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This list offers a comprehensive overview of agrochemical companies based on various metrics, such as market capitalization, price-to-earnings (P/E) ratio, dividend yield, quarterly profit, sales growth, and return on capital employed (ROCE).
Top Performers Based on Metrics :
- PI Industries
- High market cap (₹55,410.49 Cr.), stable quarterly growth, and solid ROCE (24%).
- Known for innovation and market leadership.
- Sumitomo Chemicals
- Consistent profit growth (+32.82%) with a healthy ROCE (20.83%).
- Global presence adds to stability.
- Dhanuka Agritech
- Reasonable P/E ratio (23.28), dividend yield (1.02%), and high ROCE (26.93%).
- Strong growth potential.
- Bayer CropScience
- Excellent ROCE (33.91%) and a dividend yield of 2.51%, but declining profit (-38.85%).
- Sharda Cropchem
- Impressive profit growth (253.77%) and sales growth (33.77%), though ROCE (4.27%) is relatively low.
Companies with Caution Flags :
- UPL: Negative profit growth (-152.09%) and low ROCE (3.29%) despite high sales.
- Astec Lifesciences: Significant losses in quarterly profit (-187.26%) and negative ROCE (-4.48%).
- Aimco Pesticides: Negative profit and weak sales growth (-31.26%).
Emerging Small-Cap Players :
- Aristo Bio-Tech: Strong sales growth (61.22%) with a low P/E ratio (15.42).
- Crop Life Sciences: Good balance of profit and growth with a low market cap.
- Dharmaj Crop: Good ROCE (14.52%) and steady sales growth (23.22%).
Factors to Consider Before Investing :
- Market Cap and Stability: Larger players like PI Industries and Bayer CropScience have a more stable financial base.
- Profit Growth: Companies showing consistent profit increases (e.g., Sumitomo Chemicals, Sharda Cropchem) may indicate operational efficiency.
- ROCE: A high ROCE (e.g., Bayer, Dhanuka) reflects the company’s ability to generate returns on investments efficiently.
- Valuation: Analyze P/E ratios to assess whether the stock is overvalued or undervalued compared to peers.
Here’s is the Entire List of Agro Companies in India :
| S.No. | Name | CMP (₹) | P/E | Market Cap (₹ Cr.) | Div. Yield (%) | NP Qtr (₹ Cr.) | Qtr Profit Var. (%) | Sales Qtr (₹ Cr.) | Qtr Sales Var. (%) | ROCE (%) |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | PI Industries | 3652.20 | 31.21 | 55410.49 | 0.41 | 508.20 | 5.76 | 2221.00 | 4.92 | 24.00 |
| 2 | UPL | 532.20 | – | 42328.86 | 0.19 | -585.00 | -152.09 | 11090.00 | 9.05 | 3.29 |
| 3 | Sumitomo Chemicals | 528.90 | 54.62 | 26399.82 | 0.17 | 190.84 | 32.82 | 971.35 | 7.51 | 20.83 |
| 4 | Bayer Crop Science | 5575.45 | 43.24 | 25057.24 | 2.51 | 136.30 | -38.85 | 1737.60 | 7.44 | 33.91 |
| 5 | Sharda Cropchem | 840.30 | 34.83 | 7581.24 | 0.36 | 42.42 | 253.77 | 776.89 | 33.77 | 4.27 |
| 6 | Dhanuka Agritech | 1383.80 | 23.28 | 6307.13 | 1.02 | 117.52 | 15.48 | 654.28 | 5.88 | 26.93 |
| 7 | Rallis India | 303.95 | 39.67 | 5910.88 | 0.82 | 98.00 | 20.62 | 928.00 | 11.54 | 11.20 |
| 8 | Bharat Rasayan | 10035.10 | 29.76 | 4169.86 | 0.01 | 40.15 | 421.43 | 327.87 | 24.73 | 11.14 |
| 9 | Bhagiradha Chemicals | 310.20 | 177.98 | 3859.95 | 0.03 | 5.44 | -4.90 | 103.73 | -14.98 | 8.25 |
| 10 | Astec Lifesciences | 1181.85 | – | 2317.77 | 0.00 | -38.55 | -187.26 | 98.55 | -11.05 | -4.48 |
| 11 | India Pesticides | 179.90 | 28.78 | 2071.79 | 0.40 | 26.48 | 33.54 | 228.78 | 13.27 | 10.74 |
| 12 | Meghmani Organics | 80.97 | – | 2059.17 | 0.00 | -9.27 | 39.57 | 543.89 | 43.61 | -3.13 |
| 13 | Insecticides India | 668.45 | 15.08 | 1978.49 | 0.45 | 61.60 | 15.70 | 627.21 | -9.88 | 13.02 |
| 14 | Excel Industries | 1309.00 | 21.64 | 1645.51 | 0.42 | 35.68 | 1893.30 | 35.79 | 1.57 | 1.57 |
| 15 | Heranba Industries | 405.40 | 23.91 | 1622.16 | 0.30 | 37.66 | 39.95 | 437.42 | 3.09 | 6.73 |
| 16 | Best Agrolife | 613.00 | 39.35 | 1449.43 | 0.49 | 94.66 | -0.22 | 746.60 | -7.96 | 16.48 |
| 17 | NACL Industries | 67.11 | – | 1338.06 | 0.00 | 14.90 | 265.20 | 440.31 | -24.12 | -0.04 |
| 18 | Punjab Chemicals | 1031.50 | 32.08 | 1264.61 | 0.29 | 12.37 | -31.73 | 242.13 | -0.02 | 22.49 |
| 19 | Shivalik Rasayan | 751.00 | 83.30 | 1168.58 | 0.07 | 4.43 | 113.30 | 82.44 | 22.95 | 6.08 |
| 20 | Dharmaj Crop | 267.60 | 22.36 | 904.43 | 0.00 | 21.03 | -8.68 | 311.33 | 23.22 | 14.52 |
| 21 | Sikko Industries | 101.33 | 38.09 | 221.30 | 0.00 | 2.10 | 29.63 | 15.32 | -18.73 | 20.67 |
| 22 | Ambey | 69.85 | 35.42 | 174.25 | 0.00 | 2.97 | – | 67.65 | – | 17.26 |
| 23 | Super Crop Safe | 22.95 | 29.49 | 92.29 | 0.00 | 0.57 | 78.12 | 12.25 | 90.81 | 6.34 |
| 24 | Aimco Pesticides | 95.25 | – | 91.27 | 0.00 | -1.06 | -181.54 | 55.32 | -31.26 | -18.46 |
| 25 | Aristo Bio-Tech | 133.00 | 15.42 | 90.54 | 0.30 | 4.55 | – | 214.15 | 61.22 | 13.25 |
| 26 | Crop Life Sciences | 49.50 | 13.86 | 84.84 | 0.00 | 3.44 | – | 106.33 | 9.11 | 12.72 |
| 27 | Bhaskar Agrochem | 90.00 | 23.80 | 46.89 | 0.00 | 3.17 | -0.63 | 32.24 | 9.10 | 14.72 |
| 28 | Phyto Chem (I) | 37.30 | – | 16.05 | 0.00 | 0.11 | 168.75 | 4.37 | -39.39 | -4.93 |
Definition and Basic Understanding :
1) Market Capitalization :
Market Capitalization (often referred to as Market Cap) is the total value of a company’s outstanding shares of stock. It is calculated by multiplying the company’s current share price by the total number of its outstanding shares.
Formula:
Market Capitalization = Current Share Price × Number of Outstanding Shares
Market Capitalization=Current Share Price×Number of Outstanding Shares
Categories of Market Capitalization:
- Large-Cap: Companies with a large market cap (usually above ₹20,000 crore). These are established, stable companies.
- Mid-Cap: Companies with a market cap between ₹5,000 crore and ₹20,000 crore. These companies are generally in the growth phase.
- Small-Cap: Companies with a market cap below ₹5,000 crore. These are smaller, riskier investments but may have higher growth potential.
Why is Market Cap Important?
- It helps investors evaluate the size of a company.
- Larger market cap often indicates stability, while smaller market cap may indicate higher growth potential but with increased risk.
- Used to compare companies within the same industry or sector.
2) P/E ratio :
Price-to-Earnings Ratio (P/E Ratio) is a financial metric that measures a company’s current share price relative to its earnings per share (EPS). It is widely used to evaluate whether a company’s stock is overvalued or undervalued compared to its earnings.
Formula :
P/E ratio :
Current Share Price / Earnings Per Share
3) Dividend Yield :
Dividend Yield is a financial ratio that shows how much a company pays out in dividends each year relative to its current share price. It is expressed as a percentage and is often used by investors to evaluate the income potential of an investment in a stock.
4) Net Profit :
Net Profit is the amount of money a company has earned after subtracting all expenses, taxes, and costs from its total revenue during a specific period. It represents the company’s profitability and is also known as the “bottom line” because it is the last item on an income statement.
formula :
Net Profit = Total Revenue – ( Total Expenses + Taxes + Interests )
5) Year On Year Quarterly Profit Growth :
Year-on-Year (YoY) Quarterly Profit Growth measures the percentage change in a company’s net profit for a specific quarter compared to the same quarter in the previous year. It is a key indicator of how a company’s profitability is improving or declining over time.
Conclusion :
India’s agriculture sector is a major strength, contributing significantly to its economy and employment. The sector is vital for food security, rural development, and even export growth. Given this, investing in agrochemical companies can be a smart choice, but whether they are suitable for long-term or short-term investments depends on various factors.
Agrochemical Companies as Investment Options:
Long-Term Investment:
- Sustainability and Growth:
- Agrochemical companies often benefit from the growing demand for agricultural productivity and crop protection. As India’s population increases, so does the need for efficient farming, driving long-term demand for agrochemicals.
- Companies that focus on innovative, environmentally friendly, and sustainable solutions (e.g., organic pesticides or advanced fertilizers) are well-positioned for the future.
- Government Support:
- The Indian government’s continuous support for the agricultural sector—through subsidies, policy reforms, and initiatives like the PM-KISAN scheme—provides a stable environment for agrochemical companies.
- Industry Resilience:
- The agriculture sector is less prone to short-term economic fluctuations, making agrochemical companies relatively resilient. These companies are seen as strong players in a sector with consistent demand.
- Dividends:
- Many large agrochemical companies pay steady dividends, making them attractive for long-term investors seeking both capital appreciation and income.
Short-Term Investment:
- Seasonal Demand:
- Agrochemical companies may experience seasonal fluctuations due to the agricultural calendar. This means that stock prices could rise during peak farming seasons, providing short-term opportunities.
- Crop-related events, weather patterns, and pest outbreaks can affect short-term performance. Analyzing these factors can help in capitalizing on timely investments.
- Volatility in Raw Material Prices:
- Agrochemical companies are influenced by the prices of raw materials (e.g., petrochemicals for fertilizers, specialty chemicals). Any fluctuation can impact their profit margins in the short run, leading to price volatility for their stocks.
- Market Sentiment:
- In the short term, market sentiment driven by news, regulations, or global commodity trends can impact stock prices. This offers potential opportunities for short-term traders who can react quickly.
- Mergers, Acquisitions, and New Regulations:
- The sector is also prone to mergers, acquisitions, and regulatory changes that could impact stock prices quickly, providing opportunities for short-term gains.
Final Thoughts :
For long-term investments, agrochemical companies, especially those that have established themselves in the market (like PI Industries, UPL, or Bayer Crop Science), can provide stable returns due to their steady demand, strong government backing, and role in enhancing agricultural productivity.
For short-term investments, there are opportunities based on seasonal cycles, raw material price movements, or specific market events like pest infestations or changes in government policy. However, short-term volatility can make these investments riskier compared to the long-term.
Happy Investing