Dhanuka Agritech Ltd Stock Falls to 52-Week Low of Rs.1055.3

Stock Price Movement and Market Context

On 19 Jan 2026, Dhanuka Agritech Ltd’s stock price touched Rs.1055.3, the lowest level in the past year. This decline comes amid a broader market downturn, with the Sensex falling by 532.80 points (-0.73%) to close at 82,961.69. The benchmark index is currently 3.85% below its 52-week high of 86,159.02 and has experienced a three-week consecutive decline, losing 3.27% over this period.

Dhanuka Agritech’s shares have underperformed the Pesticides & Agrochemicals sector by 0.41% on the day and have recorded a negative return of 2.23% over the last two trading sessions. The stock is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

Performance Relative to Benchmarks

Over the past year, Dhanuka Agritech Ltd has delivered a total return of -25.47%, significantly lagging behind the Sensex’s positive 8.28% return. The stock’s 52-week high was Rs.1960, indicating a substantial decline of approximately 46% from its peak. This underperformance extends beyond the one-year horizon, with the company also trailing the BSE500 index over the last three years, one year, and three months.

Financial Metrics and Operational Highlights

Despite the share price decline, Dhanuka Agritech maintains a strong operational profile. The company reported net sales of Rs.442.02 crores in the quarter ended March 2025, reflecting a 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 36.67% year-on-year.

The company’s return on equity (ROE) remains robust at 22.08%, indicating efficient capital utilisation. Additionally, the average debt-to-equity ratio is effectively zero, underscoring a conservative capital structure with minimal leverage.

Valuation and Institutional Holding

Dhanuka Agritech’s valuation metrics present a mixed picture. The stock trades at a price-to-book value of 3.4, which is considered attractive relative to its peers’ historical averages. The company’s PEG ratio stands at 3.6, reflecting moderate growth expectations relative to its price earnings ratio.

Institutional investors hold a significant stake of 20.29%, indicating confidence from entities with extensive analytical resources. This level of institutional ownership often suggests a degree of stability in shareholder base despite recent price declines.

Long-Term Growth Trends

Examining the company’s longer-term growth, net sales have expanded at an annualised rate of 8.89% over the past five years, while operating profit has grown at 9.29% annually. These figures indicate steady but modest growth, which contrasts with the sharper decline in share price over the same period.

The disparity between operational growth and stock performance highlights challenges in market sentiment and valuation adjustments within the sector and broader market environment.

Sector and Market Dynamics

The Pesticides & Agrochemicals sector has faced headwinds amid fluctuating commodity prices and regulatory developments. Dhanuka Agritech’s recent share price movement reflects these sectoral pressures combined with broader market volatility. The Sensex’s current position below its 50-day moving average, despite the 50DMA remaining above the 200DMA, suggests a cautious market outlook.

Summary of Key Metrics

Dhanuka Agritech Ltd’s current Mojo Score is 53.0, with a Mojo Grade of Hold, upgraded from Sell on 7 Jan 2026. The company holds a Market Cap Grade of 3, reflecting its mid-tier market capitalisation status within the sector.

Despite recent price declines, the company’s financial fundamentals such as high ROE, low debt, and positive quarterly sales and profit growth provide a nuanced view of its performance. However, the stock’s sustained trading below all major moving averages and its significant underperformance relative to the Sensex and sector peers remain notable factors in its current valuation.

Conclusion

Dhanuka Agritech Ltd’s fall to a 52-week low of Rs.1055.3 on 19 Jan 2026 underscores the challenges faced by the stock amid a broader market downturn and sector-specific pressures. While the company’s financial metrics indicate operational strength and efficient management, the share price reflects cautious market sentiment and valuation adjustments. The stock’s performance relative to benchmarks and moving averages suggests continued scrutiny by market participants.

Unlock special upgrade rates for a limited period. Start Saving Now →