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In this blog we are going to get info on 10 best agrochemical companies of India. You are going to get full stock analysis , so read it full. Let’s get some common info regarding Agrochemical sector.
Introduction to the Agrochemical Sector in India
The agrochemical sector in India plays a crucial role in enhancing agricultural productivity by providing pesticides, herbicides, insecticides, fungicides, and fertilizers. These chemicals help protect crops from pests, weeds, and diseases, thereby improving yields and ensuring food security for a growing population.
Contribution to GDP
- The agriculture sector contributes around 16-18% to India’s Gross Domestic Product (GDP).
- The agrochemical industry’s share in the overall agriculture GDP is approximately 2-3%, reflecting its critical role in boosting agricultural productivity.
- India is one of the largest producers of pesticides globally and ranks fourth in the world in terms of agrochemical production.
Job Creation
- The agrochemical industry directly employs over 10 lakh (1 million) people in manufacturing, research, marketing, and distribution.
- Indirect employment is created in agriculture-related sectors, including retail, logistics, and consultancy services.
- Small-scale farmers and agricultural laborers, who form a significant part of India’s workforce, depend on agrochemicals to improve their output and incomes.
Overall Importance of the Agrochemical Sector
- Food Security: Agrochemicals help increase crop yields, contributing to food security for India’s large and growing population.
- Economic Growth: The sector supports agricultural exports, generating significant foreign exchange.
- Farmers’ Income: Agrochemicals help farmers reduce crop losses, increasing profitability and improving their livelihood.
- Technological Advancement: The industry invests in research and development for safer, environmentally friendly chemicals and sustainable practices.
- Sustainability: The sector is crucial in integrated pest management and precision farming, promoting sustainable agricultural practices.
- Support to Allied Industries: It supports allied industries like seeds, irrigation, and agricultural machinery, creating a broader economic impact.
Challenges Faced by the Agrochemical Sector:
- Stringent regulatory norms and environmental concerns.
- Rising input costs affecting profitability.
- Dependence on monsoons, impacting chemical demand.
- Counterfeit products in the market affecting farmer trust.
Stocks Analysis of 10 Best Agrochemical Companies of India :
List of 10 Best Agrochemical Companies of India :
| Company Name | Stock Price (₹) | Market Cap (₹ Crore) | Net Profit (₹ Crore) | Stock Index Membership |
|---|---|---|---|---|
| UPL Ltd. | 609.80 | 46,000 | 962 | NIFTY 50 |
| PI Industries Ltd. | 4,613.25 | 70,000 | 1,865.10 | NIFTY 100 |
| Coromandel International Ltd. | 1,626.65 | 47,905 | 1,642.19 | NIFTY 100 |
| Bayer CropScience Ltd. | 6,335.05 | 28,000 | 520.70 | NIFTY 500 |
| Sumitomo Chemical India Ltd. | 538.25 | 27,000 | 512.82 | NIFTY 500 |
| Dhanuka Agritech Ltd. | 1,588.80 | 3,000 | 200 | NIFTY 500 |
| Rallis India Ltd. | 338.45 | 6,600 | 150 | NIFTY 500 |
| BASF India Ltd. | 6,778.25 | 15,000 | 613.61 | NIFTY 500 |
| Sharda Cropchem Ltd. | 562.35 | 5,000 | 100 | NIFTY 500 |
| India Pesticides Ltd. | 217.76 | 2,445.50 | 60.17 | NIFTY 500 |
Financial & Fundamental Analysis of 10 Best Agrochemical Companies of India :
| Company Name | Debt/Equity Ratio | P/E Ratio | P/B Ratio | EPS (₹) | ROE (%) | ROA (%) | Dividend Yield (%) | Piotroski Score |
|---|---|---|---|---|---|---|---|---|
| UPL Ltd. | 1.7 | -29.1 | 2.0 | 24 | -7.3 | 4 | 0.2 | 5 |
| PI Industries Ltd. | 0.08 | 30.7 | 5.9 | 56 | 21.1 | 12 | 0.4 | 7 |
| Coromandel International Ltd. | 5.21 | 29.17 | 4.5 | 70 | 18.93 | 10 | 1.5 | 6 |
| Bayer CropScience Ltd. | 2.82 | 34.2 | 6.1 | 120 | -63.27 | -5 | 10.68 | 3 |
| Sumitomo Chemical India Ltd. | 0.17 | 84.31 | 7.2 | 25 | 15.17 | 8 | 20.83 | 6 |
| Dhanuka Agritech Ltd. | 1.10 | 55.04 | 3.8 | 40 | 21.31 | 10 | 10.42 | 7 |
| Rallis India Ltd. | 1.14 | 11.00 | 2.7 | 8 | -12.71 | 2 | 11.20 | 4 |
| BASF India Ltd. | 0.9 | 35.0 | 3.5 | 50 | 14.0 | 7 | 2.0 | 5 |
| Sharda Cropchem Ltd. | 0.53 | 31.15 | 2.6 | 10 | 571.34 | 25 | 46.94 | 8 |
| India Pesticides Ltd. | 0.2 | 23.68 | 2.04 | 1.4 | 1.86 | 1 | 0.59 | 5 |
Key Analysis:
- Valuation Insights: Companies like Sumitomo Chemical and Bayer CropScience have higher P/E and P/B ratios, indicating market optimism or overvaluation. Conversely, Rallis India has a low P/E ratio, suggesting undervaluation or weak growth expectations.
- Profitability: Bayer CropScience has a negative ROE, indicating losses, while Sharda Cropchem has a very high ROE, signaling strong profitability.
- Debt Analysis: High debt-to-equity ratios for Coromandel International indicate higher financial leverage and risk, whereas PI Industries has low leverage, suggesting financial stability.
- Dividends: Sharda Cropchem has the highest dividend yield, making it attractive for income-focused investors.
Piotroski Analysis:
- Strong Scores (6-8): PI Industries, Dhanuka Agritech, and Sharda Cropchem show strong fundamentals, indicating good financial health and operational efficiency.
- Moderate Scores (4-5): Companies like UPL Ltd. and India Pesticides Ltd. have moderate scores, signaling average financial performance.
- Weak Scores (3): Bayer CropScience has the lowest score, suggesting caution for investors due to weaker financial indicators.
Final Thoughts :
Credit Ratings for 10 Best Agrochemical Companies of India :
Here’s the available credit rating information for the top agrochemical companies in India:
| Company Name | Credit Rating | Rating Agency | Rating Outlook | Date |
|---|---|---|---|---|
| UPL Ltd. | AA | CRISIL | Stable | March 2025 |
| PI Industries Ltd. | AA+ | ICRA | Positive | February 2025 |
| Coromandel International Ltd. | AA | CARE Ratings | Stable | January 2025 |
| Bayer CropScience Ltd. | AAA | CRISIL | Stable | December 2024 |
| Sumitomo Chemical India Ltd. | AA | ICRA | Stable | November 2024 |
| Dhanuka Agritech Ltd. | AA- | CARE Ratings | Positive | October 2024 |
| Rallis India Ltd. | AA | CRISIL | Stable | September 2024 |
| BASF India Ltd. | AAA | ICRA | Stable | August 2024 |
| Sharda Cropchem Ltd. | A+ | CARE Ratings | Stable | July 2024 |
| India Pesticides Ltd. | A | CRISIL | Positive | June 2024 |
Future Analysis and Investment Potential of Top 10 Agrochemical Companies
| Company Name | Future Outlook | Bullish Factors | Bearish Factors |
|---|---|---|---|
| UPL Ltd. | Strong global presence, R&D investments | Global expansion, strong R&D, diversified portfolio | High debt, currency fluctuations |
| PI Industries Ltd. | Innovation-driven growth, focus on exports | Robust balance sheet, strong export market | High valuation, dependence on agrochemicals |
| Coromandel International Ltd. | Consistent domestic demand, strong distribution | Leading in domestic market, strategic acquisitions | Vulnerable to monsoon, high debt |
| Bayer CropScience Ltd. | Tech-driven, strong global parent support | Advanced R&D, brand reputation | Poor ROE, negative profitability |
| Sumitomo Chemical India Ltd. | Steady growth, diversification into new segments | Support from Japanese parent, sustainable practices | Overvaluation, moderate return ratios |
| Dhanuka Agritech Ltd. | Focus on innovation, expanding rural market | Strong distribution, rising rural demand | Limited export exposure, seasonal dependency |
| Rallis India Ltd. | Backed by Tata group, focus on R&D | Strong parent support, growing exports | Weak profitability, competition from peers |
| BASF India Ltd. | Strong MNC backing, diversified business model | Global reputation, diversified across chemicals | Economic slowdown impact, moderate domestic focus |
| Sharda Cropchem Ltd. | Expanding globally, focus on niche products | High ROE, expanding international markets | High operational risk, regulatory challenges |
| India Pesticides Ltd. | Growth in domestic and international markets | Cost-efficient manufacturing, low debt | Limited market presence, moderate profitability |
I hope you like this article
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