Check Before You Invest : Dhanuka Agritech Ltd

Q: Which industry/sub-sector does Dhanuka Agritech Ltd belong to?

Dhanuka Agritech Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Pesticides & Agrochemicals segment.

Q: Is Dhanuka Agritech Ltd a good quality company?

Dhanuka Agritech Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Dhanuka Agritech Ltd undervalued or overvalued?

Dhanuka Agritech Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 18.72, Historic Median: 18.41. Price to Book, Current: 3.13, Historic Median: 3.81. Price to Sales, Current: 2.51, Historic Median: 2.60. EV to EBITDA, Current: 11.75, Historic Median: 12.53

Q: Is Dhanuka Agritech Ltd a good buy now?

Dhanuka Agritech Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Dhanuka Agritech Ltd?

Dhanuka Agritech Ltd revenue growth is 15.7% for FY-2025, which is above its 5-year CAGR of 12.69%, indicating faster growth.

Q: Gross Profit margin of Dhanuka Agritech Ltd?

Dhanuka Agritech Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.3% for FY-2025, which is above its 5-year median of 18.9%, indicating increasing margins.

Q: Operating Profit Margin of Dhanuka Agritech Ltd?

Dhanuka Agritech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 20.52% for FY-2025, which is above its 5-year median of 18.65% indicating increasing margins.

Q: Net Profit Margin of Dhanuka Agritech Ltd?

Dhanuka Agritech Ltd Net Profit Margin is 14.59% for FY-2025, is in line with its 5-year median of 14.13%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 20.3, Historic Median: 18.9. Operating Profit Margin (%), Current: 20.52, Historic Median: 18.65. Net Profit Margin (%), Current: 14.59, Historic Median: 14.13

Q: Return on Asset of Dhanuka Agritech Ltd?

Dhanuka Agritech Ltd Return on Asset is 17.58%, which is in line with its 5-year historical median of 17.19%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Dhanuka Agritech Ltd?

Dhanuka Agritech Ltd Return on capital employed is 29.41% for FY-2025, which is in line with its 5-year historical median of 30.2%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : Dhanuka Agritech Ltd

Snapshot

Q.1 Which industry/sub-sector does Dhanuka Agritech Ltd belong to?

Dhanuka Agritech Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Pesticides & Agrochemicals segment.

Q.2 Is Dhanuka Agritech Ltd a good quality company?

Dhanuka Agritech Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Dhanuka Agritech Ltd undervalued or overvalued?

Dhanuka Agritech Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	18.72	18.41
Price to Book	3.13	3.81
Price to Sales	2.51	2.60
EV to EBITDA	11.75	12.53

Q.4 Is Dhanuka Agritech Ltd a good buy now?

Dhanuka Agritech Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Dhanuka Agritech Ltd?

Dhanuka Agritech Ltd revenue growth is 15.7% for FY-2025, which is above its 5-year CAGR of 12.69%, indicating faster growth.

Q.2 Gross Profit margin of Dhanuka Agritech Ltd?

Dhanuka Agritech Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.3% for FY-2025, which is above its 5-year median of 18.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Dhanuka Agritech Ltd?

Dhanuka Agritech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 20.52% for FY-2025, which is above its 5-year median of 18.65% indicating increasing margins.

Q.4 Net Profit Margin of Dhanuka Agritech Ltd?

Dhanuka Agritech Ltd Net Profit Margin is 14.59% for FY-2025, is in line with its 5-year median of 14.13%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	20.3	18.9
Operating Profit Margin (%)	20.52	18.65
Net Profit Margin (%)	14.59	14.13

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Dhanuka Agritech Ltd?

Dhanuka Agritech Ltd Return on Asset is 17.58%, which is in line with its 5-year historical median of 17.19%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Dhanuka Agritech Ltd?

Dhanuka Agritech Ltd Return on capital employed is 29.41% for FY-2025, which is in line with its 5-year historical median of 30.2%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Dhanuka Agritech Ltd?

Dhanuka Agritech Ltd Return on equity is 22.34% for FY-2025, which is in line with its 5-year historical median of 23.1%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Dhanuka Agritech Ltd?

Dhanuka Agritech Ltd Cash conversion cycle is 101 days, above its 5-year historical median of 93 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.3	1.3
ROE (%)	22.34	23.1
ROCE (%)	29.41	30.2
Cash Conversion Cycle	101 days	93 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Dhanuka Agritech Ltd?

Dhanuka Agritech Ltd Debt-to-Equity ratio is 0.03, which is lower the industry average of 0.27, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Dhanuka Agritech Ltd?

Dhanuka Agritech Ltd Debt to cash flow from operations is 0.16, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Dhanuka Agritech Ltd?

Q.1 Promoter shareholding and pledge status of Dhanuka Agritech Ltd?

Promoters hold 69.71% of the Dhanuka Agritech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Dhanuka Agritech Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Dhanuka Agritech Ltd vs industry peers?

Dhanuka Agritech Ltd revenue CAGR is 12.69%, compared to the industry median CAGR of 8.45%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	15.7	8.5
Gross Profit Growth (%)	24.8	13.9
Operating Profit Growth (%)	27.5	14
Net Profit Growth (%)	24.3	14.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.3	1.19
ROE (%)	22.34	13.63
ROCE (%)	29.41	16.98
Cash Conversion Cycle (days)	101.41	93

Valuation & price assessment

Q.1 Stock return of Dhanuka Agritech Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 6.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	6.5%	5.4%	19.4%	-12.4%

Q.2 Valuation ratios of Dhanuka Agritech Ltd vs historical?

The current P/E ratio of 18.72 is in line with than its historical median of 18.41, indicating that the stock is trading near its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	18.72	18.41	24.78
Price to Book	3.13	3.81	2.67
Price to Sales	2.51	2.60	1.43
EV to EBITDA	11.75	12.53	12.86

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Check Before You Invest : Dhanuka Agritech Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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