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Dhanuka Agritech

Current Market Price-: Rs 722

Dhanuka Agritech is an almost 53 years old  completely debt free company. The company is engaged in manufacturing a wide range of agro-chemicals like herbicides, insecticides, fungicides, plant growth regulators in various forms such as liquid, dust, powder and granules.

Foundation of the company was laid by Late Shri Chiranjilal Dhanuka in mid 1980’s . During the journey of almost 4 decades in the agrochemical industry the Company has come very far.  Today Dhanuka is among top most agro chemical companies in India.

Dhanuka has solutions for all major crops grown in the country including cotton, paddy, wheat, sugarcane, pulses, fruits & vegetables, plantation crops and others. The Company’s impetus is on marketing quality and eco-friendly chemistry which comply with ICM/IPM, and is safe to human beings and beneficial to flora & fauna. Dhanuka is recognized as one of the leader’s amongst Indian Agrochemical Companies in branded agrochemical product sales. The Company has developed several Public-Private and Private-Private partnerships for agricultural extension projects which are accelerating the transfer of improved agriculture technology to the Indian farming community.


Also commonly known as weedkillers, are substances used to control unwanted plants.Selective herbicides control specific weed species, while leaving the desired crop relatively unharmed, while non-selective herbicides can be used to clear waste ground, industrial and construction sites, railways and railway embankments as they kill all plant material with which they come into contact.


Fungicides are biocidal chemical compounds or biological organisms used to kill parasitic fungi or their spores. A fungistatic inhibits their growth. Fungi can cause serious damage in agriculture, resulting in critical losses of yield, quality, and profit. Fungicides are used both in agriculture and to fight fungal infections in animals.

Insecticides are substances used to kill insects. They include ovicides and larvicides used against insect eggs and larvae, respectively. Insecticides are used in agriculture, medicine, industry and by consumers.

Plant growth regulator -: Plant growth regulators (PGRs) are chemicals used to modify plant growth such as increasing branching, suppressing shoot growth, increasing return bloom, removing excess fruit, or altering fruit maturity. Numerous factors affect PGR performance including how well the chemical is absorbed by the plant, tree vigour and age, dose, timing, cultivar, and weather conditions before, during, and after application.

Dhanuka has Pan-India presence through its marketing offices in all major states across India. The 3 manufacturing units with 40 warehouses and network of over 14 branch offices across the Indian geography caters to 6,700 distributors & approximately 75,000 dealers. Dhanuka’s workforce with more than 1,000 techno–commercial staff, supported by a strong R&D division and a robust distribution network helps Company to reach out to approximately 10 million Indian farmers with its products and services. Dhanuka’s R&D division has world class NABL Accredited Laboratories and has International collaboration with the world’s seven leading agrochemical Companies from US, Japan and Europe which helps Dhanuka to introduce the latest technology in Indian farmlands.

Dhanuka has technical collaborations with Japanese, American and European corporations that helps the Company to introduce new chemistry.

Dhanuka has three state of art manufacturing facilities in Rajasthan, Gujarat and J&K with well-equipped Quality Testing Facilities. The R&D center is located at Gurgaon, which is recognized by the Ministry of Science & Technology for generating scientific data and evaluation of new chemistry.

Dhanuka Agritech Limited with more than 150 registrations including Herbicides, Insecticides, Fungicides and Plant Growth Regulators /Bio- Stimulants and with over 350 active SKUs has one of the most extensive market penetration in Agrochemical Industry. 

Dhanuka Agritech Limited is one of India’s leading agrochemical Company and is listed by Forbes Magazine in the category of “200 Best under A Billion Companies in Asia Pacific”. Dhanuka has been awarded Company of the Year (Agro Chemical Category) by Federation of Indian Chambers of Commerce and Industry (FICCI) in 10th Biennial International Exhibition and Conference –India Chem 2018 and has been bestowed with many awards and recognitions from time to time. 

In 2018-19 the Company was recognized as “Great Place to Work for the year 2018-19”.


Today Dhanuka perhaps has one of the largest R&D team led by a highly acclaimed Agri-scientist and assisted by senior distinguished Scientists/Technocrats, having vast experience of working in the Indian Council of Agricultural Research (ICAR), State Agricultural Universities (SAU), and other research organizations based at strategic locations across the country.

Over 27 young and experienced scientists are undertaking field level research studies across the country in different agro-climatic zones for evaluating the use of new products, their formulations, benefits on different crops, appropriate dosage, application schedule & spray techniques to name a few.

The R&D Department has excellent liaison with SAUs, National Agricultural Research Institutes, Krishi Vigyan Kendras (KVK), Central Insecticides Board & Registration Committee of the Government of India, and other such Institutions. The R&D cell has the necessary infrastructure to address issues of market forecast, assessment of pesticides requirement in an environment of ever changing farming practices and Agri-inputs, product identification, on-farm product evaluation, creating awareness amongst farmers on judicious use of pesticides, providing services for registration & product development on project basis, etc.

In the recent past, R&D Department has worked in partnership with leading research institutions in India, including Indian Council of Agricultural Research (ICAR), different State Agricultural Universities (SAU) and Tea Research Association. The Group has sponsored Fellowships/Awards to students of Agricultural Universities.

The Ministry of Science & Technology, Government of India has recognized the Dhanuka R&D center located at Gurgaon for generation of scientific data and evaluation of new molecules. The Lab has NABL Certification. The Center has also know for providing Soil & Water Testing and Advisory Services, and guidance to farmers on Integrated Crop Management (ICM) technologies including IPM and Dhanuka Kheti Ki Nai Taknik.



Mycore :Mycore is an Arbuscular Mycorrhizal Fungi (AMF) having endo mycorrhizal spores in granular formulation. It enhances surface area of roots and facilitates increased absorption of soil nutrients and water, ultimately helps the crop to be vigorous, to be resistant against physical and biological stress. Eventually increasing the yield and productivity of the crop. Mycore has huge opportunity in multiple crops including cereal crops and vegetables. It is a great addition in our portfolio to increase our presence over the emerging Biological product segments.

Zapac : Zapac is a systemic and contact insecticide formulated by mixing two most trusted molecules. It gives long-lasting and effective protection against broad range of pests. It has a better rain fastness and gives lush green leaves. Zapac benefits more branches and flower initiation.

Pro-rin: The Company has re-launched, Prorin a broad spectrum insecticide. Prorin has stomach and contact action. It is formulated as an emulsifiable concentrate containing profenofos active ingredient 40%, Cypermethrin active ingredient by 4% by mass and balance adjuvant. It is used to control bollworms of cotton and Kills insects on lower and upper surface of leaves due to penetrating action.

Prodhan : The Company has re-launched, Prodhan a broad spectrum insecticide. It is used to control bollworms, jassids, aphid, thrips and white flies in cotton. It has strong contact and stomach action. It has excellent translaminar action, when sprayed on the upper surface of leaf, it immediately percolates down to lower surface of the leaf. It is absorbed readily in plant cells thus not affected by rainfall.

Largo belongs to the Spinosyn class of insect management tools which is naturalists in origin. Largo Contains Spinetoram 11.7% SC as an active ingredient. Largo is derived from the fermentation of Saccharoplyspora Spinosa (a common soil bacterium) and is then chemically modified. Largo provides broad-spectrum insect control like Thrips & Lepidopteran, with excellent residual activity on variety of crops. Spinetoram has a unique mode of action, no other group of insecticide acts on this particular site of nervous system. The active ingredient in Largo does not interact with the known binding sites of other classes of insecticide.

Chempa (Pyrazosulfuron-Ethyl 70% WDG) is a broad spectrum herbicide for paddy, which effectively controls major broadleaf Weeds, Sedges and Grassy Weeds. It is a pre and early post emergence Herbicide which gives longer duration of control by inhibiting shoot growth and killing the weeds. It inhibits the catalysis of Acetolactate Synthase (ALS) in the biosynthesis of Valine, Leucine & Isoleucine and stops cell division of roots and kills weeds. 

Apply (Pymetrozine 50% WG) has the best known chemistry for effective control on BPH. It is a systemic and translaminar insecticide which paralysis the hoppers, stops egg-laying and get the insects killed from starvation. Immediate crop protection through permanent inhibition of the feeding system. It paralyses hind legs of pests which results into its drop from plants which later makes it dead out of starvation. It checks next generation growth by blocking egg-laying of pests.


  • Revenue from Operations increased by 11.36% from Rs 1,005.83 Crores in FY2019 to Rs 1,120.07 Crores in FY2020.
  • Profit before tax increased by 17.34% from Rs 153.95 Crores in FY2019 to Rs 180.64 Crores in FY2020.
  • Operating Profit before tax increased by 17.56% from Rs 133.64 Crores in FY2019 to Rs 157.11 Crores in FY2020
  • Net profit increased by 25.66% from Rs112.58 Crores in FY2019 to Rs 141.47 Crores in FY2020
  • The Company reported an EPS of Rs 29.73 in FY2020 compared to Rs 23.02 in FY2019.

Performance for Q3 FY2021 

  • Revenues from Operations stood at Rs. 295.66 Crores in Q3 FY2021 vs Rs. 271.48 Crores in Q3 FY2020, representing an increase of 09%. 
  • EBITDA stood at Rs. 50.22 Crores in Q3 FY2021 vs Rs. 34.34 Crores in Q3 FY2020, up 46.24%. EBITDA margins improved from 16.98% in Q3 FY2021 to 12.65% in Q3 FY2021 led by strong operating leverage.
  • Profit after tax was at Rs. 40 Crores in Q3 FY2021 vs Rs. 28 Crores in Q3 FY2020, up 16.81%. PAT margins improved from 10.2% in Q3 FY2020 to 13.13% in Q3 FY2021

Company paid Interim Dividend @600% i.e. Rs. 12/- per Equity Share for each Equity Share having a Face Value of Rs. 2/- each for the FY 2019-20. The total outgo on this account was Rs. 68.84 Crores (approx.) inclusive of Corporate Dividend Tax of Rs. 11.74 Crores. 


Board has twice bought back shares of the company from the public.

In 2019 company had announced cash offer to buyback upto 15 lakh eq shares of Rs 2 FV, which constituted 3.36% of total share capital at a price of Rs 550 which amounted to aggregate cash payment of 82.50 crores.

In 2020 The board approved buyback of 10 lakh equity shares at a final buyback price of Rs 1,000 per equity share payable in cash for an aggregate amount not exceeding Rs 100 crore the company said in a regulatory filing.

Management’s comments about future Outlook

  • Management expects industry to register healthy growth given under penetrated market in India in terms of pesticides consumption and expects the company to grow between 10-12% in FY22E which is ahead of the market..
  • New plant would take 2.5-3 years to begin production and contribute anything to the numbers. The project plan for setting up unit should be finalized in next six months. Considering the export opportunity as world is looking for China+1 policy for supply of raw material, company is considering plan to foray into technicals intermidiates.
  • Explore new opportunity to export intermidiates to Japnese, American & European Companies as per mutual agreement. 
  • Exports would be largely in technical intermidiates and would consider formulation export as well if opportunity exist.  New plant would not fall under the purview of 15% tax bracket. 
  • With 5 new product launches in FY20 followed by 4 new products till H1FY21and management indicated 2 9(3) products (in herbicide) and 3-4 9(4) products next year. 
  • Other expenses to surge sharply next year as further operations stabilizes, employee expenses not to rise more than 10% next year. 
  • Net debt-to-equity stood at 0.01x YoY while CFO grew to Rs 130cr vs Rs 20cr as of March 2020. CFO/EBITDA stood at 41% and short term debt at Rs 51 cr. It has sustained an average ROE and ROCE at 22%+/28% respectively in Q3FY21, which is expected to taper down a bit with major capex for setting up of technicals plants going ahead

Indian Agriculture Sector

India’s per hectare consumption of pesticides is one of the lowest across the globe and stands at 0.6 kg/ha as against 5-7 kg/ha in the UK and 13 kg/ha in China. Farming community at large has limited understanding of the benefits of pesticides which results in lower consumption in India. There is an opportunity for the government and private players to increase awareness amongst the farming community about the economic gains that arise out of sustained use of pesticides.


Dhanuka is completely debt free company.

Rural FMCG Play 40 warehouses, 7,000+ distributors and 80,000+ retailers to service the needs of over 10 million touchpoints across farmers

Diverse Product Portfolio 300+ registrations across Herbicides, Insecticides, Fungicides and Plant Growth Regulators, ~90 Products across all segments

Global Innovator Tie Ups World’s leading agrochemical companies from the US, Japan and Europe have partnered with Dhanuka Agritech to introduce latest technology to Indian farmlands

Robust Pipeline Focus on margin accretive 9(3) portfolio. Target to launch 10 new products across all segments over the next two years.

Profitable Growth Higher contribution of margin accretive products, growth in volumes from existing products to drive return ratios

Thus this makes Dhanuka Agritech worth exploring for long term.

Market Outlook -: We advice users to book partial or complete profits according to their investments. With increasing covid-19 cases as well as market making new highs it is advisable to book profits . Investments in pennystocks must be strictly avoided. Buy only fundamentally strong companies which you can hold for 2 years atleast. We expect the market to correct in the coming days probably starting from the next week itself.

Please note that above expressed are our own views. Users are requested to take their own decision regarding investments. No member of DARKHORSESTOCKS would be responsible for any loss.


Essel Propack Established in 1982 is the largest specialty packaging global company, manufacturing laminated plastic tubes catering to the FMCG and Pharma space. Essel Propack Ltd was promoted by Essel Group until 2019 when Blackstone Group bought a majority of 51% stake for about Rs 3,200 crore which further triggered an open offer for Blackstone group to acquire another 26% stake through open market at 139Rs per share. Currently Blackstone Group through its company EPSILON BIDCO PTE.LTD holds more than 50% stake in the company.

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