chance of increasing market share in such eventualities.
An Investor should cherry pick companies which have visibility in growth and have the ability to come out stronger from any downturns. Other factors such as profit margins, R&D expenditure, revenue growth rate etc. should definitely be checked for investing in an agricultural company. The below mentioned model portfolio includes a good stocks in the Agricultural industry for an investor to include in his portfolio as it checks all the boxes in terms of strengths, consistency in performance and risks.
PI Industries Ltd
PI Industries founded in 1946, is an integrated agrichemicals solution company which currently caters to complex chemistry solutions market in agri and other fine chemicals areas across the world. The company, with three agrochemical formulation plants and five multipurpose plants, is a leading player in the domestic agricultural inputs sector, particularly in the agrochemicals and plant nutrients space. The company’s products include insecticides, fungicides, herbicides and specialty products. It has made its mark in the domestic agricultural inputs and contract manufacturing (CSM) exports segments and is now foraying into pharmaceuticals and specialty chemicals by incorporating a wholly owned subsidiary called PI Health Sciences Ltd. The company aims to establish a differentiated position in the pharma sector by using its core competencies in complex chemistry, operational excellence, technology platforms and global reach through partnerships with large innovators. This foray into pharma expands revenue visibility further and has the potential to diversify its revenue stream to a certain extent. Additionally, the company executed two Joint Venture agreements on October 11, 2021 with Polymath Holdings, LLC for undertaking the business of manufacturing and selling products for Bio Chemistry processes and Bio Chemical enabled pharmaceutical intermediates.
PI Industries’ business profile is backed by product and geographic diversity, especially in the custom synthesis and CSM business. With a solid product line up, supportive policy environment, and normal monsoon, the domestic business (27% of revenues) is also expected to improve over the medium term.
A robust order book of USD 1.5 billion in the CSM segment from the existing product basket, improving contributions from recent new launches in the domestic market along with new molecule additions in both business segments, supports high revenue visibility of sustainable growth in the next 3-4 years. Additionally, demand from agrochemical portfolio is expected to remain healthy in the domestic and European markets which would lead to overall revenue growth of approx. 18-20% for over the medium term. PI Industries is currently in a comfortable financial risk profile and liquidity, following the successful Rs. 2,000 crores equity infusion through QIP route in July 2020. Key risk includes significant moderation in revenue growth and operating profitability due to higher-than-normal time lag in passing on increased raw-material prices and delay in commissioning of projects or execution of orders.
Further, the agrochemical sector remains susceptible to specific and separate registration processes in different countries, and various environmental rules and regulations. Any change in regulatory requirements, such as export and import policies and environmental and safety requirements may impact growth prospects.
UPL Ltd. (UPL) manufactures, markets, and distributes crop protection products, intermediates, specialty chemicals, and other industrial chemicals; and undertakes research in these segments. UPL is known for several acquisitions and strategic alliances to diversify its product profile and increase geographical reach. The group now includes over 200 entities. After Arysta LifeScience’s acquisition, UPL moved up to be the 5th largest crop protection company globally. The company holds the first rank among agrochemical companies in BioSolutions. It is also the largest agrochemical company in India. Revenue base is well diversified, with approximately 69.72% generated from Latin America, Europe, and the US in financial year 2021.
Company’s wider geographical reach has succinctly reduced susceptibility to cyclicality in demand from any one region. Flexible and multi-product manufacturing facilities along with robust supply chain & distribution network have kept UPL’s EBITDA margin intact at 20-22% over the last five years. The management has guided for an EBITDA margin to 24-25% over the next three years. Despite an incredibly tough year, UPL delivered a robust growth in profitability through continuously innovating and transforming.
UPL’s financial risk profile is adequate and supported by material annual operational cash flows and sizeable net worth of Rs. 24,580 crores estimated as on March 31, 2021. Company’s management is committed to reducing debt levels over the medium term.
The company’s net debt (Rs. 18,922 crores as at March 31, 2021) has reduced by Rs. 3,140 crores backed by improvement in working capital management. UPL replaced $500 million of the acquisition loan with a sustainability loan at 30 bps lower interest rate and extended maturity by 2 years. Key risks include escalation in corporate governance issues as the recent whistleblower complaint against the promoters siphoning off funds is a red flag. It would be essential as an investor to keep an eye on this issue as further escalation could lead to value erosion in the stock price. Additionally, any significant decline in revenue and fall in operating profitability would impact the cash generating ability of the company and taint its credit risk profile.
Avanti Feeds Ltd
Avanti Feeds manufactures and sells shrimp feed and exports processed shrimp. It has a total shrimp feed capacity of 600,000 million tonnes per annum (mtpa), of which 60,000 mtpa is in Gujarat and remaining 540,000 mtpa in Andhra Pradesh. Company commands a market share of about 45% in the domestic feed business. Its shrimp processing subsidiary, Avanti Frozen Foods which has an installed capacity of 22,000 mtpa, is one of the leading shrimp exporters in the country. Thai Union holds around 24.21% stake in the company and 40% stake in Avanti Frozen Foods which is among the largest shrimp, fish and pet food manufacturers and processed sea-food producers, with a strong marketing and sales network worldwide across the globe.
This strategic partnership provides Avanti with the technical know-how in feed formulation and shrimp processing, and access to its global marketing network. Avanti Feeds has a healthy cash balance of Rs. 47 crores with minimal debt repayment requirement. Cash flow from operations continued to be robust at Rs. 383 crores owing to increased scale and robust working capital management which is sufficient to fund dividend payments and modest capex requirements.
Revival in shrimp prices in its key market, USA, augurs well for shrimp process/feed business as higher shrimp prices translate to better profitability. Higher volatility in shrimp prices and swings in profitability will affect smaller players in shrimp exports and transfer market share to organized players like Avanti feeds. Increase in customs duty on shrimp feed from 5% to 15% in the Budget FY21-22, will benefit domestic feed manufacturers.
The company is also exposed to raw material risk but has exhibited an ability to manage raw material price volatility effectively.
Balrampur Chini Mills
Balrampur Chini serves in the Indian sugar industry, which is the world’s largest consumer and second largest producer of sugar in the world. Sugar demand is expected to grow on the back of GDP growth, rising disposable incomes and increasing demand for processed foods through modern retail.
The company derives a majority of its revenues from Sugar production of about 78%, followed by Distillery business, which contributes about 14% of the revenues and co-generation which contributes 8% of the revenues. Of the three segments, the Distillery segment generates the highest EBIT margins at 41.3% followed by the Co-generation segment at 12.5% and Sugar segment at 6.2% as of FY21. Due to declining margins from sugar, the company is de-risking by reducing dependance on the sugar business. Balrampur is the second largest sugar manufacturing company in India with a cumulative crushing capacity of 76,500 tonnes of cane per day and distillery capacity of 520 KLPD.
The company crushed 1032.6 lac quintals with sugar production at 109.79 lac quintals in FY21. On the distillery production, the company sold 17.06 crore BL and sold 16.52 crore BL for FY21. The Co-generation segment produced 8,065 lac units of power and sold 4,263 lac units with an average realization of Rs. 3.17/unit for FY21. This resulted in the company generating consolidated revenues of Rs 4,811.66 crore in FY21.
Substantial capacity allows the Company to capitalise on the benefits stemming from economies of scale, comprehensive cane management guide provided to farmers ensures timely supply of superior quality cane and stringent operational control enabled the Company to produce superior variety of sugar and improved the cane handling system facilitating faster cane crushing and lowering turnaround time. This has resulted in stupendous shareholder returns with a RoNW of 19.4% while the ROCE stands at 15.9% as of FY21.
To reduce export dependency for sugar and cut imports of fuels, the government preponed its target of achieving 20% ethanol-blending to 2025 (2030 earlier). With an existing capacity of 520 KLPD and capacity addition of 320 KLPD, Balrampur Chini will have the highest ethanol generating capacity of 840 KLPD. Given a sustained increase in ethanol production and steady growth in sugar, Balrampur Chini is expected to deliver a sustained improvement in revenues and margins.
Decline in sugar production may impact revenue and act as a key risk. Further, any change in government policies related to ethanol blending would impact the profitability of the company. Another crucial factor is the season, since sugarcane is very sensitive to rain; a low volume of rain can affect the harvest and thereby negatively impact the production of sugar as well as distillery products out of sugarcane. Rising input costs and sugarcane costs can also impact the margins earned by the company.
Agrochemicals are chemicals that help boost crop productivity through prevention of destruction of crops by pests such as insects, weeds, fungus, etc. The global economy, in general, and Indian, in particular, is facing a multitude of challenges such as to feed an ever-growing population, reducing arable land bank and dealing with adverse climatic changes. Under such circumstances, the traditional methods of growing more crops are rendered inadequate. There is a growing acceptance to launch advanced agrochemical solutions to achieve higher field productivity. Indian agriculture is on a growth path with an increase in investments and private funding in the past few years. The sector is expected to grow with better momentum in the next few years owing to an increase in investment in agricultural infrastructure such as irrigation facilities, warehousing and cold storage.
Factors such as reduced transaction costs, time, better port gate management and fiscal incentives will also contribute to this upward trend. Furthermore, the increased use of genetically modified crops is also expected to better the yield of Indian farmers. Advancement in agriculture and allied sectors is positive for inclusive economic growth at the national level. India is the largest producer, consumer and importer of pulses in the world. As farmers find themselves in a more comfortable situation, the agriculture sector will gather further momentum. Apart from the loyal customer base that the Company is enjoying since the last several years now, many newer domestic as well as overseas customers are added to the portfolio of the Company during the year & the same is expected to increase in the near future due to Company’s commitment of supplying high quality products in a time bound manner. Moving ahead, the Company remains poised to implement key initiatives across functions to enable itself to face market challenges and leverage the emerging opportunities. It remains focused on improving revenue growth and profitability, driven by high growth segments such as seeds and nutrients.
Bharat Rasayan has delivered strong financial performance over the years while delivering a strong Net Profit growth of 37% CAGR and Sales growth of 19% over the past 5 years. The company has delivered a strong ROE of 25.6%. It has also been growing its operating profit margins from 6% in 2010 to 21.2% currently, driven by cost optimization and operational efficiency. It trades at fair valuations of 29.5x P/E given the strong growth delivered by the company. Despite the strong growth drivers, Indian agrochemicals industry faces challenges in terms of low awareness among a large number of end users spread across the geography. Managing inventory and distribution costs is a challenge for the industry players in the wake of volatility in the business environment.
Bayer CropScience Limited, a subsidiary of Bayer AG, Germany, is a leading player in the Indian agrochemical industry which benefits from healthy relationships with farmers, extensive product portfolio and strong distribution network. The Company’s operations include Crop Protection, Seeds & Traits, Environmental Science and Digital Farming. It has distinguished itself by leveraging proven capabilities in innovation-driven solutions, sophisticated processes and technologies, world-class services, and superior business models.
This can be witnessed by the overall returns in terms of 31.3% ROCE as of FY21. The company has also strengthened its product offering and growth prospects with the merger of Monsanto India Limited into Bayer CropScience Limited. After the merger, Monsanto products are now a part of BCSL’s product portfolio and continue to be marketed under their earlier brand names. The integration brings together two highly complementary businesses creating an innovation engine for Indian agriculture. Indian farmers can benefit from BCSL’s innovative crop protection products and Monsanto’s expertise in seeds and traits and digital farming applications. The Company’s long-term goal is to unlock the growth potential of Indian agriculture as a global producer and exporter of food, feed, and fiber.
Bayer CropScience has collaborated with more than 45 agricultural research universities and institutions for generating data of more than 275 registration trials. This data would help it in securing more product registrations in the years ahead. On financials, the company has given a steady performance, with ROE at 19.1% for FY21. It has generated consistent cash flows with operating cash flows rising from Rs. 206 crores in 2016 to Rs. 687 crores in 2021, thereby growing at a 27.24% CAGR. Bayer is virtually debt free and maintains strong liquidity with cash and cash equivalents at Rs. 1,210 crores as of FY21. The stock also trades at a P/E of 50.7x which indicates a fair valuation for the company.
COVID-19 did not have an adverse impact on the company’s operations, as it falls in the necessary product category, which, in fact, has helped it during the crisis. Further, its Monsanto connection has helped increase its distribution reach, and should add to topline and profitability. The company could also benefit from the nutrient-based subsidy announced by the government recently. Bayer could face a risk from seasonality in India which could affect its growth and sales as a bad year could result in lower demand for fertilisers. The company also faces the risk of farmers not adapting to their hybrid seeds offering, despite them being of high quality.
Coromandel International is one of the leading private sector fertilizer producers in the country with significant presence in South India. They are one of the leading producers of industry leading-grade fertilizers. The country sees 15-25% crop loss due to pests, diseases and inadequate CPC usage and is coupled with the per hectare consumption of agrochemicals in India at just 0.6 kgs as compared to 5-7 kgs in US and 11-12 kgs in Japan. The low CPC (Crop Protection Chemicals) penetration, increasing labour cost and climate change are likely to act as the main growth drivers for CPC in India. With close to 3.5 million-ton capacity of fertilisers, Coromandel accounts for about 22% of the domestic production capacity in India. Manufacturing units are located at Vizag, Kakinada and Ennore.
The plants have the flexibility to produce 13 products from multiple rock and acid combinations. The Company enjoys a considerable market presence in Southern, Eastern and Western regions in the country. Along with this, the company has Retail and Specialty Nutrients businesses which complement its fertilizer business. Specialty nutrients are one of the fastest-growing agri-input segments in India. The business comprises Water-Soluble Fertiliser, Secondary Nutrients and Micronutrients. The company is also the No. 1 organic manure player in India and has the largest rural retail chain across the country.
With a 140% hike in fertilizer subsidy for DAP, margins of the fertilizer business have reverted to Rs. 4,000/tonne. Above normal monsoon augurs well for higher fertilizer demand in the Kharif season. The additional subsidy of Rs. 65,000 crores is used to clear past dues of fertilizer companies and has directly benefited Coromandel with a reduction of such an outstanding amount to Rs. 590 crores in FY21 as against Rs. 2,316 in FY20. A direct impact was seen on the cash flow from operations which now stood at Rs. 4,150 crores in FY21.
The management indicated that the company has Rs. 2000 crores of cash on the books and is looking for inorganics opportunities to fuel growth in the medium term. An acquisition in the CPC space would be positive as the business has high growth potential and also has better margin profile than the fertiliser business.
The primary risk it faces is from environmental hazards wherein its products may contain harmful ingredients which may not only affect the crops, but also humans. Additionally, the company may see lower demand due to poor monsoon or regulatory changes which may impact growth momentum. Adverse variation in raw material prices and delay in the ability to pass on price hikes coupled with adverse currency fluctuations may impact margins.
From the start of 2020, the stock market and the economy have been grappling with the COVID-19 pandemic. Various economies are unsure of the end given the uncertainty in vaccine effectiveness. Never before has the globe witnessed a standstill and without a doubt some sectors will take time to get back to pre-covid levels. But agriculture stands better in order to mitigate the impact. Agricultural and allied sectors as a broader theme may aid to navigate these turbulent times.
Therefore, with agriculture being shielded from COVID-19 to a great extent, the demand for agrochemicals, fertilizers etc. is expected to remain intact for now. While the agriculture sector provides long term growth headroom, the sector is not devoid of risks, some of which are:
Risks to consider before investing in agriculture stocks
- The government may change regulations around the use of certain ingredients and chemicals which may form a critical part of the product offerings of these companies. A change in regulation can severely impact the revenue earned by the company as the product sales would have to be stopped immediately, and the company may need to come up with a new product to replace the existing one. This could entail high research costs, manufacturing costs and opportunity costs for the company as it would not be able to sell existing products. In extreme cases, a product of a competitor may capture the company’s market share thereby impacting the dominance of the company in that product offering.
- The Indian weather has been very volatile in the past with inconsistent rainfalls across different states of India. In the event of rainfall being lower for a particular year, the farming activity might reduce for a particular type of crop or state which would result in lower demand for fertilizers and pesticides for the given year. This could significantly impact the revenues of the company and affect the overall growth rate.
- While innovation has always been beneficial to the economy and the agriculture industry as well, it may not always be beneficial for every company. An example could be where one company produces a particular variant of fertilizer and the innovation of a new and better version of the said fertilizer could hamper sales of the current fertilizer. Also, if the company is not able to come up with its own version of the new fertilizer, a competitor may capture the market share of the company.
- Financial risks could emerge relating to not having sufficient cash to meet expected obligations, generating lower than expected profits and losing market share. Financial risks may also be caused by increased input costs, higher interest rates, excessive borrowing, higher cash obligations, lack of adequate cash or credit reserves, and unfavorable changes in exchange rates in case of imports made by companies.
- Financial risks could emerge relating to not having sufficient cash to meet expected obligations, generating lower than expected profits, and losing market share. Financial risks may also be caused by increased input costs, higher interest rates, excessive borrowing, higher cash obligations, lack of adequate cash or credit reserves, and unfavorable changes in exchange rates in case of imports made by the company to develop its products.
Watch our video on how to analyse and pick Best Agriculture Stocks for investments
If this is a standalone thematic portfolio of only insurance specific stocks, you would need a total of Rs. 39,404/- for this portfolio as of December 10, 2021.
|Company Name||Weightage||CMP (as on December 10, 2021)||Quantity||Total (Rs.)|
|PI Industries Ltd.||21%||2915||3||8745|
|Bharat Rasayan Ltd.||28%||10352||1||10352|
|Coromandel International Ltd.||12%||760||5||3800|
|Bayer CropScience Ltd.||15%||4740||1||4740|
|Avanti Feeds Ltd.||11%||542||7||3794|
|Balrampur Chini Mills Ltd.||7%||335||15||5025|
Detailed overview of the Best Agriculture stocks to buy now in India
The table below covers some of the most important factors while evaluating Best Agriculture stocks such as the return ratios – RoE, operating margins, sales and earning growth, market cap, etc.
|Sr. No.||Company Name||BSE Scrip Code||NSE Symbol||CMP (as on December 10, 2021)||Rating||Industry||Market Cap (in Crs)||Promoter Holding||Compounded Sales Growth (5 years)||Compounded Profit Growth (5 years)||Operating Profit Margin (%)||Price to Earnings (times)||Price to Book (times)||EV/EBITDA||Debt to equity (times)||Dividend Yield (%)||Return on Equity (%) (FY21)||Return on Capital Employed (%) (FY21)|
|1||PI Industries Ltd.||523642||PIIND||2915.0||2.0||Agrochemicals||44232||46.70%||17.00%||19.00%||22.00%||55.80||7.71||36.20||0.06||0.17%||18.50%||22.10%|
|2||Bharat Rasayan Ltd.||590021||BHARATRAS||10352.0||0.5||Agrochemicals||4400||75.00%||19.00%||37.00%||22.00%||29.50||6.65||20.10||0.19||0.01%||25.60%||30.70%|
|4||DCM Shriram Ltd.||523367||DCMSHRIRAM||987.0||0.5||Chemical Manufacturing||15391||66.50%||8.00%||17.00%||14.00%||19.20||3.14||10.30||0.29||0.94%||15.30%||16.30%|
|5||Coromandel International Ltd.||506395||COROMANDEL||760.0||3.0||Fertilizers||22319||57.50%||4.00%||31.00%||14.00%||16.60||3.82||10.80||0.09||1.58%||28.20%||32.00%|
|6||Bayer CropScience Ltd.||506285||BAYERCROP||4740.0||1.0||Agrochemicals||21301||71.40%||9.00%||9.00%||19.00%||50.70||7.48||25.70||0.00||2.43%||19.00%||31.00%|
|7||Godrej Agrovet Ltd.||540743||GODREJAGRO||541.0||0.5||Agriculture||10399||71.60%||11.00%||14.00%||9.00%||31.20||5.00||17.70||0.72||1.48%||16.10%||18.00%|
|8||Avanti Feeds Ltd.||512573||AVANTIFEED||542.0||4.0||Aquaculture||7383||43.70%||16.00%||16.00%||11.00%||29.10||4.17||18.20||0||1.15%||20.40%||28.90%|
|9||Kaveri Seed Company Ltd.||532899||KSCL||510.0||0.5||Agriculture||2974||57.30%||7.00%||11.00%||29.00%||14.30||2.26||12.20||0||0.78%||25.90%||26.70%|
|10||Balrampur Chini Mills Ltd.||500038||BALRAMCHIN||335.0||0.5||Sugar||6827||42.40%||12.00%||36.00%||15.00%||16.20||2.66||10.00||0.12||0.75%||18.80%||16.50%|
|11||Dalmia Bharat Sugar and Industries Ltd.||500097||DALMIASUG||399.0||0.5||Sugar||3232||74.90%||18.00%||40.00%||18.00%||11.90||1.32||7.68||0.15||0.75%||14.70%||14.50%|
|12||Tata Consumer Products Ltd.||500800||TATACONSUM||770.0||0.5||Coffee and Tea||70927||34.70%||12.00%||151.00%||13.00%||91.50||4.86||43.30||0.08||0.53%||6.13%||8.85%|
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