Agriculture is the backbone of Indian society and it is a primary activity for most of the people in India. Near 50 percent of India’s population depends upon agriculture it may be directly or indirectly. The central government spends nearly Rs. 1,31,000 crores in agriculture and related sectors to increase agricultural production.
A company is said to be ‘fundamentally strong’ after it showcases a certain set of characteristics such as strong financials, lower leverage ratios, and many more.
Listed below are the fundamentally strong stocks in the agriculture sector:
Kaveri Seeds Ltd
The shares of this seed distribution company opened Tuesday’s trading positively at Rs. 595.50 compared to its previous close at Rs. 589.70. The share hit a high of Rs. 595.50 and closed the day at Rs. 590 apiece.
Looking at the financial statement, the company’s revenue marginally increased by 2.54 percent from Rs. 167.08 crores in Q2 FY23 to Rs. 171.32 crores during Q2 FY 24. In addition, the net profit magnified by 158.87 percent from Rs. 5.3 crores to Rs. 13.72 crores during the same period. The company’s debt-to-equity ratio is zero which means that the business hasn’t relied on borrowing to finance operations
Coming onto the important financial ratios, the return on equity (RoE) increased from 16.85 percent during FY 21-22 to 20.61 percent in FY 22-23. Furthermore, the return on capital employed (RoCE) improved from 17.63 percent to 21.61 percent during the same timeframe.
Bombay Super Hybrid Seeds Ltd
The shares of this seed manufacturing company opened its Tuesday trading session on a higher note at Rs. 230 compared to its previous close at Rs. 225. The share hit a low of Rs. 221 and closed the day at Rs. 222.30 apiece.
Looking at the financial statement, the company’s revenue increased by 60 percent from Rs. 21.02 crores in Q2 FY23 to Rs. 33.76 crores during Q2 FY 24. In addition, the net profit magnified by 82 percent from Rs. 86 lakhs to Rs. 1.57 crores during the same period.
Coming onto the important financial ratios, the return on equity (RoE) increased from 30.7 percent during FY 21-22 to 35.02 percent in FY 22-23. Furthermore, the return on capital employed (RoCE) improved from 18.69 percent to 22.18 percent during the same timeframe.
PI Industries Ltd
The shares of this agri-science company opened Tuesday’s trading session positively at Rs. 3,707 compared to its previous close at Rs. 3,689. The share hit a high of Rs. 3,711 and closed the day at Rs. 3,680 apiece.
Looking at the financial statement, the company’s revenue increased by 19.6 percent from Rs. 1,770 crores in Q2 FY23 to Rs. 2,166 crores during Q2 FY 24. In addition, the net profit magnified by 43.52 percent from Rs. 334.8 crores to Rs. 480.5 crores during the same period.
Coming onto the important financial ratios, the return on equity increased (RoE) from 14.71 percent during FY 21-22 to 18.45 percent in FY 22-23. Furthermore, the return on capital employed (RoCE) zoomed from 17.4 percent to 21.84 percent during the same timeframe. The company’s debt-to-equity ratio is zero which means that the business hasn’t relied on borrowing to finance operations.
Coromandel International Ltd
The shares of this fertilizer company opened Tuesday’s trading session on a higher note at Rs. 1,118 compared to its previous close at Rs. 1,112. The shares hit a high at Rs. 1,133 making a gain of around 1.50 percent and closed the day at Rs. 1,119 apiece.
Looking at the financial statement, the company’s revenue declined by 30 percent from Rs. 10,113 crores in Q2 FY23 to Rs. 6,988 crores during Q2 FY 24. On a contrasting note, the net profit marginally increased by 2.2 percent from Rs. 740.56 crores to Rs. 756.87 crores during the same period.
Coming onto the important financial ratios, the return on equity (RoE) increased from 26.62 percent during FY 21-22 to 28.27 percent in FY 22-23. Furthermore, the return on capital employed (RoCE) improved from 36.93 percent to 40.51 percent during the same timeframe. The company’s debt-to-equity ratio is zero which means that the business hasn’t relied on borrowing to finance operations.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
