Tag Agrochemicals

Sumitomo Chemical India Ltd
Sumitomo Chemical India Ltd: Growth, Market Trends & Investment Insights in Agrochemicals

Business and Industry Overview: 

Sumitomo Chemical India Ltd (SCIL) is a company that makes chemicals for farming, pest control, and animal nutrition. It is part of Sumitomo Chemical Company Limited, Japan, a well-known global chemical company. SCIL started in India on 15th February 2000 and has helped farmers, industries, and households with safe and high-quality products. To expand its business, it merged with Excel Crop Care Limited on 31st August 2019, making it stronger and adding more products. On 27th January 2020, SCIL was listed on the Bombay Stock Exchange (BSE), allowing the public to invest in its shares. The company is led by Mr. Ray Nishimoto and Mr. Chetan Shah. Its parent company, Sumitomo Chemical (Japan), was founded in 1913 to solve pollution problems from a copper mine. Sumitomo itself dates back to the 16th century. SCIL makes crop protection products like insecticides, herbicides, and fungicides to help farmers protect their crops. It also makes pest control products for homes and animal nutrition products to keep livestock healthy. SCIL follows three key values: innovation, helping society, and building trust. It sells its products across India and exports to many countries. As of March 2025, its stock price is ₹535 per share, and the company is worth ₹26,797 crore. SCIL continues to grow by focusing on sustainability, innovation, and trust while helping farmers and industries with better solutions. 

The Indian agrochemicals industry is growing quickly. It is expected to grow by 9% per year from FY25 to FY28. This growth is due to many factors. The government is supporting the industry. Companies are increasing their production. There is more demand for agrochemicals both in India and in other countries. This will make the market reach US$ 14.5 billion by FY28, up from US$ 10.3 billion today. India’s agrochemical exports have been growing too. Between FY19 and FY23, exports grew by 14% per year. In FY23, India’s exports reached US$ 5.4 billion. Imports grew slower at 6% per year. This means India is a net exporter of agrochemicals. Among the different agrochemicals, herbicides (weed control chemicals) have grown the fastest. From FY19 to FY23, herbicide exports grew by 23% per year. The share of herbicides in total exports went from 31% to 41% during this time. India is focusing its exports on just a few countries. The top 5 countries are Brazil, the USA, Vietnam, China, and Japan. These countries make up 65% of India’s agrochemical exports. India still uses fewer agrochemicals than other countries. The use is just 0.6 kg per hectare of land. The Asian average is 3.6 kg per hectare, and the global average is 2.4 kg per hectare. This shows that India has a lot of room to increase its agrochemical use. In conclusion, the Indian agrochemicals industry is growing fast. The demand for agrochemicals is increasing both in India and in exports. The industry is becoming more focused on exports, especially to key markets. As farming practices improve, India will likely use more agrochemicals. This will lead to further growth in the industry. 

Sumitomo Chemical India Limited (SCIL) is a leading company in the Indian agrochemicals market. It produces products like pesticides, herbicides, fungicides, and biopesticides. These products help farmers protect their crops from pests, weeds, and diseases. SCIL’s products are known for being safe and effective. SCIL is part of Sumitomo Chemical Corporation, a well-known company in Japan. This gives SCIL access to the latest technology and expertise. SCIL spends a lot of money on research and development to make better and more efficient products. This helps them meet the needs of farmers in India and around the world. The Indian government supports the agrochemical industry. This makes it easier for SCIL to grow and expand. In 2019, SCIL merged with Excel Crop Care. This merger helped SCIL increase its product range and reach more customers. SCIL is also focused on sustainability. It makes eco-friendly products like biopesticides, which are better for the environment. More people are looking for products that are safe for the earth. SCIL is meeting this demand by offering these products. SCIL has grown its exports. It sells its products to countries like Brazil, the USA, China, and Japan. These countries need a lot of agrochemicals, and SCIL has become an important supplier. Exporting to these countries helps SCIL earn more and grow its business. In summary, SCIL is strong because of its wide range of high-quality products, focus on innovation, and support from the government. The company is also expanding internationally by selling to other countries. All these factors help SCIL stay ahead in the agrochemicals market. 

Latest Stock News: 

On March 27, 2025, Osho Krishan from Angel One recommended buying Sumitomo Chemical India Ltd stock. This advice comes after the company’s stock showed strong performance, with both an increase in price and trading volume in the past week. The stock has managed to stay above its 200-day simple moving average (SMA), a common indicator of long-term trends, signaling a bullish or positive outlook. It has also shown a positive crossover of the 21-day exponential moving average (DEMA) over the 50-day and 100-day DEMA, which further suggests an upward trend. 

Despite some downward pressure on the stock market caused by Donald Trump’s announcement of a 25% tariff on US auto imports starting April 2, 2025, Sumitomo Chemical has held strong. The overall market was affected by the announcement, causing Nifty 50 and Sensex to start the day with losses. However, Sumitomo Chemical’s stock has stood out, continuing to show strong performance despite these challenges. 

Krishan recommends buying Sumitomo Chemical India Ltd stock between ₹520 and ₹525 per share. For safety, he advises setting a stop loss at ₹495 to limit potential losses if the price drops. The target price for the stock is expected to reach ₹560-570, offering a good potential return. 

In short, even with the ongoing market volatility due to external factors like tariffs, Sumitomo Chemical is showing a solid bullish trend and is expected to perform well shortly. This makes it a good stock to buy for those looking for a strong performer in the agrochemicals industry. 

Potentials: 

Sumitomo Chemical India Ltd has big plans for the future. They want to make new products that help farmers safely grow crops. These products will be eco-friendly and protect the environment. They plan to make products like biopesticides that are safer than regular pesticides. The company also wants to sell its products in more countries. They plan to reach places like Brazil, the USA, and Japan to help more farmers worldwide. To meet the growing demand, Sumitomo Chemical India will increase production. They will use new technology to improve their factories and produce more products. They will also continue researching to make their products better. The company will also make it easier for farmers to buy products. They will improve their online services and customer support to help farmers quickly. The company cares about the environment. They want to reduce their impact on nature and make eco-friendly products that help farmers grow crops and protect the planet. In short, Sumitomo Chemical India plans to grow by making safer products, selling in more countries, producing more, and being more eco-friendly. They want to help farmers and protect nature. 

Analyst Insights: 

  • Market capitalisation: ₹ 27,723 
  • Current Price: ₹ 555 
  • 52-Week High/Low: ₹ 628 / 359 
  • Stock P/E: 54.0 
  • Dividend Yield: 0.16% 
  • Return on Capital Employed (ROCE): 20.8% 
  • Return on Equity: 15.3% 

Sumitomo Chemical India Ltd (SCIL) is a strong player in the agrochemicals and related sectors. The company has worked hard to reduce its debt, making it almost debt-free, which is a good sign for financial health. This allows it to focus on growth and expansion without the burden of heavy interest payments. Additionally, SCIL has been consistent in paying dividends to its investors, with a dividend payout ratio of 34.4%. This is an indication that the company is generating enough profits to share with its shareholders. The company is doing well in terms of profitability. Its Return on Capital Employed (ROCE) is 20.8%, which shows it is using its capital effectively to generate profits. Its Return on Equity (ROE) stands at 15.3%, meaning it is providing good returns to its shareholders. These numbers are better than many of its competitors, suggesting that SCIL is performing well in comparison. SCIL has a wide range of products that include insecticides, weedicides, fungicides, rodenticides, and many others. It also has some biological products, which come from its subsidiary, Valent Biosciences in the USA. The company has expanded its market presence globally, including in Africa, and is now even stronger after merging with Excel Crop Care, which has added generics to its product portfolio. Despite its slow sales growth of just 4.97% over the last five years, the company remains strong due to its diversified product offerings and established market presence. SCIL has a strong combined marketing network, especially after integrating Excel Crop Care. This has allowed SCIL to move up in the rankings of India’s crop protection industry. SCIL’s stock price has been fluctuating, but its consistent profit margins and efforts to reduce debt show that it is a stable and long-term investment option. The company’s strong market presence, wide product portfolio, and healthy financial ratios make it a good candidate for investors looking for steady returns in the agrochemical sector. 

NACL Industries Ltd
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.