The Indian agrochemicals market is currently valued at $10.3 billion and is expected to reach $14.5 billion by FY28, with a CAGR of 9 percent from FY25 to FY28. During this period, India also saw its exports grow with a CAGR of 14% from FY19 to FY23, whereas imports grew merely by a 6 percent CAGR, which solidifies India’s stance as a net exporter of agrochemicals.
In this article, we will look at some of the best agrochemical-listed companies in India that have good fundamentals and look to capitalize on this $14.5 billion dream of India.
PI Industries Ltd
PI Industries Ltd is a leading agriscience company specializing in agrochemicals and crop protection solutions. It manufactures and distributes insecticides, herbicides, fungicides, and biostimulants in India, Asia, North America, Europe, and other international markets.
The company also provides research and development services, including molecule design, biological evaluation, and lead optimization. Additionally, PI Industries offers custom synthesis and manufacturing solutions, covering process research, analytical method development, large-scale production, and safety studies. Its products are sold through distributors, dealers, and retailers, supporting various crops like rice, cotton, tomatoes, and apples.
The company plans a capex of Rs 800- Rs 1000 crore for the upcoming year, including the construction of two new multiproduct plants. The management expects its pharma segment and biological segment to grow by 20-25 percent and 25-30 percent respectively.
With a market cap of Rs 52,246 crores. It made a 52-week high of Rs 4,804.05 per share, down by 28 percent, from its CMP of Rs 3,444 per share. It has an ROE and ROCE of 21.13 percent and 24 percent respectively. Also, it has a PE of 30.76x which is higher than the industry PE of 25.30x.
UPL Ltd.
UPL Limited is a global provider of sustainable agricultural solutions. It has three main segments: Crop Protection, Seeds Business, and Non-Agro, producing chemicals for pharma, agri-chemicals, paints, and mining. UPL also runs nurture.farm, a digital agtech platform, and offers innovative solutions like Decco FullCover for fruit protection and Zeba for soil and water management. Formerly known as United Phosphorus Limited, it rebranded as UPL Limited in 2013.
The management is confident in maintaining its revenue, EBITDA and free cash flow for FY25. It plans to acquire a larger market share by offering more products to the market targeting $85 million from these initiatives. It targets an operating free cash flow of $300-400 Million.
With a market cap of Rs 48,834 crores. It made a 52-week high of Rs 671.30 per share, down by 3.5 percent, from its CMP of Rs 647 per share It has an ROE and ROCE of -4.28 percent and 3.29 percent respectively.
Sumitomo Chemicals Ltd.
Sumitomo Chemical India Ltd is engaged in the manufacture and sale of household and public health insecticides, agricultural pesticides, and animal nutrition products in India and internationally. It also offers crop protection products, animal nutrition, plant growth regulators, weedicides, and biological products. The company is a subsidiary of Sumitomo Chemical Company Limited.
The company received Environmental Clearance approval for the Dahaj Plant without any specific conditions. The management plans a capex exceeding Rs 300 crores for the manufacture of new and generic products.
With a market cap of Rs 26,332 crores. It made a 52-week high of Rs 628 per share, down by 16 percent, from its CMP of Rs 528.30 per share. It has an ROE and ROCE of 15.33 percent and 20.83 percent respectively. Also, it has a PE of 51.24x, which is significantly higher than the industry PE of 25.30x.
Bayer CropScience Ltd
Bayer CropScience Limited is a leading agrochemical company engaged in the manufacture, sale, and distribution of insecticides, fungicides, herbicides, and hybrid seeds like corn and paddy. It also provides medicines for cardiology, gynecology, diabetes, oncology, and ophthalmology, along with medical imaging devices. The company offers consumer health products and digital farming solutions, including FarmRise, drones for spraying, and advanced technologies like IoT sensors, AI, and data analytics for precision agriculture.
The company plans to expand its drone technology for agricultural applications as it is in the nascent stages but shows potential for growth in the future. It plans to continuously develop new products which gives priority to farmer needs and preferences.
With a market cap of Rs 21,932 crores. It made a 52-week high of Rs 7,189.90 per share, down by 32 percent, from its CMP of Rs 4,874 per share It has an ROE and ROCE of 26.70 percent and 33.91 percent respectively. Also, it has a PE of 42.12x, which is in line to that of the industry PE of 42.03x.
Written by Satyajeet Mukherjee
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