Best Fertilizer Stocks With High FII Holdings: Fertilizers play a crucial role in ensuring nations’ food security by providing essential nutrients to plants, which help them grow and produce nutritious crops. As a result, fertilizers have become a vital component of the agriculture industry, attracting more foreign investors to India’s markets and creating new investment opportunities. In this article, we going to look at the 5 Best fertilizer Stocks With High FII Holdings.

Best Fertilizer Stocks With High FII Holdings

We will now look at the 5 Best Fertilizer Stocks With High FII Holdings. In this study, we will give a brief overview of the companies followed by their financial highlights.

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Gujarat State Fertilizers & Chemicals

Best Fertilizer Stocks With High FII Holdings - Gujarat State Fertilizers & Chemicals Logo
ParticularsAmountParticularsAmount
CMP₹ 293.8Market Cap (Cr.)₹ 11,360
EPS26.51Stock P/E6.84
RoE10.63 %RoCE13.08 %
Promoter Holding37.84%FII Holding20.69%
Debt to EquityNilPrice to Book Value0.59
Net Profit Margin11.14%Operating Profit Margin13.96%

Incorporated in 1962, Gujarat State Fertilizers & Chemicals is a joint-sector company promoted by the Government of Gujarat. The company is engaged in the production of bulk and non-bulk fertilizers and chemicals.

It was the first in India to manufacture DAP complex fertilizer and is also a leading producer of various chemicals including Melamine HX Sulphate Crystal, Caprolactam, Nylon 6, and Methanol.

The company offers a range of products such as DAP, Urea, AS, APS, Caprolactam, Melamine, and Nylon catering to customers from various industries like textile, agriculture, tyre, chemical, automobile, pharma, plywood, laminate, and farmers. These products are sold through authorized distributors and directly to customers. 

The company has 4 manufacturing units located in Surat, Vadodara, and Jamnagar, and has been serving 27 states in India and 38 countries worldwide.

The company’s financials show that it has earned a revenue and profit of ₹ 11,368.69 crores and ₹ 1,265.92 crores, respectively. During the previous 5 financial years, the company’s revenues and profits have grown at a CAGR of 7.57% and 26.58% respectively.

In FY23,  the company reported an ROE and ROCE of 10.63% and 13.08%, respectively. This suggests a below-average return on the capital invested by shareholders and a low efficiency in the utilization of the company resources.

On a positive note, the company does not have any debt which means it uses its funds to run its operations.

As per Q2FY24, the promoters and the FII hold 37.84% and 20.69% stake in the company, respectively.

Gujarat Narmada Valley Fertilizers & Chemicals

Gujarat Narmada Valley Fertilizers & Chemicals logo
ParticularsAmountParticularsAmount
CMP₹ 808.9Market Cap (Cr.)₹ 11,687
EPS59.97Stock P/E11.79
RoE17.13 %RoCE22.66 %
Promoter Holding41.18%FII Holding18.63%
Debt to EquityNilPrice to Book Value1.24
Net Profit Margin14.31%Operating Profit Margin18.35%

Incorporated in 1976, Gujarat Narmada Valley Fertilizers & Chemicals Limited is a joint-sector company promoted by Gujarat State Fertilizers & Chemicals Ltd and the Government of Gujarat.

The company mainly operates under two business segments, that is, Fertizler and Chemical segment. Furthermore, they have ventured into Information Technology and Neem Products. 

Under the fertilizer segment, the company operates Urea and ammonium Nitro-Phosphate plants. Under the Chemical segment, the company operates Ammonia, Weak Nitric Acid (2 plants), Methanol (3 plants), Concentrated Nitric Acid (3 plants), Acetic Acid, Toluene Di-Isocyanate (2 plants), Ethyl Acetate, Aniline and Formic Acid plants. 

Currently, the company has an installed capacity of 2208 KTPA and has conducted its business in 25 states in India and 65 countries worldwide.

During FY23, the company generated a net revenue of ₹ 10,226.93 crores from which it has retained a net profit of ₹1,463.98 crores. During the past five years, the company has grown at a CAGR of 14.76% and 18.55%, respectively.

The company has reported good return ratios with the ROE and ROCE standing at 17.13% and 22.66%, respectively as of FY23. Furthermore, the company has been debt-free over the past three years.

Talking about its shareholding pattern, the promoters have consistently held a 20.69% stake in the company over the past few quarters. As of Q1FY24, the FII’s held an 18.63% stake in the company.

Chambal Fertilisers and Chemicals

Chambal Fertilisers and Chemicals Logo
ParticularsAmountParticularsAmount
CMP₹ 390.55Market Cap (Cr.)₹ 16,098
EPS27.34Stock P/E11.33
RoE15.36 %RoCE16.44 %
Promoter Holding60.56%FII Holding10.85 %
Debt to Equity0.47Price to Book Value1.67
Net Profit Margin3.72 %Operating Profit Margin6.55%

Incorporated in 1985, Chambal Fertilisers and Chemicals is one of the leading Urea producers in India. Currently, it accounts for nearly 15% of the total Urea produced in the country.

Along with Urea, the company is engaged in the marketing of other fertilizers such as Di-Ammonium Phosphate (“DAP”), Muriate of Potash (“MOP”), NPK fertilizers, Speciality Plant Nutrients, and Crop Protection Chemicals. 

The company operates three plants and markets its products through 20 regional offices across 13 states working with 4000 dealers. Currently, the company has established its presence in 262 districts across India.

During the last five years, the revenues and profits of the company have grown at a CAGR of 28.79% and 14.64%, respectively. For FY23, the company’s revenue and profits were reported at ₹ 27,772.81 crores and ₹ 1,033.79 crores, respectively.

Coming to the company’s return ratios, an ROE of 15.36 % and a RoCE of 16.44% suggest a moderate efficiency in the utilization of company resources. 

On a positive note, the company majorly uses its funds to run its operations, which is indicated by its debt-to-equity ratio of 0.47.

As of Q2FY24, the stakes held by the promoters and the FIIs in the company were 60.56% and 10.85% respectively.

Deepak Fertilisers And Petrochemicals Corporation

Deepak Fertilisers And Petrochemicals Corporation Logo
ParticularsAmountParticularsAmount
CMP₹ 694.5Market Cap (Cr.)₹ 8,701.74
EPS53.25Stock P/E11.28
RoE27.28 %RoCE26.54 %
Promoter Holding45.46%FII Holding9.11%
Debt to Equity0.71Price to Book Value1.47
Net Profit Margin10.8 %Operating Profit Margin19.16%

Incorporated in 1979, Deepak Fertilisers and Petrochemicals Corporation is one of the leading producers of fertilizers and industrial chemicals in India.

The Company is engaged in the production of Industrial Chemicals (Nitric Acid, Isopropyl Alcohol, Methanol, and Carbon Dioxide) Crop Nutrition (Nitro Phosphate, Nitrogen Phosphorus Potassium variants, Water Soluble Fertilisers, and Bentonite Sulphur), and Technical Ammonium Nitrate (Mining Chemicals).

Currently, the company has a product portfolio spanning industrial chemicals, bulk and specialty fertilizers, farming diagnostics and solutions, technical ammonium nitrate, and value-added real estate.

The company has 4 manufacturing facilities located with a production capacity of over 32,00,000 MT per annum.

The financials of the company indicate that the company has earned a revenue of ₹ 11,300.69 crores during FY23. The profits were recorded at ₹ 1,220.88 crores during the same period.

From FY19 to FY23, the revenues and the profits of the company have grown at a CAGR of 13.78% and 101.90%, respectively.

An ROE of 27.28% and a RoCE of 26.54% indicate high efficiency in the way the company is utilizing its resources. Furthermore, the company reported a debt-to-equity ratio of 0.71 signifies moderate debt levels in the company.

As of Q2FY24, the stakes held by the promoters and the FIIs in the company were 45.46% and 9.11% respectively.

Coromandel International

Best Fertilizer Stocks With High FII Holdings - Coromandel International logo
ParticularsAmountParticularsAmount
CMP₹ 1,250.05Market Cap (Cr.)₹ 36,765
EPS68.76Stock P/E16.34
RoE28.27 %RoCE40.51 %
Promoter Holding57.33%FII Holding7.18%
Debt to EquityNilPrice to Book Value3.65
Net Profit Margin6.79%Operating Profit Margin9.80%

Coromandel International, a part of the Murugappa Group, is a leading provider of agricultural solutions in India. As the market leader in agri-solutions, the company provides a diverse variety of products and services from seed to harvest.

The company mainly operates in the Nutrients & Crop Protection segment. Under this, the company offers fertilizers, crop protection chemicals, specialty nutrients, and biopesticides. Furthermore, it has 750 rural retail centers in three southern Indian states.

The company has 18 manufacturing facilities in India and distributes its products to over 80 countries worldwide. In India, it has a network of 20,000+ dealers and 2,000+ professionals providing services to 2 crore farmers annually.

During FY23, the company generated a net revenue of ₹29,627.91 crores from which it has retained a net profit of ₹2,012.93 crores. 

In the previous 5 financial years, the revenues and profits of the company have grown at a CAGR of 22.34% and 29.29%, respectively.

Coming to the company’s return ratios, an ROE of 28.27% and a RoCE of 40.51% suggest a high efficiency in the utilization of company resources. Furthermore, the company has been debt-free over the past three years.

As of Q2FY24, the stakes held by the promoters and the FIIs in the company were 57.33% and 7.18% respectively.

Conclusion

We have reached the end of the article on ‘Best Fertilizer Stocks With High FII Holdings’. One should note that if you are looking to invest in fertilizer companies in India, you should keep a close watch on all Fertilizer companies besides the five mentioned above.

One should also note that these stocks were chosen mostly based on FII ownership. Therefore, investors should make their investment decisions based on their analysis and judgment.

By utilizing the stock screenerstock heatmapportfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks, also get updated with stock market news, and make well-informed investments.


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