Reviews

Review of 1 stock recommended in the past.

DHANUKA AGRITECH LTD 
Ticker: 507717
FV:  ₹2 
52-Week H/L: ₹904.90/603.05

We recommended Dhanuka Agritech Ltd at Rs 824.35 per share in Vol. 39, Issue 47 (September 11, 2023). Dhanuka Agritech produces diverse agrochemicals, including herbicides, insecticides, fungicides, and plant growth regulators, available in liquid, dust, powder, and granular forms. On a consolidated basis in Q1FY24 the company reported sales of Rs 369.07 crore, which was a 6 per cent decline as compared to Q1FY23, operating profit declined by 26.5 per cent to Rs 50.25 crore, while net profit decreased by 32.9 per cent to Rs 32.94 crore. The delayed monsoon has impacted agrochemical firms, including Dhanuka, due to a rain deficit till mid-June. In Q1FY23, Dhanuka's higher PAT was boosted by Rs 12 crore from real estate sales, making Q1FY24 appear weaker. The company is ramping up production with bio-cyhalothrin and adding Lambda-cyhalothrin soon, targeting 350 metric tons this fiscal with an annual capacity of 600 metric tons. Additionally, Dhanuka introduced new products, including herbicides for maize and sugarcane, insecticide for paddy VPS, and six biological projects, which are expected to add good volumes. Hence, we recommend HOLD.