CRISIL Equities has upgraded Dhanuka Agritech’s CRISIL IER fundamental grade to 4/5 from 3/5. The grade indicates that the company’s fundamentals are superior relative to other listed equity securities in India. The rating agency has also assigned a valuation grade of 4/5 to the company.
The revision in the fundamental grade is driven by the company’s consistently robust financial performance. While the domestic pesticide industry grew at 18% CAGR over FY07-10, Dhanuka’s revenue grew by 27% CAGR over the same period.
Dhanuka Agritech (DAL) is a part of the Delhi based Dhanuka Group and engaged in the manufacturing and marketing of agrochemicals like insecticides, pesticides, herbicides etc. The company has manufacturing facilities in Gurgaon and Sohna (Haryana), Sanand (Gujarat) and Udhampur (Jammu and Kashmir). In addition to the agrochemical business, the company is also engaged in the seed manufacturing business, though its contribution to the total turnover has remained modest.