Home Collections Best Agricultural Stocks List in India 2024 for Long Term Investing

Best Agricultural Stocks List in India 2024 for Long Term Investing

Best Agricultural Stocks List in India 2024 for Long Term Investing
Reading Time: 16 minutes

Agriculture, the backbone of India’s economy, has long been a source of sustenance and livelihood for millions. Beyond its traditional importance, agriculture has evolved into a promising investment avenue. Thus, today, we will explore the realm of agriculture stocks in India. Here, the fields of finance and farming intertwine to offer unique investment opportunities.

What are Agriculture Stocks?

Agricultural stocks represent shares in companies that operate within the agricultural sector. From cultivating crops to producing essential goods, these companies form a vital link in the agricultural value chain. Here, we unveil the top 10 agriculture stocks in India, shedding light on the companies that drive this dynamic sector.Investing in agriculture stocks India lets you engage in the financial performance of companies. These companies are crucial for producing, processing, distributing, and supplying agricultural products and services. Investing in agriculture stocks in the stock market can provide investors with exposure to the broader agricultural sector.

List of the Top 10 Agriculture Stocks in India

Here is a list of agriculture stocks in India. The stocks on this agriculture share list are the top agro stocks in India right now:

Stock NameMarket Cap (in Cr)Dividend Yield ( in %)Share Price
UPL Ltd.₹34,9821.81%₹461.05
PI Industries Ltd.₹56,5860.3%₹3,702.5
Coromandel International Ltd₹31,4681.02%₹1,054.8
Bayer CropScience Ltd₹22,8222.25%₹5,002
Sumitomo Chemical India Ltd₹17,1400.3%₹344.3
Chambal Fertilizers Ltd₹13,7802.01%₹340.9
BASF India Ltd₹14,3080.27%₹3,265.05
Gujarat Narmada Valley Fertilizers Chemicals Ltd₹9,1214.27%₹612.35
Fertilizers & Chemicals Travancore Ltd₹41,4960.12%₹639.95
Bombay Burmah Trading Corporation Ltd₹10,9130.07%₹1,542.3
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data on the top agriculture companies in India in the list is from 19th March 2024. However, for real-time updates on agriculture stock prices and market trends, visit the smallcase stocks collection today!

with a potential for high returns
DISCOVER
with a potential for high returns

Why Invest in Agriculture Stocks?

Investing in agricultural stocks in India offers a compelling opportunity for both financial growth and sectoral impact. Let’s explore why- 

  • Stability and Resilience: The agriculture stocks industry has historically demonstrated stability, making agriculture sector stocks a reliable investment choice even during economic fluctuations.
  • Global Economic Significance: Agriculture is a fundamental sector, deeply integrated into economies worldwide, ensuring its enduring relevance for investors.
  • Diverse Growth Avenues: Agriculture sector stocks go beyond food production, extending into industries such as textiles, biofuels, and pharmaceuticals, offering diverse avenues for growth.
  • Cyclical Opportunities: Agriculture sector stocks can benefit from cyclical trends, allowing investors to capitalise on favourable market conditions.
  • Sectoral Impact: Investing in agriculture stocks contributes to the growth of a sector crucial for food security and global economic development.
  • Long-Term Potential: The long-term nature of agriculture related stocks complements strategies seeking steady growth and wealth accumulation.

As always, investors must do their own research and/or consult their financial advisor before investing in the best agriculture stocks in India.

Top Agriculture Stocks in India: An Overview

Let us get to know the top agriculture stocks in India from our agriculture stocks list NSE a little better now. These had been listed above as the top 10 listed agritech companies in India:

UPL Ltd

UPL generated an impressive operating revenue of Rs. 49,381.00 Cr. in the last 12 months, boasting an outstanding annual growth rate of 16%. The pre-tax margin stands at a respectable 9%, and the return on equity (ROE) is a solid 13%. However, the company’s debt-to-equity ratio is on the higher side at 75%. It can be considered one of the best agriculture stock in India for 2024 on our organic crop share in India list. . 

PI Industries Ltd

PI Industries boasts an impressive operating revenue of Rs. 7,206.10 Cr. in the past year. Noteworthy figures include a remarkable 23% annual revenue growth, an excellent pre-tax margin of 22%, and an exceptional ROE of 17%. This agriculture related stock stands out for being debt-free and maintains a robust balance sheet, ensuring stable earnings growth regardless of business cycles, making it one of the top 10 agriculture company in India for 2024. 

Coromandel International Ltd

Coromandel International, one of the most impressive agriculture stocks has earned an impressive Rs. 26,466.93 Cr. in the past year. Notably, its annual revenue surged by an outstanding 55% while maintaining a pre-tax margin of 9%, and an exceptional ROE of 25%, making it one of the top 100 agriculture companies in India for stock market investments. 

Bayer CropScience Ltd

Bayer Cropscience achieved an impressive Rs. 5,377.20 Cr. in operating revenue over the last 12 months. With a robust annual revenue growth of 9%, a commendable pre-tax margin of 19%, and an exceptional ROE of 27%, the company’s financial performance is noteworthy. Notably, being debt-free and maintaining a strong balance sheet position Bayer Cropscience is one the best agriculture stocks that consistently deliver stable earnings growth regardless of business cycles. This makes it one of the top agriculture companies in India listed in stock market for 2024. 

Sumitomo Chemical India Ltd

Sumitomo Chemical India recorded a robust operating revenue of Rs. 3,032.95 Cr. in the past year, showcasing an impressive 15% annual growth. With a noteworthy pre-tax margin of 19% and an exceptional ROE of 21%, the company stands out. Notably, Sumitomo Chemical India is debt-free, boasting a strong balance sheet that contributes to consistent earnings growth, even in varying business cycles. It is one of the best agro company in India for 2024 stock market investment in agriculture sector in India. 

Chambal Fertilizers Ltd

Chambal Fert. & Chems. generated Rs. 22,869.68 Cr. in operating revenue over the past year, reflecting an impressive annual growth of 73%. The pre-tax margin stands at a satisfactory 5%, and the return on equity (ROE) is commendable at 14%. With a reasonable debt-to-equity ratio of 25%, the company maintains a robust and healthy balance sheet. It is also one of the best food sector stocks in India on our list. 

BASF India Ltd

BASF India (NSE) generated Rs. 13,256.24 Cr. in operating revenue over the last 12 months. While the 4% annual revenue growth could be enhanced, the pre-tax margin stands at 4%, indicating room for improvement. On a positive note, the ROE is commendable at 14%. Notably, the company is debt-free with a robust balance sheet, ensuring consistent earnings growth irrespective of business cycles.

Gujarat Narmada Valley Fertilizers Chemicals Ltd

Gujarat Narmada Valley Fertilizers and Chemicals (Guj.Narmada Vly.Fcm.) generated an impressive operating revenue of Rs. 8,676.00 Cr. in the last 12 months. With an outstanding annual revenue growth rate of 20%, a commendable pre-tax margin of 19%, and a solid ROE of 16%, the company demonstrates robust financial performance. Notably, being debt-free and maintaining a strong balance sheet empowers the company to sustain stable earnings growth throughout various business cycles.

Fertilizers & Chemicals Travancore Ltd

Fert. & Chems. Travancore achieved a robust operating revenue of Rs. 5,866.56 Cr. in the last 12 months, boasting an impressive annual growth of 39%. With a healthy pre-tax margin of 10% and an exceptional ROE of 48%, the company operates debt-free, maintaining a robust balance sheet that supports stable earnings growth throughout business cycles.

Bombay Burmah Trading Corporation Ltd

Bombay Burmah Trading recorded an impressive operating revenue of Rs. 17,000.79 Cr. in the past year, reflecting a noteworthy annual growth rate of 15%. While the pre-tax margin stands at a satisfactory 7%, the ROE lags significantly at -41%, signaling a need for improvement. Notably, the company faces a concerning high debt-to-equity ratio of 106%.

How to Invest in Agriculture Stocks?

To invest successfully in agriculture stocks in India, follow these steps.

  • Step 1: Research the agriculture shares in India and understand its dynamics.
  • Step 2: Assess your risk tolerance and set financial goals.
  • Step 3: Choose your investment approach: direct organic food stocks India or agriculture-focused funds.
  • Step 4: Select specific Agriculture stocks NSE or funds based on strong financials and diversify.
  • Step 5: Open a Demat and trading account with a stockbroker.
  • Step 6: Monitor your investments and stay updated on sector news.
  • Step 7: Adopt a long-term perspective due to sector fluctuations.
  • Step 8: Consider seeking professional advice for informed decisions.

However, if you’re confused about which stocks to pick, you can explore smallcases:

  1. smallcases are readymade portfolios of stocks/ETFs, that are based on a theme idea or strategy
  2. They’re created and managed by SEBI-registered experts
  3. smallcase.com offers over 200+ stock portfolios, created by 180+ managers
  4. Some of the popular smallcases among new investors are as follows:

Equity & Gold smallcase by Windmill Capital

Top 100 Stocks smallcase by Windmill Capital

All Weather Investing smallcase by Windmill Capital

Disclosures for aforementioned smallcases

Factors to Consider Before Investing in Agriculture Stocks

There are a few factors investors should consider before investing in agriculture sector stocks. These factors can affect and influence the selection of the best agriculture stocks in India. 

  • Market Trends and Demand: The overall demand for agricultural products and the performance of the agricultural sector in India play a significant role in the selection of agri stocks India. Favorable market trends can boost the financial performance of farming companies in India engaged in farming, agribusiness, and related activities.
  • Company Financials: Analyzing the financial health of agriculture sector companies in India is crucial. Factors such as revenue growth, profitability, debt levels, and cash flow provide insights into the company’s stability and growth potential of the agri sector stocks. 
  • Regulatory Environment: Government policies, subsidies, and regulations related to agriculture can significantly impact companies’ profitability. Investors should be aware of policies affecting areas like crop pricing, fertilizers, and subsidies.
  • Research and Development: Top Agri Companies in India that invest in research and development (R&D) to develop new crop varieties, agrochemicals, and technologies are better positioned to adapt to changing market dynamics.
  • Economic Indicators: Monitoring broader economic indicators such as GDP growth, inflation rates, and interest rates can influence the investment climate for agriculture stocks.

As always, investors must do their own research and/or consult their financial advisor before investing in agriculture stocks list.

Features of the Top Agricultural Stocks in India

When evaluating agricultural stocks in India, certain key features distinguish the top performers.

  • Market Presence and Reputation: Leading agriculture penny stocks in India have established a strong market presence and garnered a reputable standing within the industry. Look for companies with a track record of reliability and consistent performance.
  • Diversified Portfolio: The best agricultural stocks often maintain diversified portfolios, spanning various segments of the agriculture value chain. This diversification helps mitigate risks associated with specific agricultural sectors.
  • Technological Integration: Successful agricultural or basically food stocks leverage technology to enhance productivity and efficiency. Agricultural companies in India embracing innovative agricultural practices, precision farming, and digital solutions are positioned for sustained growth.
  • Financial Health and Stability: Examining the financial health of agricultural stocks is crucial. Top performers exhibit stability, robust financial structures, and effective risk management strategies.
  • Global and Domestic Trends Awareness: Adept penny stocks agriculture stay attuned to both global and domestic trends. Awareness of market dynamics, policy changes, and international trade impacts ensures adaptability and resilience.
  • Sustainable Practices: With increasing focus on sustainability, top agricultural stocks prioritize eco-friendly and socially responsible practices. Companies integrating sustainable agriculture methods are poised to meet evolving market demands which also includes investing in agriculture penny stocks.

What are the Risks and Challenges of Investing in Agriculture Stocks?

Investing in agriculture stocks can offer significant opportunities, but it also comes with its fair share of risks and challenges. Let us look at a few disadvantages of investing in agriculture sector stocks. 

  • Price Volatility: Agricultural commodities, including crops, can experience significant price volatility due to factors such as weather conditions, supply and demand imbalances, and geopolitical events. Fluctuating agriculture share prices can impact the profitability of agriculture companies and their ag stocks.
  • Regulatory and Policy Impact: Government policies, regulations, and trade agreements can impact the agriculture industry and stocks. Changes in policies related to crop pricing, subsidies, export/import regulations, and environmental regulations can influence best agriculture company in India operations and profitability.
  • International Trade and Currency Fluctuations: Agriculture stocks can be affected by global trade dynamics, including changes in tariffs, trade agreements, and currency fluctuations. International trade disruptions can impact companies’ access to markets and profitability.
  • Supply Chain Disruptions: Listed agriculture companies in India rely on complex supply chains for production, distribution, and transportation. Disruptions in supply chains due to logistical challenges, transportation issues, or labor shortages can impact top agriculture company in India operations and the financial performance of the agriculture share list.

Who Should Imvest in the Best Agriculture Stocks?

Investing in agriculture sector stocks in India requires a thorough comprehension of potential risks. Changes in government regulations on essential materials and chemicals can directly affect product offerings, necessitating significant investments in research and development for new products. Ineffective marketing strategies may result in a loss of market share to competitors, impacting company performance. Unpredictable weather patterns and uneven rainfall can disrupt farming activities, affecting demand for fertilisers and thus sales. Financial risks such as cash flow shortages, low profits, and market share loss must also be considered. Therefore, a comprehensive understanding of these factors is vital before contemplating investment in agriculture stocks.

Future Trends and Opportunities of Investing in Agro Stocks

The agriculture sector is undergoing transformative changes driven by technological advancements, shifting consumer preferences, and the need for sustainable practices. Here are some future trends and opportunities to consider while investing in top 10 agriculture stocks in India:

  • Agtech Advancements: Agricultural technology (Agtech) is revolutionizing the industry. Innovations such as precision farming, data analytics, drones, and IoT devices are enhancing productivity, optimizing resource use, and improving decision-making. Investing in the agriculture share list at the forefront of Agtech can yield substantial returns as these technologies become more integrated into farming practices.
  • Organic Farming and Healthy Foods: Consumers’ increasing focus on health and sustainability is driving demand for organic and sustainably produced food. Companies embracing organic farming practices and offering healthy, environmentally-friendly products are well-positioned for growth. Investing in stocks of top agro companies in India that prioritize organic farming and clean label products can tap into this expanding market segment.
  • Sustainable Practices: Companies emphasizing sustainable agriculture practices, including soil health management, reduced chemical usage, and water conservation, align with environmental and consumer demands. These practices not only benefit the environment but also enhance long-term profitability. Investing in agriculture related shares of agro companies in India committed to sustainability can deliver both financial returns and positive societal impact.
  • Vertical Farming and Urban Agriculture: With urbanisation on the rise, the demand for locally grown produce is increasing. Vertical farming and urban agriculture technologies allow crops to be grown in controlled environments close to urban centres. The agriculture share list can be engaged in these innovative farming methods have the potential to reshape the supply chain and provide consistent, fresh produce to urban populations.

What are the Advantages of Investing in Agriculture Stocks?

Agri stocks have emerged as profitable investments in India. Let us look at a few advantages of investing in agriculture sector stocks. 

  • Inflation Hedge: Agricultural products often have an intrinsic value that can act as a hedge against inflation. As prices for goods and services rise, the value of agricultural products can also increase.
  • Sustainability Focus: Increasing consumer awareness of sustainability and eco-friendly practices is leading to a higher demand for organic and responsibly produced agricultural products. Top agri export companies in India aligned with these trends can experience growth.
  • Global Trade Exposure: Agriculture penny stocks list can provide exposure to international markets and trade dynamics, allowing investors to benefit from both local and global economic trends.
  • Impactful Investments: Investing in farming stocks support the essential need for food production and contributes to global food security. It allows investors to have a tangible impact on a critical industry.

How to Select the Best Agriculture Stocks in India?

When selecting the best agriculture stocks in India, it’s crucial to conduct thorough research and analysis. You can start by examining the company’s financial performance, including revenue growth, profitability, and debt levels. Additionally, you may find it beneficial to assess the company’s market position, competitive advantages, and growth prospects within the agriculture sector. Look for companies with diversified product portfolios and a strong presence in key agricultural markets. Furthermore, consider factors such as regulatory environment, technological advancements, and global commodity prices that may impact the company’s performance. By carefully evaluating these factors, investors can identify promising agriculture stocks with long-term growth and profitability potential.

To Wrap It Up…

Investing in the best agricultural stocks in India potentially offers a compelling blend of financial potential and sectoral significance. As you embark on your investment journey, keep in mind the lessons learned about agricultural stocks’ benefits, risks, and growth prospects.

FAQs

1. What are the best agriculture stocks in India?

The best agriculture stocks list to buy in India are:
1. UPL Ltd
2. PI Industries Ltd
3. Coromandel International Ltd

Note: This information is provided for educational purposes and is not intended as a recommendation or endorsement.

2. How can I invest in agriculture sector stocks?

Before buying Indian agricultural stocks list, assess the agricultural company’s financial stability to determine its long-term viability. Analyze its returns, especially during off-seasons, to gauge financial health.

3. Is it a good time to invest in agriculture stocks?

The Indian agriculture sector, along with forestry and fishing, accounts for approximately 20% of India’s GDP. According to Inc42, it’s projected to grow to US$ 24 billion by 2025. Given these developments, now is a prime time to consider agricultural stocks. However, it’s important to do your own research and/or consult a financial advisor before investing in the best agriculture stocks in India.


4. Who should invest in agriculture sector stocks?

Investors seeking to capitalize on India’s agricultural potential may find Indian agriculture stocks list to be a compelling investment opportunity. However, one must consider their risk appetite and investment goals before investing in agriculture share in India.

5. Can agriculture stocks be profitable for investors?

Investing in agricultural land can yield promising returns, especially when the land is situated in proximity to upcoming government infrastructure projects like highways and airports. Investors should comprehend both the growth potential and challenges confronted by agriculture share in India.

6. How does agriculture contribute to trade?

Agricultural trade plays a crucial role in addressing potential food production shortages caused by climatic or other factors, ultimately benefiting farmers, industries, and consumers by enhancing prosperity.