Recent Price Movement and Market Context
On the day the new low was hit, Dhanuka Agritech’s stock price dropped by 2.91%, underperforming its sector by 2.12%. The intraday low of Rs.1014.5 represents a 3.9% decline from the previous close. This downward momentum has pushed the stock below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish sentiment among market participants.
The broader market environment also weighed on the stock’s performance. The Sensex, after opening flat with a minor decline of 28.13 points, fell by 442.49 points to close at 81,777.99, a 0.57% drop. While some indices such as the S&P Bse Oil Gas and NIFTY PSU reached new 52-week highs, the overall market tone was cautious, with the Sensex trading below its 50-day moving average despite the 50DMA remaining above the 200DMA.
Performance Over the Past Year
Over the last 12 months, Dhanuka Agritech’s stock has delivered a negative return of 20.24%, contrasting sharply with the Sensex’s positive 9.59% gain over the same period. The stock’s 52-week high was Rs.1960, indicating a near 48% decline from that peak to the current low. This underperformance extends beyond the last year, with the stock lagging the BSE500 index over the past three years, one year, and three months.
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Financial Metrics and Operational Highlights
Dhanuka Agritech’s financial profile presents a mixed picture. The company reported net sales of Rs.442.02 crores in the quarter ending March 2025, reflecting a robust growth rate of 20.01%. Operating profit margin reached a quarterly high of 24.83%, while profit before tax excluding other income stood at Rs.90.50 crores, growing by 36.67%. These figures indicate pockets of strength in the company’s recent quarterly performance.
Return on equity (ROE) remains a notable positive, with a high figure of 22.08%, underscoring efficient management and capital utilisation. The company maintains a low debt-to-equity ratio averaging zero, signalling a conservative capital structure with minimal leverage. Valuation metrics show a price-to-book value of 3.4, which is considered attractive relative to peers’ historical averages, suggesting the stock is trading at a discount within its sector.
Long-Term Growth and Profitability Trends
Despite recent quarterly gains, the company’s long-term growth trajectory has been modest. Over the past five years, net sales have grown at an annualised rate of 8.11%, while operating profit has increased by 6.47% annually. Profitability has seen some erosion, with profits declining by 5.5% over the last year. This subdued growth and profit contraction contribute to the stock’s underperformance relative to broader market indices and sector peers.
The stock’s Mojo Score currently stands at 58.0, with a Mojo Grade of Hold, upgraded from a previous Sell rating on 16 Feb 2026. The market capitalisation grade is 3, reflecting a mid-tier valuation within its industry segment. These ratings encapsulate the company’s balanced profile of operational efficiency and valuation appeal against its recent price weakness and growth concerns.
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Sectoral and Market Positioning
Dhanuka Agritech operates within the Pesticides & Agrochemicals sector, a segment that has experienced mixed performance amid fluctuating commodity prices and regulatory developments. While some indices in related sectors have reached new highs, Dhanuka’s stock has not mirrored this trend, reflecting company-specific factors and competitive pressures.
The stock’s sustained trading below all major moving averages indicates a cautious market stance, with investors awaiting clearer signals before committing. The gap between the current price and the 52-week high of Rs.1960 highlights the extent of the recent correction and the challenges faced in regaining investor confidence.
Summary of Key Data Points
• New 52-week low: Rs.1014.5 (27 Feb 2026)
• Four consecutive days of decline, total loss of 7.17%
• Day’s intraday low: Rs.1014.5 (-3.9%)
• Underperformance vs sector: -2.12% on the day
• 1-year stock return: -20.24% vs Sensex +9.59%
• Quarterly net sales growth: 20.01%
• Quarterly operating profit margin: 24.83%
• Quarterly PBT less other income growth: 36.67%
• ROE: 22.08%
• Debt to equity ratio: 0 (average)
• Price to book value: 3.4
• Mojo Score: 58.0 (Hold, upgraded from Sell on 16 Feb 2026)
The stock’s recent decline to a 52-week low underscores the challenges faced by Dhanuka Agritech Ltd in maintaining momentum amid a competitive and evolving sector landscape. While certain financial metrics remain encouraging, the overall price action reflects a cautious market environment and the need for sustained performance to reverse the current downtrend.
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