List of Best Agricultural Stocks in India 2024

Agriculture has long held its title as the backbone of India’s economy, but many individuals view tech-driven sectors have taken up the charge. However, agriculture remains a silent powerhouse fueling the growth of the nation.

In this blog, we will discuss the best agriculture stocks in 2024, focusing on innovation with potential profits that might surprise even the most skeptical investors. Curious about which stocks lead the way? Read on.

Overview of the Agricultural Sector in India

The agricultural sector in India is one of the key pillars of its economy, accounting for 16 percent of GDP and more than 42 percent of employment. The industry has passed through many challenging phases, from labor-intensive manual work to adopting precision farming, biotechnologies, and digital platforms. It is this blend of old and new that places Indian agriculture at the forefront of global food production.

The agriculture sector faces unpredictable weather conditions and resource constraints, and, most of all, emphasis on sustainable practices presents challenges. However, the sector offers immense opportunities in organic farming, agri-tech innovations, and exports. India’s Agritech market is projected to be valued at $24 billion by 2025. Given the strong commitment and support of the government toward the use of technology to innovate conventional farming methods, the future of the Indian agriculture sector is bright, offering a very attractive option to investors seeking stable and long-term growth.

Top Agriculture Stocks Based on Market Capitalization

The top agriculture stocks in 2024 are:

The agriculture stocks have been listed in descending order based on their market capitalization in the table below:

Best Agriculture Stocks in India Based on Market Capitalization – An Overview

The best agriculture stocks in India are given below, along with a brief overview:

1. Coromandel International Ltd.

Incorporated in 1961, with its headquarters in Hyderabad, Coromandel International Limited is among the top agrochemical companies in India. This company is part of the Murugappa Group and has fertilizers, crop protection chemicals, and specialty nutrients as key products. Coromandel runs its business through a large network of manufacturing facilities and distribution channels. Its business model is oriented towards providing sustainable agriculture solutions to farmers with quality, innovative products for better yields and healthier soils.

2. UPL Ltd.

UPL Ltd. is one of the largest agrochemical companies worldwide and a global leader in sustainable agricultural solutions. It was founded in 1969, and it generates income from approximately 150 countries worldwide. UPL develops, manufactures, and markets crop protection products, seeds, and post-harvest applications. The company has a portfolio of over 13,600 products, including herbicides, insecticides, and fungicides. UPL Ltd. operates to provide vital solutions for improved agricultural productivity and food security globally, with innovation and sustainability at the core.

3. PI Industries Ltd.

PI Industries, previously known as Mewar Oil & General Mills Limited, was established in 1946. The company is a global leader in the agrochemical industry. Its business segments include agrochemicals, specialty products, and R&D services. The company also provides formulation and technical services for formulation development, registration support, and manufacturing services for agrochemical products.

4. Bayer CropScience Ltd.

Bayer CropScience Ltd. is a leading agrochemical and biotechnology company and is under the parent company Bayer AG. The company was incorporated in India in 1958. The business model of the company involves developing and marketing crop protection products, seeds, and biotechnology solutions. Its product umbrella ranges from herbicides, fungicides, and insecticides to seeds, thereby giving farmers in India a wide range of products. Its strength in R&D and innovation has helped Bayer CropScience carve a niche for itself in the agriculture industry and its tremendous contribution toward world agriculture productivity and sustainability.

5. Bombay Burmah Trading Corporation Ltd.

It is an Indian trading company established in 1863 by the Wallace brothers. It also holds the record for the oldest publicly traded company in India. The company initially set up a business in Rangoon and shipped tea to Bombay. The company expanded its operations and became a leading producer of teak in Burma by 1870. In 1913, the company was engaged in the production of tea and invested in tea plantations in Southern India. Today, the company is a part of the Wadia group and provides tea, coffee, other plantation products, etc.

6. Godrej Agrovet Ltd.

Godrej Agrovet Ltd. is a Godrej Group company, incorporated in the year 1897, and is among the leading agribusiness companies in India. Its key business areas include animal feed, poultry farms, crop protection solutions, cultivation of oil palm, and agrochemical products. It combines innovation and sustainability to raise agricultural productivity and serve farms’ diversified needs.

7. Rallis India Ltd.

Rallis India Limited is an Indian company within the agrochemicals industry, established in 1948, and a subsidiary of Tata Chemicals. The company runs its business by following the model of manufacturing and marketing crop protection products such as pesticides, fungicides, and herbicides. Rallis also offers seeds and plant growth nutrients. Rallis India has served millions of farmers across the globe and contributed immensely toward agricultural productivity and sustainability with its strong presence in 58 countries through a network of more than 6,000 dealers and 70,000 retailers.

8. Kaveri Seed Company Ltd. 

Kaveri Seeds is India’s largest agriculture company with expertise in the development of hybrid seeds. The company’s history can be traced back to 1976 when Shri G.V. Bhaskar Rao established a seed production unit in Telangana. Kaveri Seeds was incorporated in 1986. The company became a major player in the agricultural sector by initiating a R&D program in 1991 and launched the first hybrid maize in 1997. The company was listed on the Indian stock exchanges in 2007 and featured in the Forbes ‘Best Under a Billion’ company in Asia Pacific.

Top Agriculture Stocks Based on 1-Year Return

The agriculture stocks have been listed in descending order based on their 1-year returns in the table below:

Best Agriculture Stocks in India Based on 1-Year Return – An Overview

The best agriculture stocks according to 1-Year return are given below, along with a brief overview: 

Dhanuka Agritech Ltd.

Established in 1980, Dhanuka Agritech Ltd. is a frontline Indian agrochemical company. The business model is based on the manufacturing and selling a full suite of innovation and technology-based products for crop protection, including herbicides, insecticides, fungicides, and plant growth regulators. Dhanuka caters to millions of farmers in India through a product basket of over 300 products with a strong distribution network of more than 8,000 distributors and 80,000 retailers. The company’s focus on innovation and research made it one of the brands counted upon for enhancing agricultural productivity.

Insecticides (India) Ltd.

Insecticides (India) Ltd. is one of India’s leading agrochemical companies, and it was set up in 2001. The company produces and distributes a wide range of crop protection products, including insecticides, herbicides, fungicides, and plant growth regulators. Insecticides (India) Limited has a product range of more than 150 products and has over 8,000 dealers and a 65,000 retailer base, reaching millions of farmers throughout the country. Quality consciousness and continuous innovation have given the company a solid brand in the minds of Indian farmers.

Overviews of the remaining companies have been given above.

Key Performance Indicators 

Benefits of Investing in the Agriculture Stocks

Here are some of the reasons why investment in agriculture stocks in India makes a lot of sense:

• Climate-Resilient Crops – India is developing varieties of high-yielding, climate-resilient crops that reduce the risk associated with changing weather conditions.
• Government Support – Policies and subsidies introduced by the government in the agriculture sector enhance stability and give confidence to investors.
• Growing demand –  An increase in population leads to an increase in demand for food, hence boosting agriculture stock performance.
• Steady Demand – The agriculture sector is less cyclical, with stable demand and steady revenue even during an economic slowdown.

Factors to Consider Before Investing in the Agriculture Stocks

There are various factors one should take into account before investing in agriculture stocks:

• Government Policies – Investors should stay informed about various government policies, current minimum support prices, subsidies, and import-export regulations, as these factors substantially impact the profitability of the companies.
• Monsoon and Weather Pattern – The performance of the agriculture industry in India is heavily dependent on the monsoons. Unpredictable weather patterns can significantly affect crop yield, hence the performance of agriculture stocks.
• Technological Advancement – Companies in the agriculture industry are embracing innovation and investing in R&D. Companies focusing on new technologies like precision farming and biotechnology may have better positioning among competitors.
• Input Costs – Profit margins of agriculture companies are highly impacted by fluctuations in input price prices like fertilizers, pesticides, and seeds.

The Future of Agriculture Industry

Agriculture stocks in India look very promising, with huge incentives, budgetary allocations by the government, and a focus on climate-resilient crop varieties. For instance, the government is planning to release 109 high-yielding and climate-resilient varieties of 32 field and horticultural crops for cultivation by farmers within the next two years. 

Other initiatives include promoting natural farming practices, aiming to tie up one crore farmers with natural farming on the lines of certification and branding. The creation of 10,000 bio-input resource centers and missions for self-sufficiency in pulses and oilseeds further underlines the plan of strengthening production, storage, and marketing. Digital public infrastructure for agriculture will be augmented to cover six crore farmers and their lands within three years, bringing efficiency and transparency into the sector. Besides these, financial support for shrimp farming and exports, with ₹1.52 lakh crore provided for agriculture and allied sectors, adequately highlights the government’s commitment towards transforming the agricultural landscape, thereby generating investment opportunities for an investor.

Conclusion

In a nutshell, the agriculture sector in India is a great investment opportunity with a low-risk profile and great growth potential. The best agriculture stocks in 2024 will be companies that mix tradition with innovation, using new technologies and government aid. Considering that a lot of companies exist in this sector, the best time to deliberate on identifying the company with maximum potential will be now. After all, the best returns often emerge from the early planting of the right seeds. However, it is advised to consult a financial advisor before investing.

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