NACL Industries Stock Surges 45% in 5 Sessions – Key Factors Behind the Rally
Business and Industry Overview:
NACL Industries Ltd is an Indian company that makes chemicals for farming. These chemicals help farmers protect crops from insects, weeds, and diseases. This helps crops grow well and gives farmers a better harvest. The company started in 1993 and is based in Hyderabad. It has big factories in Andhra Pradesh and Gujarat, where these products are made. It also has a research center in Telangana, where new and better products are developed. NACL sells its products all over India and in more than 30 countries. It also makes important chemicals for other companies. The company makes insect killers, weed removers, fungus controllers, and plant growth boosters. It also produces special chemicals like Acetamiprid, Amitraz, Carbendazim, and Imidacloprid, which are used in farming. NACL ensures its products are safe and of good quality. It also takes care of nature while making these chemicals. The company has won many awards for its work. It is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). NACL is growing by helping farmers and improving its products.
The agrochemical industry makes chemicals that help farmers protect crops from insects, weeds, and diseases. These chemicals help crops grow well and give farmers a better harvest. India is a big farming country, and agrochemicals are important to increase food production. The industry is growing fast because more farmers need these products. The Indian agrochemical market is expected to grow by 9% every year from FY25 to FY28, reaching US$ 14.5 billion by FY28 from US$ 10.3 billion now. This growth is happening because of government support, more production, high demand, and new products. India also exports a lot of agrochemicals. Between FY19 and FY23, exports grew 14% every year, reaching US$ 5.4 billion in FY23. The country imports fewer agrochemicals than it exports, making it a net exporter. Herbicides are the fastest-growing export, increasing 23% per year, and now make up 41% of total exports, up from 31%. India mainly exports agrochemicals to Brazil, the USA, Vietnam, China, and Japan, which together buy 65% of India’s exports. However, Indian farmers use fewer agrochemicals compared to other countries. In India, the use is only 0.6 kg per hectare, while the Asian average is 3.6 kg/ha and the global average is 2.4 kg/ha. This means there is a big opportunity for growth in India’s agrochemical industry.
NACL Industries Ltd is a well-known company in the agrochemical industry. It makes products that help farmers protect crops and grow more food. The company offers insect killers, weed removers, fungus controllers, and plant growth boosters. It has factories in Andhra Pradesh and Gujarat and a research center in Telangana, where it develops new and better products. NACL sells its products across India and in more than 30 countries, which helps it grow in global markets. The company has a strong network of distributors, making its products easily available to farmers. It is also working on eco-friendly solutions to reduce harm to nature. NACL is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), which gives it financial strength. With its good reputation, quality products, and strong presence in India and abroad, NACL competes well with other agrochemical companies.
Latest Stock News:
On March 12, 2025, Coromandel International, a company from the Murugappa Group, announced that it will buy 53% of NACL Industries for ₹820 crore. This will make Coromandel a big player in the crop protection business in India. The deal is expected to help both companies grow. Even though the stock price fell earlier, NACL Industries reached a new 52-week high on March 17, 2025, at 10:45 AM IST. The stock went up and down a lot butlater recovered well. This shows that many investors still trust the company’s future, especially after the big deal with Coromandel. On 18 March 2025, NACL Industries Ltd’s stock fell by 9.99% and was trading at Rs 99.72 at 14:33 IST. It was the biggest loser in the BSE’s ‘B’ group. A total of 2.65 lakh shares were traded, which is much higher than the one-month average of 1.21 lakh shares. This means more people were selling the stock than usual.
Potentials:
NACL Industries Ltd is planning to grow its business and make better agrochemical products. The company will expand its factories in Andhra Pradesh and Gujarat to produce more chemicals for farming. It is also investing in research to create new and eco-friendly solutions for farmers. NACL wants to sell more products in other countries like Brazil, the USA, Vietnam, China, and Japan. Recently, Coromandel International decided to buy 53% of NACL for ₹820 crore, which will help NACL grow faster. Coromandel will also try to buy more shares from the public. This deal will help both companies work together to make better products and expand in the market. NACL is also focusing on sustainable farming by making chemicals that are safe for the environment. Experts believe the agrochemical industry will keep growing, and this deal will help NACL become a stronger company in the future.
Analyst Insights:
- Market capitalisation: ₹ 2,052 Cr.
- Current Price: ₹ 103
- 52-Week High/Low: ₹ 116 / 48.6
- Dividend Yield: 0.00 %
- Return on Capital Employed (ROCE): -0.04 %
- Return on Equity: 10.8 %
NACL Industries’ sales grew by 14.5% in Q3 FY24,reaching₹556.4 crore (up from₹485.9 crore in Q3 FY23). This shows strong demand in reaching₹556.4 after tax (PAT) fell by 38% to₹14.9 crore (downfrom₹24 crore in Q3 FY23) due to higher costs and weaker exports. The EBITDA margin declined to 8.9% from 11.8% last year, meaning the company is making less money from its sales. Finance costs increased by 37%to₹11 crore, and cash reserves dropped from ₹21 crore to ₹16 crore, raising concerns about financial health. While the company is growing, its profits and cash flow are under pressure. It is best to hold the stock and wait for from₹21 and lower costs before deciding to buy more or sell.