Introduction
The Indian agricultural sector is always buzzing. The government's continual reforms, raising awareness of optimal farming techniques, and simplifying exports have resulted in exceptional growth in this sector.
According to projections, India’s agricultural sector is predicted to grow to $24 billion by 2025. Another statistic shows that India's food and grocery market ranks sixth globally, with the retail segment accounting for 70% of total sales.
With this data, it is crucial for you, as an investor, to learn about the five critical stocks in this sector you can invest in.
Key agriculture sector stocks to watch out
1. Avanti Feeds Ltd.
Avanti Feeds Ltd. is a leading shrimp exporter in India. It provides quality shrimp and feeds for shrimp farms across the country. The company was established in 1993 and listed on the stock exchange in 1994. It has five feed units, two processing units, and one hatchery in various locations in India. It has a technical collaboration with Thai Union, the world’s largest seafood producer, and holds several certifications for food safety, quality, and sustainability. Avanti Feeds Ltd. also runs a charitable trust, Avanti Foundation, to undertake various health, education, environment, infrastructure, and sports initiatives, especially in rural areas.
Key aspects of Avanti Feeds Ltd.
Data as of February 23, 2024
- Market capitalisation: 6,914 crores
- Price-to-equity (PE) ratio: 24.17
- Price-to-book (PB) ratio: 2.83
- 52-week high: Rs 504.00
- 52-week low: Rs 321.10
- Dividend yield: 1.26%
- Promoters' holding: 43.28%
2. UPL Ltd.
UPL Ltd. is a global leader in sustainable agriculture technology. It offers smart farming practices and innovative crop solutions to farmers and agribusinesses. UPL has a diverse portfolio of products and services, including bio-fertilisers, fungicides, herbicides, insecticides, and crop health solutions.
This company also invests in start-ups that advance natural solutions, aim to reduce atmospheric CO2 by one gigaton and create a new agricultural carbon market. UPL operates in over 130 countries, with over 10,000 employees and 48 manufacturing facilities. UPL's strength lies in its customer-centric approach, OpenAg network fostering collaboration and innovation, and environmental and social responsibility commitment.
Key aspects of UPL Ltd.
Data as of February 23, 2024
- Market capitalisation: 36,919 crores
- Price-to-equity (PE) ratio: 10.35
- Price-to-book (PB) ratio: 1.04
- 52-week high: Rs 759.95
- 52-week low: Rs 452.15
- Dividend yield: 2.03%
- Promoters' holding: 32.35%
3. Balrampur Chini Mills Ltd.
Balrampur Chini Mills Ltd. (BCML) is among India's largest sugar manufacturing companies. It has a presence in downstream products like power, ethanol, and agri-inputs. Founded in 1975, BCML has a cane-crushing capacity of 80,000 tonnes per day across ten plants in Uttar Pradesh.
The company is also one of the first sugar companies in the country to diversify into distillery and cogeneration, producing green fuel and green power from its waste products. BCML's Unique Selling Point (USP) is its integrated business model, which enables it to create diverse co-products, such as molasses, alcohol, bagasse, bio-potash, pressmud, and DDGS, which are used for various purposes like livestock feed, paper, fertiliser, and bio-agents.
Key aspects of BCML Ltd.
Data as of February 23, 2024
- Market capitalisation: 7,714 crores
- Trailing Twelve Months (TTM) Price-to-equity (PE) ratio: 13.14
- Price-to-book (PB) ratio: 2.66
- 52-week high: Rs 485.90
- 52-week low: Rs 349.30
- Dividend yield: 0.66%
- Promoters' holding: 42.90%
4. PI Industries Ltd.
PI Industries Ltd. is a leading agri-sciences company providing innovative solutions across the agrochemical value chain, from research and development to distribution. Founded in 1946, the company has a strong presence in India with over 70,000 retail points and a growing global footprint in Germany, Japan, and China. The company's key USP is its technological capabilities in chemistry and engineering-related services. PI Industries Ltd.'s offerings include crop protection, speciality chemicals, plant nutrition, and seeds.
Key aspects of PI Industries Ltd.
Data as of February 23, 2024
- Market capitalisation: 55,826 crores
- TTM Price-to-equity (PE) ratio: 35.06
- Price-to-book (PB) ratio: 7.76
- 52-week high: Rs 4,011.15
- 52-week low: Rs 2868.90
- Dividend yield: 0.27%
- Promoters' holding: 46.09%
Conclusion
The agriculture sector in India Source Link , with promising stocks for investment in 2024. Avanti Feeds Ltd., UPL Ltd., Balrampur Chini Mills Ltd., and PI Industries Ltd. present strong opportunities for growth. With the government's reforms and the sector's projected growth, investing in these top agricultural stocks could yield significant returns in the coming years.
