5 Best Fertilizer Stocks with High FII Shares in India.

Best fertilizer stocks with high FII holdings: Fertilizers play an important role in ensuring a country’s food security by providing essential nutrients to plants, allowing them to grow and produce nutritious crops. As a result, fertilizers have become an essential component of the agricultural industry, attracting more foreign investors to Indian markets and creating new investment opportunities. In this article, we will look at five best fertilizer stocks with high FII holdings.

Best Fertilizer Stocks with High FII Holdings

Now, let us take a look at the top five fertilizer stocks with high FII holdings. This study provides a brief overview and financial highlights of the company.

Gujarat State Fertilizers and Chemicals

Established in 1962, Gujarat State Fertilizers & Chemicals is a joint venture 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 company in India to manufacture DAP compound fertilizer and is also a leading producer of various chemicals including melamine HX sulfate crystals, caprolactam, nylon 6, and methanol.

The company offers a wide range of products including DAP, urea, AS, APS, caprolactam, melamine, nylon, etc. to customers from various industries including textiles, agriculture, tires, chemicals, automotive, pharmaceuticals, plywood, laminates, farmers, etc. These products are sold directly to customers through authorized dealers.

The company has four manufacturing facilities in Surat, Vadodara and Jamnagar and serves 27 states in India and 38 countries around the world.

According to the company’s financials, it earned revenue and profit of ₹11,368.69 crores and ₹1,265.92 crores respectively. Over the past five fiscal years, the company’s revenue and profits have grown at a CAGR of 7.57% and 26.58%, respectively.

In FY23, the company recorded ROE and ROCE of 10.63% and 13.08%, respectively. This means a below-average return on the capital invested by shareholders and a low efficiency in utilizing the company’s resources.

The positive thing is that the company has no debt. That means using the funds for operations.

As of Q2 2024, the promoters and FIIs hold 37.84% and 20.69% stake in the company, respectively.

Gujarat Narmada Valley Fertilizers and Chemicals

Established in 1976, Gujarat Narmada Valley Fertilizers & Chemicals Limited is a joint venture between Gujarat State Fertilizers & Chemicals Ltd and the Government of Gujarat.

The company operates primarily through two business segments: Fertizler and Chemical divisions. Moreover, they have also ventured into information technology and Neem products.

The fertilizer segment operates urea and ammonium nitrophosphate plants. In the chemical sector, we operate ammonia, weak nitric acid (2 plants), methanol (3 plants), concentrated nitric acid (3 plants), acetic acid, toluene diisocyanate (2 plants), ethyl acetate, aniline, and formic acid. Acidic plants.

Currently, the company has an installed capacity of 2208 KTPAs and operates in 25 states in India and 65 countries across the world.

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

The company reported good returns with ROE and ROCE of 17.13% and 22.66%, respectively, as of FY23. Moreover, the company has had zero debt for the past three years.

Talking about the shareholding pattern, the promoters have been consistently holding 20.69% stake in the company for the last few quarters. As of Q1 2024, FIIs hold 18.63% stake in the company.

Chambal Fertilizers and Chemicals

Established in 1985, Chambal Fertilizers and Chemicals is one of the leading urea producers in India. It currently accounts for about 15% of domestic production.

Along with urea, the company is engaged in the marketing of other fertilizers such as diammonium phosphate (“DAP”), potassium muriate (“MOP”), NPK fertilizers, specialty plant nutrients and crop protection chemicals.

The company operates three plants and sells its products through 20 regional offices across 13 states and 4,000 dealers. Currently, the company is present in 262 locations across India.

Over the past five years, the company’s revenue and profits have grown at a CAGR of 28.79% and 14.64%, respectively. In FY23, the company’s revenue and profit were reported at ₹27,772.81 crores and ₹1,033.79 crores, respectively.

Looking at the company’s returns, ROE of 15.36% and RoCE of 16.44% suggest moderate efficiency in utilizing the company’s resources.

The positive thing is that the company mainly uses its funds for operating operations, which is reflected in its debt-to-equity ratio of 0.47.

As of the second quarter of 2024, the shareholding of our promoters and FIIs is 60.56% and 10.85%, respectively.

Deepak Fertilizer and Petrochemical Company

Established in 1979, Deepak Fertilizers and Petrochemicals Corporation is one of India’s leading producers of fertilizers and industrial chemicals.

The company is engaged in the production of industrial chemicals (nitric acid, isopropyl alcohol, methanol and carbon dioxide) crop nutrition (nitrogen phosphate, potassium phosphate variants, water-soluble fertilizers and bentonite sulfur) and technical ammonium nitrate (mining chemicals). ).

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

The company has four manufacturing facilities with an annual production capacity of over 32,00,000 MT.

According to the company’s financials, the company earned revenue of ₹11,300.69 crores during FY23. Net profit during the same period recorded 1.22088 trillion won.

From FY19 to FY23, the company’s revenue and profit grew at a CAGR of 13.78% and 101.90%, respectively.

ROE of 27.28% and RoCE of 26.54% indicate high efficiency in the way the company utilizes its resources. The company also reported that its debt-to-equity ratio is 0.71, which means that the company’s debt levels are moderate.

As of the second quarter of 2024, the shareholding of our promoters and FIIs is 45.46% and 9.11%, respectively.

Coromandel International

Coromandel International, part of the Murugappa Group, is a leading provider of agricultural solutions in India. As a market leader in agricultural solutions, the company offers a wide range of products and services from seed to harvest.

The company primarily operates in the Nutrient and Crop Protection segments. Accordingly, the company offers fertilizers, crop protection chemicals, specialty nutrients and biopesticides. It also has 750 rural retail centers across three southern Indian states.

The company has 18 manufacturing facilities in India and distributes its products to over 80 countries globally. In India, we have a network of over 20,000 dealers and 2,000 experts, serving two billion farmers every year.

During FY23, the company generated a net profit of ₹29,627.91 crores and maintained a net profit of ₹2,012.93 crores.

Over the last five fiscal years, the company’s revenue and profits have grown at a CAGR of 22.34% and 29.29%, respectively.

Looking at the company’s rate of return, ROE is 28.27% and RoCE is 40.51%, which means that the company’s resource utilization is highly efficient. Moreover, the company has had zero debt for the past three years.

As of the second quarter of 2024, the shareholding of our promoters and FIIs is 57.33% and 7.18%, respectively.

conclusion

We have reached the end of our article on ‘Best Fertilizer Stocks with High FII Holdings’. If you are looking to invest in fertilizer companies in India, you should closely watch all the fertilizer companies apart from the five mentioned above.

It is also important to note that these stocks were mostly selected based on FII ownership. Therefore, investors must make investment decisions based on their own analysis and judgment.

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