This smallcap agri stock zoomed 16% in 2 days on Q4 nos; analysts say 'Buy'

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Dhanuka Agritech share price: Dhanuka Agritech share price extended its rally on Monday, May 19, 2025, in a weak market, by surging up to 4.74 per cent to hit an intraday high of ₹1,689 per share.

 

Notably, the Dhanuka Agritech share price has climbed 16.34 per cent in the last two (2) trading sessions (including today’s gains) on the back of strong  March quarter (Q4FY25) results. 

However, at 1:02 PM, Dhanuka Agritech shares were off day’s high, and were trading 0.75 per cent higher at ₹1,624.70. By comparison, BSE Sensex was trading 0.06 per cent lower at 82,281.66 level.  Catch Stock Market Latest Updates Today LIVE

 

What fuelled the rally in Dhanuka Agritech share price?

Dhanuka Agritech shares rose after the company posted a strong set of results in the March quarter of financial year 2025 (Q4FY25).

 

Dhanuka Agritech’s profit after tax (PAT) jumped 27.9 per cent year-on-year (Y-o-Y) to ₹75.50 crore in Q4FY25, as against ₹59.02 crore in the same quarter last year (Q4FY24).

 

The revenue, also known as topline, grew 20 per cent Y-o-Y to ₹442.02 crore in Q4FY25, from ₹368.31 crore a year ago.

 

At the operating level, earnings before interest, tax, depreciation and amortisation (Ebitda) zoomed 37 per cent Y-o-Y to ₹109.75 crore, from ₹80.09 crore in the same quarter previous fiscal year.

 

Subsequently, Ebitda margin expanded over 300 basis points (bps) to 24.83 per cent in Q4FY25, from 21.75 per cent a year ago.  ALSO READ | Here's what drove Reliance Power shares up by 4% on Monday, May 19

 

Dhanuka Agritech FY26 guidance

The company said, in its investors presentation, that it is expecting higher double digit growth in its revenue for FY26, while Ebitda guidance remains in-line with 2024-25. 

What are brokerages saying about Dhanuka Agritech post Q4?

Brokerage firms have shared a positive outlook on Dhanuka Agritech following its Q4FY25 results, which majorly outperformed profitability expectations. 

 

According to analysts at Nuvama, the strong performance in the quarter was driven by operating leverage and effective cost control measures. They stressed that the company's robust fundamentals—such as strategic collaborations, the scaling up of its AI (Active Ingredient) plant, and a strong in-licencing pipeline—position it well for sustained growth in the coming years.

 

Thus, Nuvama has reiterated its confidence in the company by maintaining a ‘Buy’ rating. Although the target price was slightly revised down to ₹2,137 from ₹2,215, they continue to value the company at 24x FY27 estimated price-to-earnings (PE).

 

Experts at Anand Rathi also praised the company’s performance, noting that Dhanuka Agritech exceeded both consensus and their own forecasts. The quarter saw a 20 per centY-o-Y revenue increase, driven by a recovery in demand.   ALSO READ | Vodafone Idea shares sink 10% after SC 'dismisses' plea in AGR case

 

While gross margins saw a slight dip of 40 basis points to 43.2 per cent, lower operating expenses contributed majorly to profitability. Cost efficiencies were supported by incremental reimbursements of ₹5 crore in marketing expenses from Japanese partners and ₹12 crore in royalty income from Bayer AG for two new products. This helped expand the Ebitda margin 310 bps Y-o-Y to 24.8 per cent—the highest margin reported by the company to date.

 

Furthermore, the company’s innovation turnover index improved to 14.9 per cent in FY25 from 13.3 per cent in the previous year. Looking ahead, Dhanuka Agritech plans to launch eight new 9(3) molecules over the next two years and has acquired international rights for two fungicides, Iprovalicarb and Triadimenol, from Bayer AG, as part of its global expansion strategy, including manufacturing in India.

 

Therefore, Anand Rathi, too, has maintained a ‘Buy’ rating on the stock and revised its target price upwards to ₹1,900 from the earlier ₹1,850, valuing the company at 22x FY27 estimated EPS.