Shares of this small-cap company, specializing in the production of agro-chemicals such as herbicides, insecticides, and fungicides, have gained attention following updates to its financial guidance. The company has expressed optimism about its revenue growth and profitability, supported by improved operational efficiency and sustained business momentum.
Price Movement
During Friday’s trading session, Dhanuka Agritech Ltd’s share price reached an intraday high of Rs.1,439.00 per share, rising 2 percent from its previous closing price of Rs.1,413.20 apiece. The share has since retreated and closed at Rs.1,403.00 each. Over the past five years, the shares have delivered over 240 percent returns.
What happened
The company has revised its topline guidance to a growth of approximately 16 percent for the next quarter and the full year. This reflects an optimistic outlook driven by improved operational performance and market conditions.
Earlier, the company had guided a 100-basis point reduction in EBITDA margin. However, this has now been revised to a 100-basis point improvement over last year, resulting in an overall 200-basis point improvement compared to the previous guidance. The revenue target for the next three years remains set at Rs.250 crore.
Manufacturing and Distribution
Dhanuka operates three advanced manufacturing facilities located in Rajasthan, Gujarat, and Jammu & Kashmir and has an extensive distribution network with over 7,200 distributors and nearly 75,000 dealers across India, serving approximately 10 million farmers.
The company’s R&D division features state-of-the-art laboratories and partnerships with leading agrochemical firms from the US, Japan, and Europe, driving innovation and technological advancements.
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Product Portfolio
Dhanuka provides a diverse range of agrochemical solutions tailored to various agricultural needs. Its portfolio includes herbicides for managing unwanted vegetation, fungicides to protect crops from fungal diseases, insecticides to control pest infestations and plant growth regulators (PGRs) that enhance plant growth and productivity.
The company prioritizes eco-friendly products aligned with Integrated Crop Management (ICM) and Integrated Pest Management (IPM) practices, ensuring they are safe for humans and beneficial organisms.
Financials
According to its recent financial updates, Dhanuka Agritech Ltd reported consolidated revenue of Rs.654 crores in Q2 FY25, marking a 6 percent decrease from Rs.618 crores in Q2 FY24. In addition, the company saw its net profit rise 16 percent to Rs.118 crores, compared to Rs.102 crores in the same period last year.
Shareholding Pattern
As per the shareholding pattern for September 2024, the promoters of Dhanuka Agritech Ltd hold a 70.29 percent stake, while Foreign Institutional Investors (FIIs) own 2.01 percent. Domestic Institutional Investors hold 19.03 percent and Retail investors hold 8.68 percent of the company’s shares.
About the Company
Dhanuka Agritech Limited, founded in 1985, is an agrochemical company in India offering products such as herbicides, insecticides, fungicides, and plant growth regulators. It has an extensive distribution network comprising over 7,000 distributors and 75,000 retailers, serving approximately 10 million farmers nationwide.
Written by – Siddesh S Raskar
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