Dhanuka Agritech Limited (DHANUKA) AI Stock Analysis

• Market Cap: ₹44.59B
• Dividend Yield: 0.17%
• Average Volume (3M): 1.56K
• Price to Earnings (P/E): 33.2
• Beta (1Y): 1.14
• Revenue Growth: 4.92%
• EPS Growth: 4.47%
• Country: IN
• Employees: 1,136
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Inputs
• EPS (TTM): 8.90
• Shares Outstanding: 45,578,323
• 10 Day Avg. Volume: 846
• 30 Day Avg. Volume: 1,565
• PEG Ratio: 0.77
• Price to Book (P/B): 4.04
• Price to Sales (P/S): 2.79
• P/FCF Ratio: 82.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 61.13
• Revenue Forecast (FY): ₹20.38B

• Rating: 64 Neutral
• Price Target: ₹1,047.00 ▼(-6.04% Downside)
• Action: Reiterated Date: 11/19/25
• Date: Action: Reiterated 11/19/25

Dhanuka Agritech Limited's overall stock score reflects strong financial performance, which is the most significant factor. However, the bearish technical indicators and moderate valuation score weigh down the overall score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong Profitability

Sustained gross margin near 40% and a mid-teens net margin indicate durable pricing power and cost control in formulations. These margins provide an earnings buffer against input-cost volatility, support reinvestment in distribution and product portfolio, and underpin long-term cash generation.

Conservative Capital Structure

Very low leverage and a high equity base give the company financial flexibility to fund growth internally, weather cyclical agricultural downturns, and pursue strategic opportunities. Strong ROE shows efficient equity usage, reducing reliance on external financing over time.

Healthy Revenue & Cash Growth

Double-digit revenue growth alongside exceptional free cash flow expansion reflects scalable sales and improving cash conversion. Strong operating cash relative to income supports capex, working capital needs and shareholder returns without stressing the balance sheet long term.

Negative Factors

EPS Contraction

Negative EPS growth despite revenue expansion signals per-share earnings pressure that may stem from cost mix, share count changes, or non-recurring items. Persistent EPS decline undermines shareholder returns and may indicate pockets of margin or capital allocation weakness requiring management focus.

Asset Utilization & Cash Conversion

The balance sheet notes suboptimal asset utilization and cashflow commentary highlights further optimization potential. Inefficient asset turnover or extended working capital ties up capital, limiting return on assets and constraining the company’s ability to scale profitably without improving operational efficiency.

Agricultural Seasonality & Regulatory Risk

Business reliance on cropping cycles, monsoon variability, input availability and regulatory approvals creates structural demand and margin volatility. These industry-level exposures can produce recurring earnings swings and require product/design diversification and regulatory management to stabilize long-term cash flows.

Dhanuka Agritech Limited Business Overview & Revenue Model

Company Description

Dhanuka Agritech Limited manufactures and sells a range of agro-chemicals in India. It offers herbicides, insecticides, fungicides, and plant growth regulators in various forms, such as liquid, dust, powder, and granules. The company also generates electricity. It operates through a network of distributors/dealers. The company also exports its products. Dhanuka Agritech Limited was incorporated in 1985 and is based in Gurugram, India.

How the Company Makes Money

Dhanuka Agritech primarily makes money by selling branded crop protection and crop-care products in India. Its revenue model is centered on (1) product sales across major agrochemical categories—herbicides, insecticides, fungicides, and plant growth regulators/other specialty crop-care products—where demand is driven by cropping patterns, pest/weed/disease incidence, and farm input usage. (2) Branding and formulation/marketing economics: Dhanuka markets products under its brand portfolio and earns margins on the sale of these formulations; depending on the product, this can involve sourcing active ingredients and/or technicals and selling finished formulations through its channels. (3) Distribution-led sales: the company generates sales through a large domestic distribution network (distributors/retailers and other channel partners) that enables reach across key agricultural states; revenues are recognized from sales to these channels and/or end-market arrangements consistent with its go-to-market model. (4) Portfolio and technology access: the company has historically used strategic tie-ups/technology collaborations for certain molecules/products to expand its portfolio and monetize them via domestic commercialization; specific current partners or agreement terms: null. Key factors influencing earnings typically include monsoon/seasonality (kharif/rabi), commodity/crop prices and farmer spending power, competitive intensity and pricing, regulatory approvals and compliance for crop protection products, and input cost/availability (e.g., active ingredients) impacting gross margins.

Dhanuka Agritech Limited Financial Statement Overview

Summary

Dhanuka Agritech Limited demonstrates solid financial performance with strong revenue and profit growth, low leverage, and effective cash management. The company has a robust Gross Profit Margin of 40.1% and a Net Profit Margin of 14.6%. The Debt-to-Equity Ratio is low at 0.05, indicating financial stability. However, there is room for improvement in asset utilization and cash conversion.

Income Statement

Dhanuka Agritech Limited has shown a strong revenue growth trajectory, with a Revenue Growth Rate of 17.44% for the most recent year. The Gross Profit Margin remains robust at approximately 40.1%, and the Net Profit Margin improved to 14.6%, indicating effective cost management and strong profitability. Both EBIT and EBITDA margins have shown positive trends, contributing to a solid financial performance.

Balance Sheet

The company maintains a healthy Debt-to-Equity Ratio of 0.05, indicating low leverage and financial stability. Return on Equity (ROE) is strong at 21.2%, reflecting efficient use of equity capital to generate profits. The Equity Ratio of 77.9% highlights a solid equity base, though there is room for improvement in asset utilization.

Cash Flow

Free Cash Flow Growth Rate is a remarkable 52.12%, showing enhanced cash generation capabilities. The Operating Cash Flow to Net Income Ratio of 0.88 and Free Cash Flow to Net Income Ratio of 0.23 indicate that the company is generating sufficient cash to support its net income, although there is potential for further optimization in cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	20.14B	20.35B	17.33B	17.00B	14.63B	13.74B
Gross Profit	7.49B	8.16B	6.59B	5.85B	5.23B	5.09B
EBITDA	4.23B	4.17B	3.62B	3.23B	2.97B	3.02B
Net Income	2.80B	2.97B	2.39B	2.34B	2.09B	2.11B
Balance Sheet
Total Assets	20.29B	18.00B	15.79B	14.05B	13.12B	11.31B
Cash, Cash Equivalents and Short-Term Investments	1.35B	1.24B	723.49M	992.53M	1.98B	1.88B
Total Debt	318.38M	742.33M	269.79M	335.17M	318.07M	484.30M
Total Liabilities	4.86B	3.97B	3.23B	3.44B	3.52B	3.35B
Stockholders Equity	15.43B	14.03B	12.56B	10.61B	9.60B	7.96B
Cash Flow
Free Cash Flow	255.12M	686.61M	451.24M	120.50M	444.51M	2.18B
Operating Cash Flow	398.19M	2.63B	1.34B	1.36B	1.04B	2.31B
Investing Cash Flow	191.17M	-1.43B	-808.93M	25.65M	-426.01M	-1.27B
Financing Cash Flow	-554.26M	-1.20B	-565.42M	-1.37B	-608.00M	-1.29B

Dhanuka Agritech Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1114.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DHANUKA, the sentiment is Negative. The current price of 1114.3 is above the 20-day moving average (MA) of 1034.58, above the 50-day MA of 1079.43, and below the 200-day MA of 1400.42, indicating a bearish trend. The MACD of -37.45 indicates Positive momentum. The RSI at 36.51 is Neutral, neither overbought nor oversold. The STOCH value of 26.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DHANUKA.

Dhanuka Agritech Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHARDACROP	78 Outperform	₹89.25B	13.57	―	1.02%	33.23%	107.47%
DHANUKA	64 Neutral	₹44.59B	33.24	―	0.17%	4.92%	4.47%
RALLIS	63 Neutral	₹46.04B	700.00	―	0.92%	0.91%	18.12%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BHARATRAS	61 Neutral	₹21.23B	23.16	―	0.02%	6.39%	-15.53%
IPL	57 Neutral	₹16.17B	21.94	―	0.43%	30.14%	48.14%
HERANBA	49 Neutral	₹6.88B	-10.64	―	0.39%	―	―

Dhanuka Agritech Limited Corporate Events

Dhanuka Agritech Shares Audio of Analysts Call on Q3 FY26 Unaudited Results

Dhanuka Agritech Limited has notified the stock exchanges that it has made available the audio recording of its analysts and investors call discussing the unaudited financial results for the quarter and nine months ended December 31, 2025. The financial results, which were approved by the company’s board of directors at its meeting on February 5, 2026, have been followed by this investor interaction, underscoring the company’s ongoing compliance with disclosure regulations and its efforts to maintain transparency and engagement with market participants.

Dhanuka Agritech Closes Trading Window Ahead of December Quarter Results

Dhanuka Agritech Limited has announced the closure of its trading window for company shares from 1 January 2026 until 48 hours after it declares its unaudited financial results for the quarter and nine months ending 31 December 2025, in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code. During this period, designated persons covered under the company’s insider trading code, as well as anyone in possession of unpublished price-sensitive information, are barred from trading in the company’s shares, underscoring ongoing regulatory compliance and efforts to safeguard market integrity ahead of forthcoming financial disclosures.