India’s agro-fertiliser market is set to grow continuously, expected to reach Rs.1.38 lakh crore by 2032, growing at 4.2 percent per year. Fertiliser output in FY24 touched 45.2 million tonnes, showing the success of current policies.
As the second-largest producer of fruits and vegetables, India benefits from schemes like PM-KISAN and PM-Garib Kalyan Yojana, which help farmers financially. This article focuses on small-cap fertiliser and agrochemical companies that have low debt, with borrowings under Rs. 70 crore and a debt-to-equity ratio below 0.3.
1. Sharda Cropchem Ltd
Sharda Cropchem Limited is a company that markets and sells a wide range of crop protection products like fungicides, herbicides, and insecticides across the world.
Along with agrochemicals, the company also supplies organic and inorganic chemicals used in industries like water treatment, food, and other industrial applications. With a strong global network, Sharda serves both farmers and various industries efficiently.
With a market capitalization of Rs. 7,980 Crores, the shares of Sharda Cropchem Limited opened at Rs. 880.50 per equity share, from its previous day’s closing price of Rs. 883.20. Sharda Cropchem has a very low debt of Rs. 8 crore compared to its Q4FY24 revenue of Rs. 1,829 Crores. Its debt-to-equity ratio is 0, which means the company has almost no reliance on borrowed money.
This shows strong financial health and stability. From a financial point of view, this reduces risk and interest costs, allowing the company to use its profits for growth and expansion instead of paying off debt.
2. Gujarat State Fertilizers & Chemicals Ltd (GSFC)
Gujarat State Fertilizers & Chemicals Ltd (GSFC) is a government-backed company started in 1962. It makes a variety of fertilisers and industrial products like plastics, synthetic rubber, and man-made fibres.
The company is a market leader in making Caprolactam, a key raw material used in Nylon 6. GSFC also leads in producing Nylon 6 polymer and its related compounds. With a market capitalization of Rs. 8,260.44 Crores, the shares of Gujarat State Fertilizers & Chemicals Ltd opened at Rs. 204.95 compared to its previous day’s close price of Rs. 204.50.
The company has a very low debt of Rs. 2 crore compared to its revenue of Rs. 1,922 Crores in Q4FY24. Its debt-to-equity ratio is 0, which means the company has no dependence on borrowed money. This shows strong financial health and low risk, as the company can manage its operations without pressure from loan repayments.
3. Rallis India Ltd
Rallis India Ltd, a part of the Tata Group, is a company that makes and sells crop protection products, plant nutrients, and home care chemicals. It also partners with other companies to manufacture special chemicals used in farming and industry.
With a strong network of over 8,000 dealers and 95,000 retailers, it reaches 80 percent of India’s districts and supports more than 7 million farmers. Rallis india ltd focuses on offering safe, effective solutions for better farming and pest control. Rallis India Ltd is a small-cap company with a market capitalization of Rs.7,122 Cr. It opened at Rs.358.05 per equity share from its previous day’s closing price Rs.356.85.
Rallis India Ltd has a low debt of Rs.63 crore compared to revenue of Rs. 957 Crores as of Q4FY24. Its debt-to-equity ratio is 0.03, which means the company uses very little borrowed money to run its business.
Written by Sudeep Kumbar
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