1. At a Glance
Dhanuka Agritech Ltd is India’s mid-cap silent killer—of pests and investor doubt. With 300+ product registrations and a spotless debt record, the company is trying to do for crops what Shark Tank does for startups: boost survival rates.
2. Introduction with Hook
Imagine you’re a humble potato plant in Punjab. Your nightmares aren’t about drought or floods. They’re about whiteflies and fungal genocide. But fear not—Dhanuka is here, armed with a chemical cocktail that would make Breaking Bad look like Breaking Breads.
- Market Cap: ₹7,850+ Cr
- ROCE: A crop-fat 28%
- Q4 FY25 OPM: 25% (that’s not margin, that’s domination)
This company makes products that help Indian farmers sleep at night—and it’s doing so while minting crisp cash margins.
3. Business Model (WTF Do They Even Do?)
Dhanuka is in the business of protecting the food you eat (ironically, by spraying stuff you wouldn’t eat).
- Segments: Herbicides (35%), Insecticides (30%), Fungicides (20%), Plant Growth Regulators & Others (15%)
- SKUs: 300+ products, ~90 in active use
- Geographic Coverage: Pan-India, strong semi-urban rural presence
- Distribution: Through 7,500+ distributors and retailers
- Technology Tie-ups: Collaborates with Japanese, US and EU agrochemical players for product tech
Business model: Buy chemicals in bulk, add R&D magic, bottle them with regional branding flair, and sell with a “Fasal Bhi, Faayda Bhi” tagline.
4. Financials Overview
Revenue & Profit (Consolidated):
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|
| FY21 | 1,387 | 211 | 45.21 |
| FY22 | 1,478 | 209 | 44.85 |
| FY23 | 1,700 | 234 | 51.23 |
| FY24 | 1,759 | 239 | 52.46 |
| FY25 | 2,035 | 297 | 65.15 |
Key Highlights:
- Sales CAGR (3Y): 11%
- PAT CAGR (3Y): 12%
- EPS growth consistent and cleaner than your kitchen countertop
Dhanuka doesn’t grow rapidly. It grows predictably—like a weed-resistant soybean plot.
5. Valuation
Let’s break down a fair value range for Dhanuka:
Base Case:
- EPS FY26E: ₹70
- P/E Range: 23x–27x
- Fair Value Range: ₹1,610 – ₹1,890
Bull Case (high rainfall + high pesticide usage + global tie-ups):
- EPS FY26E: ₹75
- P/E: 28x
- FV: ₹2,100
Bear Case (bad monsoon + raw material cost spike):
- EPS FY26E: ₹62
- P/E: 20x
- FV: ₹1,240
EduInvesting verdict: It’s not cheap, but it’s clean. No debt. Healthy margins. Investor-friendly ROE. Feels like Tata Consumer’s humble, pesticide-spraying cousin.
6. What’s Cooking – News, Triggers, Drama
- Integrated Annual Report FY25: Final dividend declared ₹2/share
- Q4 FY25 results: Highest OPM ever—25%.
- BRSR disclosures: Sustainability angle getting stronger
- Product Expansion: Preparing for biotech-based agro solutions
No legal drama, no boardroom chaos. Boring? Yes. Profitable? Also yes.
7. Balance Sheet
| Year | Equity Cap | Reserves | Borrowings | Total Assets |
|---|---|---|---|---|
| FY23 | ₹9 Cr | ₹1,052 Cr | ₹34 Cr | ₹1,405 Cr |
| FY24 | ₹9 Cr | ₹1,247 Cr | ₹27 Cr | ₹1,579 Cr |
| FY25 | ₹9 Cr | ₹1,394 Cr | ₹74 Cr | ₹1,800 Cr |
Key Observations:
- Borrowings remain negligible (less than Deepak Nitrite’s controversies)
- Reserve buildup is steady
- Fixed assets grew 50% YoY—CAPEX cycle likely incoming
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY23 | ₹136 Cr | ₹3 Cr | ₹-137 Cr | ₹2 Cr |
| FY24 | ₹134 Cr | ₹-81 Cr | ₹-57 Cr | ₹-3 Cr |
| FY25 | ₹263 Cr | ₹-143 Cr | ₹-120 Cr | ₹0 Cr |
Key Takeaways:
- CFO more than doubled in FY25.
- Investing activity rising = new plant or R&D spending
- Cash retained like a squirrel before winter
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 27% | 27% | 28% |
| ROE | 21% | 22% | 22% |
| OPM | 16% | 19% | 20% |
| Debtor Days | 73 | 72 | 82 |
| CCC (days) | 133 | 174 | 168 |
Verdict:
Financially, this company is a marathoner with six-pack abs. Minor increase in working capital cycle though—blame slower collections in rural Bharat?
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | Net Profit | EPS |
|---|---|---|---|---|
| FY23 | ₹1,700 Cr | ₹279 Cr | ₹234 Cr | ₹51.2 |
| FY24 | ₹1,759 Cr | ₹327 Cr | ₹239 Cr | ₹52.5 |
| FY25 | ₹2,035 Cr | ₹417 Cr | ₹297 Cr | ₹65.1 |
Every line item moves like a tractor on fresh tarmac: steady, unstoppable, but not exactly turbocharged.
11. Peer Comparison
| Company | P/E | ROE | OPM | Mkt Cap |
|---|---|---|---|---|
| Dhanuka Agritech | 26.9 | 22% | 20% | ₹7,853 Cr |
| PI Industries | 37.5 | 17.5% | 27.3% | ₹62,295 Cr |
| Sumitomo | 58.3 | 18.8% | 20.1% | ₹29,271 Cr |
| Bayer Crop | 50.1 | 19.9% | 12.6% | ₹28,475 Cr |
| Rallis India | 40 | 6.6% | 11.9% | ₹6,838 Cr |
TL;DR: Dhanuka is criminally underrated. Its peers are expensive without proportionally better metrics. The valuation mismatch is the size of a farmyard goat.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 70.32% (stable AF)
- FIIs: 2.19% (slowly creeping back)
- DIIs: 18.06%
- Public: Just under 10%
No pledges. No dilution drama. This is the kind of stock that says, “I don’t need hype. I’ve got EBITDA.”
13. EduInvesting Verdict™
Dhanuka is the pesticide company that doesn’t need a headline to keep growing. It’s not exciting. It’s not flashy. But it consistently grows revenue, profits, and returns with no drama.
It’s like owning farmland in Gujarat—you won’t impress your cousin from Bengaluru, but it’ll pay your bills forever.
So while the market drools over tech stocks with vaporware business models, Dhanuka just goes back to spraying crops, collecting payments, and compounding your capital.
Metadata
– Written by EduInvesting Research | July 17, 2025
– Tags: Agrochemicals, Midcap, Rural India, Debt-Free, Dhanuka Agritech, Farming Stocks, High ROCE, Value Investing
