Best Agriculture Stocks in India to Invest In

The rapid increase in the population might increase the demand for agro-products, which will influence the sales figures of agriculture companies in India. This might provide additional growth potential to the best agriculture stocks in India and encourage investors to invest in this defensive option. 

Moreover, the government is also focusing on such stocks with the help of initiatives and policies. For example, PM KMY (Pradhan Mantri Kisan Maan Dhan Yojana) was launched to support small farmers with a monthly pension of ₹3,000 after they turned 60. Investing in agriculture stocks in India might provide investors with this ultimate government support and high growth potential. It is the right time to delve deeper into some facts related to the agro sector and assess the accuracy of investing in this promising industry in India. 

Agriculture Sector in India: An Overview

The backbone of the Indian economy, the agriculture sector contributes well to the growth of GDP (Gross Domestic Product). The evolution of dietary patterns escalated the demand for agro products. For more than half of the population in India, the agriculture industry has become a primary source of income as it is the best place to cultivate wheat, cotton, and rice. The fast-paced industrialisation in India empowered this promising sector with a CAGR of 4% over the past few decades. 

Moreover, in the interim budget of 2024, the government allocated 2.7% (₹1,52,000 crores) to promote digital infrastructure, natural farming, national cooperation policy, bio-input resource centres, and climate-resilient seeds in the Indian agriculture sector. These are sufficient to attract the attention of most investors looking to generate long-term returns. Now is the time to identify some of the best agriculture stocks in India with prices that could diversify the portfolio and provide higher returns.  

Agriculture Stocks List

*Data is updated as of 2nd December 2024

Overview of Agriculture Stocks

1. PI Industries Ltd. 

Founded: 1946

Headquarters: Gurugram, Haryana

PI Industries Ltd. is mainly engaged in the manufacturing and selling of fungicides, herbicides, nutrients, and pesticides. The extraordinary R&D capabilities of this organisation played a vital role in its success and increased brand recognition. PI Industries not only excelled in India but also established its global presence in countries like Japan, Germany, and China. 

The brand has also focussed on successfully integrating Industry 4.0 standards and built a robust capacity in all the segments of its value chain, including commercialisation, process synthesis, and scale-up. This organisation is also known as the leading Indian distributor of agrochemicals and fine chemicals worldwide. The market capitalisation of PI Industries Ltd. is ₹62,520 crores, and its PE (Price-to-Earnings) ratio is 34.91, which makes it one of the best agriculture stocks in India. 

2. Coromandel International Ltd. 

Founded: 1961

Headquarters: Secunderabad, Telangana

Coromandel International Ltd. mainly engaged in two different segments: crop nutrition and crop protection. As the top agricultural solutions provider, it offers products such as fertilisers, plant nutrients, herbicides, fungicides, insecticides, and bio-input products. 

The company operates large retail network with over 750 stores and has been recognised as the global producer of neem-based pesticides. The market capitalisation of this one of the best agriculture stocks in India is ₹51,520 crores, and its PE (Price-to-Earnings) ratio is 38.34. 

3. Sumitomo Chemical India Ltd. 

Founded: 2000

Headquarters: Mumbai, Maharashtra

Sumitomo Chemical India Ltd. offers a range of products to protect crops and control rodents. These include pesticides, bug sprays, and animal nutrients. This organisation operates in two different domains: agrochemicals and others. In the other segment, the company concentrates on animal nutrition and environmental health. 

The company manufactures, imports, and also promotes the agro-products. Sumitomo Chemical India Ltd, one of the best-known agriculture sector stocks in India, has a market capitalisation of ₹26,570 crores and a PE (Price-to-Earnings) ratio of 55.98. 

4. BASF India Ltd. 

Founded: 1943

Headquarters: Mumbai, Maharashtra 

BASF India Ltd. offers its products and services to different sectors, such as agriculture, automotive, construction, and pharmaceuticals. The company is also involved in the manufacturing and distribution of chemicals in India. 

The company operates in 6 different segments: Nutrition & Care, Chemicals, Agriculture, Industrial Solutions, and Technologies. It owns two different subsidiaries, BASF Coatings (India) Pvt. Ltd. and BASF Polyurethanes India Ltd. BASF India Ltd., one of the best agriculture stocks in India, has a market capitalisation of ₹28,830 crores and a PE (Price-to-Earnings) ratio of 37.70. 

5. Chambal Fertilisers and Chemicals Ltd. 

Founded: 1985

Headquarters: Kota, Rajasthan

Chambal Fertilisers and Chemicals Ltd. is an agrochemical manufacturer with an installed capacity of 1.5 million tonnes annually. It manufactures nitrogenous fertilisers (Urea) and provides different bio-inputs for agricultural activities.  It owns subsidiaries like ISGN Technologies and CFCL Ventures Ltd. 

The fertiliser plant of CFCL is located in Gandepan, Kota, and has helped most to make this organisation a recognised Urea provider in the country. Investors should consider the low debt of this company as a plus point when investing in it. The market capitalisation of Chambal Fertilisers and Chemicals Ltd. is ₹19,920 crores, and its PE (Price-to-Earnings) ratio is 13.78. 

6. Kaveri Seed Company Ltd. 

Founded: 1976

Headquarters: Secunderabad, Telangana

Kaveri Seeds Company Ltd. provides optimised high-yield seeds for agricultural activities. This robust infrastructure of this company encompasses seed processing and storage across different locations. With over 1,00,000 acres of seed production facilities and storage plants across the country, Kaveri Seeds is consistently growing in the competitive business environment. 

The company provide seeds for crops like cotton, rice, mustard, wheat, pulses, bajra, brinjal, tomatoes, okra, and many more. The market capitalisation of this one of the best agriculture stocks in India is ₹4,600 crores, and its PE (Price-to-Earnings) ratio is 15.27. 

Agriculture Stocks With Price-to-Earnings (PE) Ratio

*Data is updated as of 2nd December 2024

How to Invest?

Here is a step-by-step guide on how to invest in the best agricultural stocks in India. 

• Step 1: Identify your goals behind the investment and assess the path to achieve them optimally.
• Step 2: Research the top 10 agriculture stocks in India or consult a financial advisor to make informed investment decisions. 
• Step 3: To generate higher returns, select the fundamentally strong shares with higher growth potential in the coming years. 
• Step 4: Open your demat account and place the buy order for the quantity of stocks you wish to buy. 
• Step 5: Execute the order and start tracking your portfolio from day one to identify the right exit position for profit booking. 

To Conclude

Investing in agriculture stocks in India has become popular nowadays. Investors looking for stocks to generate long-term wealth and dividend income can consider them. With the ultimate support of the government and an effective export mechanism, the agriculture sector can show promising growth in the coming years. Moreover, it is also claimed that this industry contributes around 1.9% of India’s GDP (Gross Domestic Product). Conduct your own research on the top 10 agriculture stocks in India to choose the best among them.

Note: Consult your financial advisor or use the best stock advisory platform, Univest, to choose fundamentally strong shares! 

FAQs

1. What are the best agriculture stocks in India?

Ans. Here are the best agriculture stocks to buy in 2025 with their market capitalisation. 

*Data is updated as of 2nd December 2024

Which is the largest agriculture company in India?

Ans. PI Industries Ltd. is the largest agriculture company in India, with a market capitalisation of ₹62,520 crores. The company is engaged in producing and distributing agrochemicals and fine chemicals. PI Industries has an impressive global presence and exports its chemical products to nations such as Japan, Germany, and China. 

3. What factors to consider when investing in agriculture stocks?

Ans. Before investing in the best agriculture stocks in India, you should consider key factors such as global demand, market sentiments, the company’s financial health, weather patterns, and market volatility. These factors could help you make your portfolio more diversified so as to invest with balanced returns. 

4. How do agriculture stocks diversify the portfolio?

Ans. Agriculture sector stocks in India are resilient to economic slowdowns and market volatility. It contributes around 1.9% of the country’s GDP and offers investors a steady growth opportunity to build wealth. Other sectors, such as FMCG, depend on agro-products to meet societal demand. Thus, it could be a plus point to add the best agriculture stocks to your portfolio.