In India, one of the most important sectors is agriculture which has huge space for growing consumption. The sector needs tried and correct products like tractors, pesticides, and the present system of irrigation among the other requirements. With the introduction of useful and new agricultural products like pesticides, biological hybrid seeds, organic fertilizers, and many more have enough room for development. Today let us have a look at the top Agricultural high EPS stocks for the upcoming.
Top 4 Agricultural High EPS Stocks For 2021
The earning per share of a company or an EPS is said to be its net profit or the profit after tax that is divided by the total amount of shares that are outstanding. Even though the payout of the dividend is not directly connected to the EPS, it is fair to notice that only the companies that have growing or a consistently stable earning on every share, pay correct dividends to their shareholders. Even though all dividends are quite subjective and there are many factors that are taken into account before paying a dividend, investors who seek income from dividends should look at the EPS of the company before they invest. So to make your job easy here are some of the best agricultural stocks to buy 2021 India.
This EPS computation can be used by the analysts to undertake a fundamental examination of an entity. A company that has a greater earnings per share is considered as more prosperous and also financially stable. These earnings per share are used by the analysts in order to determine the financial health of the company.
Now that you have understood what EPS stocks are, let us start with the list of agriculture stocks in India that you can consider for 2021.
Bharat Rasayan Limited (BRL) manufacturer’s Technical Grade Pesticides and Intermediates. They have production facilities in Rohtak, Haryana, and also in Dahej, Gujarat. The stock has returned 92.28% in more than 3 years when compared to the 61.01% for the Nifty Smallcap 100. The EPS of the company is 377.02 which is high and is pretty good for investors. This was also the best agricultural stock to buy 2020.
This company has consistently developed good results in finances, with a Net Profit Growth rate of nearly 40.8% CAGR for more than the last 5 years. Along with that, the company offers a great ROE which is 31.9% for 2021.
Bayer CropScience is an Indian company that manufactures, distributes, and sells fungicides, pesticides, insecticides, herbicides, etc. this company has a good amount of cash in its hand to cover up any contingent liability. In the fiscal year that ended on March 31, 2021, the spendings of the company was less than 1% of its functioning revenues on the interest charges, and 8.5% of the cost of the staff. This is surely among the Agricultural High EPS Stocks in India presently.
The yearly revenue growth rate of the company is 37.67% which has crossed its 3 year CAGR of 25.94%. For more than 3 years, this agricultural high EPS stock has returned 335.25% compared to Nifty 100 which was 61.69%. This company that was founded in 1946 is a Large Cap business in the AgroChemical / pesticides industry that has a market cap of Rs 48,608.21 crore.
Gujarat Narmada Valley Fertilizers & Chemicals (GNFC)
Gujarat Narmada Valley Fertilizers & Chemicals Ltd was founded in 1976 and is a small capital business that deals in Fertilizers and has a market capitalization of Rs 6,301.45 crore. The stocks of this company have returned 11.77% for more than 3 years when compared to the Nifty Midcap 100 of 70.22%.
But before you invest in these agricultural high EPS stocks, there are certain things that you should remember. The Indian ambiance has been notoriously volatile in the past with erratic rainfalls across the country. In the event when the rainfall is more or less for a given year, the agricultural activities will face a backdrop. So before investing in agriculture stocks 2021 India, you should always consider the weather.