On social media there is a lot of searching about top fertilizer stocks in India which could be the next multi-bagger stock in the future so here is the list of best fertilizer stocks in India that are fundamentally strong and technically good.
List of The Best Fertilizer Stocks
1. Gujarat State Fertilizers and Chemicals Limited.
GSFC was Incorporated in 1962 as Gujarat State Fertilizers and Chemicals Limited. It is a public sector company promoted by the Government of Gujarat.
The company is engaged in the production of fertilizers, Chemicals, textiles, and environmental products.
Distribution Network
GSFC has five regional offices located in Ahmadabad, Vadodara, Surat, Rajkot, and Indore.
There are 38 area officers spread across India.
The dealers and retailers Who sell GSFC products all over India are nearly about 10000.
Plans of GSFC
Production expansion:
The company is planning to expand its production capacity of phosphoric acid, sulphuric acid, urea, and various Industrial Products.
Green initiatives:
The companies focus on environmental sustainability through zero effluent discharge systems, resource conservation, and renewable energy adaptation.
Diversification:
The company wants to diversify its products by exploring new ventures like methanol production, nylon compounding, and specialty
Fundamentals of GSFC
| website | https://www.gsfclimited.com/ |
| Market Cap | 12002.14 Cr. |
| PE | 11.55 |
| Sector PE | |
| PB | 0.98 |
| Dividend Yield | 3.15% |
| Book Value | 307.10 |
| Cash | 1422.83 Cr. |
| DEBT | 0 Cr. |
| Promoter Holding | 37.84% |
| Sales Growth | 25.56% |
| ROE | 10.94% |
| ROCE | 13.39% |
| Profit Growth | 45.14% |
2. National Fertilizer Limited
National Fertilizer Limited was incorporated in 1974 and the headquarters of the company is located in New Delhi.
National Fertilizer Limited company is engaged in the production and marketing of neem-coated urea which has over 16% market share in India the total capacity of Urea production is 35.68 lakh Matric tons.
The company also engaged in the production of biofertilizers (solid and liquid) and other allied Industrial Products.
Product Portfolio:
Chemical fertilizers
Industrial chemicals
Customized fertilizer blends
Soil health cards
Soil testing services
Distribution Network:
The central Marketing office is located in Noida Uttar Pradesh this oversees the entire distribution network.
The company has 4 zonal offices which are situated in Bhopal, Lucknow, Chandigarh, and Hyderabad these offices manage distribution in their respective regions.
The company has 14 state offices and each State Office coordinates fertilizer distribution within its boundaries.
Future Plans of National Fertilizer Limited:
Increasing Energy Efficiency:
Wants to invest in renewable energy sources like solar and wind energy in the future.
Reducing Carbon Footprint:
The company is spending a lot of money on research and development for cleaner production processes and carbon capture Technology improvement.
Water Conservation:
The company optimizing water usage in production exploring wastewater treatment and reuse methods and also promoting rainwater harvesting.
Fundamental of National Fertilizer Limited
| website | https://www.nationalfertilizers.com/ |
| Market Cap | 5742.02 Cr. |
| PE | 91.94 |
| Sector PE | |
| PB | 2.42 |
| Dividend Yield | 2.36% |
| Book Value | 48.54 |
| Cash | 15.66 Cr. |
| DEBT | 3990.93 Cr. |
| Promoter Holding | 74.71 % |
| Sales Growth | 86.77 % |
| ROE | 17.93 % |
| ROCE | 14.98 % |
| Profit Growth | 321.53 % |
3. Rashtriya chemicals and fertilizers Limited
RCFL is a public sector company that was incorporated in 1978 the headquarters company is located in Mumbai.
Nearly 75% of the stake is owned by the government of India and the company is engaged in manufacturing and marketing of fertilizers and industrial chemicals.
Product Portfolio:
Neem coated urea
Fertilizers
Industrial chemicals
Methanol
Recently the company was awarded as one of the Navratna in August 2023.
Distribution Network:
The company has over 8000 authorized dealers spread across India.
Kisan Suvidha Kendras: over a thousand Kisan Suvidha Kendras operated in rural areas.
Direct Farm Deliveries:
For certain reasons, the company trying to deliver fertilizers directly to farmers door doorsteps.
Plans of RCFL:
Talcher fertilizer project:
This is the most CS project which is under construction that AIIMS to be a game changer in the production of urea the capacity of euro production of this project is point 27 million metric tons per annum.
Nano urea project:
The company is actively involved in developing and commercializing Nano urea a Revolutionary fertilizer with higher nutrient use efficiency and less environmental impact.
New NPK Fertilizer Plant at Thal:
To fulfill s of the farmer fertilizer needs RCFL plans a new npk (nitrogen, phosphorus, potassium) fertilizer plant at Thal.
Fundamental of RCFL
| website | https://www.rcfltd.com/ |
| Market Cap | 9764.88 Cr. |
| PE | 18.28 |
| Sector PE | |
| PB | 2.07 |
| Dividend Yield | 2.86 % |
| Book Value | 85.48 |
| Cash | 64.53 Cr. |
| DEBT | 1862.65 Cr. |
| Promoter Holding | 75 % |
| Sales Growth | 67.43 % |
| ROE | 22.79 % |
| ROCE | 22.79 % |
| Profit Growth | 37.31 % |
4. Paradeep Phosphates Limited
Paradeep Phosphates Limited was incorporated in 1981 and the headquarters is located at Paradeep, Odisha.
The company is one of the second largest private sector companies that is engaged in the manufacture of Nano urea fertilizers in India.
The company is mainly engaged in manufacturing, trading, distribution, and sales of fertilizers such as DAP, nitrogen, Phosphorus, potassium, zypmote, phospho-gypsum, and Hydroflorosilicic acid.
Product portfolio:
Core fertilizers
Urea
Muriate of potash
Agrochemicals
Distribution network:
Strategic locations:
The company’s manufacturing units are situated in Paradeep, Odisha, and Goa.
The company has 21 regional marketing officers, 510 stock points, 5322 dealers, and 72925 retailers throughout India.
Plans of the company:
Expand Production Capacity:
By 2025 the company is planning to expand its production capacity to 5 million metric tons per annum.
Increase market share:
By 2025 the company AIMS to increase its market share in the Indian fertilizer market from 10% to 15%.
Fundamentals of Paradeep Phosphate Limited
| website | https://www.paradeepphosphates.com/ |
| Market Cap | 6420.15 Cr. |
| PE | 40.05 |
| Sector PE | |
| PB | 1.87 |
| Dividend Yield | 0.63 % |
| Book Value | 42.18 |
| Cash | 109.85 Cr. |
| DEBT | 4631.10 Cr. |
| Promoter Holding | 56.08 % |
| Sales Growth | 69.76 % |
| ROE | 10.60 % |
| ROCE | 10.77 % |
| Profit Growth | -23.67 % |
5. Chambal Fertilizers and Chemicals Limited
Chambal Fertilizers and Chemicals Limited company was incorporated in 1985 at Gadepan, Kota, Rajasthan.
The company is engaged in the production and marketing of Urea and also other fertilizers and agreed inputs.
Product portfolio:
Nitrogenous fertilizers
Potassic fertilizers
Phosphatic fertilizers
Distribution network:
The company has 12 regional offices these act as nerve centers and manage operations in specific regions.
The company has 700 dealers throughout the country.
Plans of Chambal Fertilizers and Chemicals Limited:
Former Empowerment and Education:
The company wants to expand its programs to provide farmers with training and education on the best practices for sustainable agriculture.
Circular Economy:
The company wants to implement waste reduction and recycling innovation throughout the fertilizer production and distribution Chain system.
Community Development:
The company is focusing on education Healthcare and infrastructure development in Chambal surroundings.
Fundamental of Chambal Fertilizers and Chemicals Limited.
| website | https://chambalfertilisers.com/ |
| Market Cap | 14956.43 Cr. |
| PE | 11.83 |
| Sector PE | |
| PB | 1.96 |
| Dividend Yield | 2.05 % |
| Book Value | 183.41 |
| Cash | 46.61 Cr. |
| DEBT | 3256.12 Cr. |
| Promoter Holding | 60.56 % |
| Sales Growth | 72.84 % |
| ROE | 16.38 % |
| ROCE | 17.23 % |
| Profit Growth | -16.92 % |
Conclusion:
The strong demand for the fertilizer will post the future production sector which will increase the demand for the stocks. And now the govt is increasing this sector for nano urea production and methanol production. In the last year 2023, the production growth increased by 9.6% which indicates the future demand for fertilizer. The sector will boom in the future so before investment consider market conditions and stay safe invested.