Best Long Term Fertilizer Stocks

Best long-term fertilizer stocks include Fertilisers and Chemicals Travancore Ltd with a ₹57,654.11 Cr market cap and -13.94% 6M return, Coromandel International Ltd with ₹53,722.85 Cr and 9.83%, and UPL Ltd with ₹45,025.2 Cr and 4.60%. Other notable stocks are Deepak Fertilisers, with a 15.71% return and Paradeep Phosphates, with 19.07%, showcasing mixed sector performance.

The table below shows the best long-term fertilizer stocks based on market cap and 6-month returns.

What is Long Term Stock?

Long-term stock refers to shares of a company held for an extended period, typically over five years, to benefit from sustained growth and compounding returns. Investors choose long-term stocks based on strong fundamentals, consistent earnings, and industry potential. Unlike short-term trading, long-term investing focuses on stability and wealth creation over time.

What is Fertilizer Stock?

Fertilizer stocks represent shares of companies engaged in manufacturing and distributing fertilizers essential for agricultural productivity. These companies produce nitrogen, phosphate, and potash-based fertilizers, supporting global food production. Investors consider fertilizer stocks as part of the agricultural sector, which plays a crucial role in economic growth and food security.

Features Of Long Term Fertilizer Stocks

The key features of long-term fertilizer stocks include stable demand, as agriculture remains a fundamental industry supporting global food production. These stocks benefit from consistent growth, driven by increasing population and the need for higher crop yields.

1. Market Stability – Fertilizer stocks have relatively stable demand due to their essential role in agriculture. Even during economic downturns, farmers require fertilizers, making these stocks resilient to market fluctuations.
2. Government Support – Many governments provide subsidies and policies favoring fertilizer production and distribution, ensuring steady revenue streams for companies in this sector. This support enhances long-term growth potential.
3. Raw Material Dependency – The profitability of fertilizer companies depends on raw material costs like natural gas, phosphate, and potash. Fluctuations in these resources affect stock performance, making cost management a critical factor.
4. Global Demand Growth – Rising food demand and shrinking arable land drive fertilizer usage worldwide. Companies expanding internationally can benefit from increasing global agricultural needs, enhancing stock growth potential.
5. Cyclical Nature – While fertilizer demand is stable, the industry experiences cycles due to seasonal farming patterns and commodity price shifts. Understanding these cycles helps investors make informed long-term investment decisions.

Best Fertilizer Stocks For Long-term

The table below shows the best fertilizer stocks for the long term based on a 5-year average net profit margin.

Top Long Term Fertilizer Stocks

The table below shows the top long-term fertilizer stocks based on a 1-year return.

Fertilizer Penny Stocks India

The table below shows the fertilizer penny stocks in India.

How To Invest In Long Term Fertilizer Stocks?

To invest in long-term fertilizer stocks, start by analyzing companies with strong financials, consistent growth, and market presence. Look for firms benefiting from stable agricultural demand, government support, and raw material cost management to ensure steady returns over time.

1. Research Companies – Evaluate fertilizer companies based on revenue, profitability, and market position. Look for firms with strong fundamentals, government support, and expansion plans to ensure long-term stability and growth in the agricultural sector.
2. Analyze Market Trends – Study global food demand, raw material prices, and government policies impacting the fertilizer industry. Understanding these factors helps investors identify the best-performing stocks with long-term potential in a dynamic market.
3. Use a Reliable Stock Broker – Open a demat and trading account with a trusted platform like Alice Blue to access fertilizer stocks easily. A reliable broker ensures smooth transactions, research tools, and real-time market updates.
4. Diversify Your Portfolio – Invest in multiple fertilizer stocks to reduce risk. Diversification helps mitigate losses from market fluctuations and ensures stable returns by balancing investments across different companies in the sector.
5. Monitor and Hold Long-Term – Track company performance, industry developments, and government policies. Holding quality stocks for an extended period allows investors to benefit from market growth, compounding returns, and sector stability in the long run.

Advantages Of Investing In Long Term Fertilizer Stocks?

The main advantages of investing in long-term fertilizer stocks include stable demand, as fertilizers are essential for agriculture. With a growing global population and increasing food needs, these stocks offer steady revenue streams and potential long-term capital appreciation.

1. Consistent Demand – Fertilizers are crucial for farming, ensuring year-round demand. Even during economic downturns, agricultural activities continue, making fertilizer stocks relatively resilient and a dependable investment option for long-term growth.
2. Government Support – Many governments provide subsidies and incentives for fertilizer production. This support helps stabilize the industry, ensuring sustained growth and profitability for fertilizer companies over the long run.
3. Growth in Global Agriculture – Rising food demand and decreasing arable land increase fertilizer usage worldwide. Companies expanding internationally can benefit from global agricultural trends, enhancing their revenue and stock value.
4. Dividend Income – Many fertilizer companies generate steady cash flows, enabling them to distribute dividends. Long-term investors benefit from both stock appreciation and passive income through regular dividend payouts.
5. Hedge Against Inflation – Fertilizer stocks often perform well during inflation, as agricultural product prices rise. This helps investors preserve purchasing power and gain inflation-adjusted returns over time.

Risks Of Investing In Long Term Fertilizer Stocks?

The main risk of investing in long-term fertilizer stocks is market volatility due to fluctuating raw material prices and global demand. Factors like government policies, environmental regulations, and economic downturns can impact profitability and stock performance over time.

1. Raw Material Price Fluctuations – Fertilizer production depends on commodities like natural gas, phosphate, and potash. Price volatility in these raw materials can increase production costs, affecting company margins and stock performance.
2. Regulatory and Environmental Policies – Governments impose strict environmental regulations and subsidies that impact fertilizer companies. Sudden policy changes or increased compliance costs can affect profitability and growth prospects in the long run.
3. Global Economic Slowdowns – Economic downturns can reduce agricultural investment and fertilizer demand. Lower spending by farmers and businesses can negatively impact revenue and stock prices of fertilizer companies.
4. Cyclical Nature of Agriculture – The fertilizer industry depends on seasonal farming cycles and unpredictable weather conditions. Poor monsoons or droughts can reduce fertilizer demand, leading to temporary declines in stock value.
5. International Competition – Global fertilizer markets are competitive, with companies from different countries vying for market share. Price wars and trade restrictions can impact domestic producers and affect stock growth.

Introduction to Fertilizer Stocks List

Fertilisers And Chemicals Travancore Ltd

The Fertilizers and Chemicals Travancore Limited is involved in the production of fertilizers and chemicals. It operates in two segments: Fertilizer and Petrochemical. The petrochemical segment focuses on caprolactam. The company offers a variety of products including organic fertilizers, bio-fertilizers, imported fertilizers, and bagged gypsum. 

Caprolactam is manufactured using raw materials such as benzene, Sulphur, ammonia, carbon dioxide, and by-products like anhydrous ammonia, nitric acid (55%), soda ash (off grade), gypsum, sulphuric acid, and oleum. 

• Close Price ( ₹ ): 891.00
• Market Cap ( Cr ): 57654.11
• 1Y Return %: 5.3
• 6M Return %: -13.94
• 1M Return %: -5.33
• 5Y CAGR %: 79.21
• % Away From 52W High: 33.22
• 5Y Avg Net Profit Margin %: 11.3

Coromandel International Ltd

Coromandel International Limited is involved in the manufacturing and trading of agricultural inputs, which include fertilizers, crop protection products, specialty nutrients, and organic compost. The company is divided into segments, namely Nutrient and other allied businesses, and Crop Protection. 

Its range of products and services encompasses fertilizers (nitrogen, phosphate, calcium, potassium), crop protection items (insecticides, fungicides, herbicides, plant growth regulators, bio-products), specialty nutrients, and organic fertilizers sourced from natural materials like city waste (organic portion only), sugarcane molasses, oil cakes, and gypsum. 

• Close Price ( ₹ ): 1823.45
• Market Cap ( Cr ): 53722.85
• 1Y Return %: 73.62
• 6M Return %: 9.83
• 1M Return %: -2.74
• 5Y CAGR %: 24.05
• % Away From 52W High: 8.47
• 5Y Avg Net Profit Margin %: 7.89

UPL Ltd

UPL Limited is an Indian company specializing in crop protection solutions. The company’s primary focus is on the production and sale of agrochemicals and seeds for both field crops and vegetables. In addition, UPL is involved in the manufacture and sale of industrial chemicals, chemical intermediates, and specialty chemicals. The company operates through three main segments: Crop Protection, Seeds, and Non-Agro. 

The Crop Protection segment includes the manufacturing and marketing of traditional agrochemical products and other agricultural-related products. The Seeds segment focuses on the production and marketing of seeds, while the Non-Agro segment involves the manufacture and marketing of industrial chemicals and other non-agricultural products. 

• Close Price ( ₹ ): 566.95
• Market Cap ( Cr ): 45025.2
• 1Y Return %: 10.39
• 6M Return %: 4.60
• 1M Return %: 10.17
• 5Y CAGR %: 1.66
• % Away From 52W High: 5.78
• 5Y Avg Net Profit Margin %: 4.78

Bayer Cropscience Ltd

Bayer CropScience Limited, based in India, specializes in manufacturing, selling, and distributing a range of agrochemical products including insecticides, fungicides, herbicides, and corn seeds. The company operates within the Agri Care sector and provides crop solutions for various types of crops, including cotton, fruits, millet, mustard, pulses, rice, soybeans, sugar cane, vegetables, and wheat. 

Bayer CropScience operates through three main business areas: Crop Protection, Seeds & Traits, and Digital Farming. Its Crop Protection portfolio offers a variety of chemical and biological pest management solutions, while its Seeds & Traits division develops innovative seeds and traits for farmers. 

• Close Price ( ₹ ): 5102.25
• Market Cap ( Cr ): 22930.58
• 1Y Return %: -11.32
• 6M Return %: -26.56
• 1M Return %: -13.71
• 5Y CAGR %: 4.31
• % Away From 52W High: 41.05
• 5Y Avg Net Profit Margin %: 13.24

Chambal Fertilisers and Chemicals Ltd

Chambal Fertilisers and Chemicals Limited, based in India, operates three urea production plants in Gadepan, Kota district, Rajasthan. The company also markets a variety of fertilizers and agri-inputs, including di-ammonium phosphate (DAP), muriate of potash (MOP), ammonium phosphate sulphate (APS), various nitrogen, phosphorus, and potassium (NPK) fertilizers, sulfur, micronutrients, and agrochemicals. 

Its crop protection products encompass insecticides, fungicides, and herbicides. Serving farmers in around 10 states across northern, eastern, central, and western India, it is a key fertilizer supplier in Rajasthan, Madhya Pradesh, Punjab, and Haryana. 

• Close Price ( ₹ ): 494.00
• Market Cap ( Cr ): 19792.22
• 1Y Return %: 38.14
• 6M Return %: -4.39
• 1M Return %: -1.63
• 5Y CAGR %: 22.29
• % Away From 52W High: 16.27
• 5Y Avg Net Profit Margin %: 8.51

Deepak Fertilisers and Petrochemicals Corp Ltd

Deepak Fertilisers and Petrochemicals Corporation Limited is primarily focused on the production, trade, and distribution of bulk chemicals, as well as value-added real estate ventures. The company is structured into three main segments: Chemicals, Bulk Fertilizers, and Realty. 

Within the Chemicals segment, it provides a wide range of products including ammonia, methanol, nitric acid, carbon dioxide, and various specialty chemicals. The Bulk Fertilizers segment encompasses products such as nitrophosphate, diammonium phosphate, and micronutrients. The Realty segment is dedicated to real estate activities, while the Windmill segment focuses on wind power generation.  

• Close Price ( ₹ ): 1120.90
• Market Cap ( Cr ): 14150.0
• 1Y Return %: 81.99
• 6M Return %: 15.71
• 1M Return %: 11.29
• 5Y CAGR %: 59.00
• % Away From 52W High: 28.74
• 5Y Avg Net Profit Margin %: 6.63

Paradeep Phosphates Ltd

Paradeep Phosphates Ltd. is an Indian company that specializes in the manufacture of phosphatic fertilizers. The company is involved in the production, distribution, trading, and sales of a wide range of complex fertilizers, including Diammonium Phosphate (DAP), various grades of nitrogen, phosphorus, and potassium (NPK), Zypmite, Phospho-gypsum, Sulphuric Acid, Ammonia, and Phosphoric Acid. 

Additionally, the company trades and sells Muriate of Potash (MOP), Ammonia, City Compost, and Phosphorus Pentoxide (P2O5-HSS). Its fertilizer products are sold under the brand names Jai Kisaan Navratna and Navratna. Paradeep Phosphates Ltd.’s fertilizer plant is situated in Goa.

• Close Price ( ₹ ): 112.51
• Market Cap ( Cr ): 9171.93
• 1Y Return %: 43.05
• 6M Return %: 19.07
• 1M Return %: 1.77 
• % Away From 52W High: 15.90
• 5Y Avg Net Profit Margin %: 3.41

Rashtriya Chemicals and Fertilizers Ltd

Rashtriya Chemicals and Fertilizers Limited, an India-based company, specializes in the manufacturing of fertilizers and chemicals. The company produces a variety of products such as Urea, Complex Fertilizers, Bio-fertilizers, Micro-nutrients, water soluble fertilizers, soil conditioners, and various Industrial Chemicals. It operates through three main segments: Fertilizers, Industrial Chemicals, and Trading. 

The Fertilizers segment focuses on producing and supplying different grades of fertilizers for agricultural purposes. The Industrial Chemicals segment is involved in the production and supply of chemicals for various industries. The Trading segment handles the import and local marketing of fertilizers for agricultural use.  

• Close Price ( ₹ ): 157.83
• Market Cap ( Cr ): 8707.29
• 1Y Return %: -11.6
• 6M Return %: -28.22
• 1M Return %: -7.23
• 5Y CAGR %: 23.38
• % Away From 52W High: 55.23
• 5Y Avg Net Profit Margin %: 3.56

Gujarat State Fertilizers & Chemicals Ltd

Gujarat State Fertilizers & Chemicals Limited is an Indian company that manufactures fertilizers and chemicals. The company is divided into two main segments: Fertilizer Products and Industrial Products. The Fertilizer Products segment offers a variety of products including urea, ammonium sulphate, di-ammonium phosphate, and various types of NPK fertilizers. 

The Industrial Products segment includes products such as caprolactam, nylon-6, melamine, and methanol. In addition to these, the company also produces water-soluble fertilizers, micronutrients, plant growth promoters, and seeds. Furthermore, they provide agro services such as the Agrinet Call Center, Farm Youth Training Program, and Soil Testing Laboratory.

• Close Price ( ₹ ): 202.77
• Market Cap ( Cr ): 8079.93
• 1Y Return %: -32.72
• 6M Return %: -16.39
• 1M Return %: 0.50
• 5Y CAGR %: 17.10
• % Away From 52W High: 54.09
• 5Y Avg Net Profit Margin %: 6.75

Gujarat Narmada Valley Fertilizers & Chemicals Ltd

Gujarat Narmada Valley Fertilizers & Chemicals Limited, an Indian company, is involved in the production and sale of fertilizers, industrial chemicals, and IT services. The company’s operations are divided into three segments: Fertilizers, Chemicals, and Others. The Fertilizers segment specializes in manufacturing urea and ammonium nitro phosphate, branded as Bharat. 

The Chemicals segment focuses on producing various chemicals such as methanol, formic acid, and more. The Other segment includes IT services like system integration, smart cities projects, e-auction, and neem product activities.

• Close Price ( ₹ ): 545.60
• Market Cap ( Cr ): 8017.08
• 1Y Return %: -26.1
• 6M Return %: -23.48
• 1M Return %: -3.64
• 5Y CAGR %: 22.91
• % Away From 52W High: 42.34
• 5Y Avg Net Profit Margin %: 12.34

Long Term Fertilizer Stocks – FAQs

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.