Synopsis: Dhanuka Agritech Limited, an agrochemical stock, has announced a ₹70 crore buyback at ₹1,400 per share, a 28.3% premium to the market price, with the offer opening on June 4.
This Small-Cap Stock, engaged in the manufacturing, marketing, and distribution of agrochemical products, including insecticides, herbicides, fungicides, and plant growth regulators across India, jumped 2.56 percent after announcing a buyback of 5 lakh shares at a 28.3 percent premium
With a market capitalization of Rs. 4,918.05 crores, the share of Dhanuka Agritech Limited has reached an intraday high of Rs. 1,123.60 per equity share, rising nearly 2.56 percent from its previous day’s close price of Rs. 1,095.55. Since then, the stock has retreated and is currently trading at Rs. 1,091 per equity share.
Reason Behind the Surge
Dhanuka Agritech Limited has announced a share buyback through the tender offer route. The company plans to repurchase up to 5,00,000 fully paid-up equity shares with a face value of Rs. 2 each at a buyback price of Rs. 1,400 per share, representing a premium of approximately 28.3 percent over its current market price of Rs. 1,091 per share. The total buyback size is Rs. 70 crore, representing about 4.20 percent of the company’s paid-up equity capital and free reserves as of March 31, 2026.
The record date for determining eligible shareholders was May 29, 2026. Shareholders holding the company’s shares on this date are eligible to participate in the buyback offer. Through this process, eligible investors can tender their shares to the company at the specified buyback price, subject to acceptance on a proportionate basis.
The buyback offer will open on June 4, 2026, and close on June 10, 2026. Shareholders must submit their tender forms and required documents by June 10, 2026. The company is expected to complete payments to accepted shareholders and return any unaccepted shares by June 17, 2026.
Business Highlights
Dhanuka Agritech Limited serves over 10 million farmers through an extensive network of 41 warehouses, more than 6,500 distributors, and over 80,000 retailers across the country. Dhanuka also offers a wide range of crop protection products, with more than 300 registrations covering herbicides, insecticides, fungicides, and plant growth regulators, along with over 90 products catering to various agricultural needs.
Segment- Wise Revenue Mix (Q4 FY26)
In Q4 FY2025-26, Dhanuka Agritech reported revenue of Rs. 483 crore. Insecticides contributed the largest share at 41 percent (approximately Rs. 198 crore), followed by Herbicides at 31 percent (around Rs. 150 crore). Fungicides accounted for 14 percent (about Rs. 68 crore), while the remaining 14 percent (approximately Rs. 68 crore) came from other products, reflecting a well-diversified revenue mix.
Company Overview
Dhanuka Agritech Limited is one of India’s leading agrochemical companies, engaged in the manufacturing, marketing, and distribution of crop protection products. The company offers a wide range of solutions, including insecticides, herbicides, fungicides, and plant growth regulators, catering to the needs of farmers across the country.
Recent Quarter Results
Coming into financial highlights, Dhanuka Agritech Limited’s revenue has increased from Rs. 442 crore in Q4 FY25 to Rs. 483 crore in Q4 FY26, which has grown by 9.28 percent. The net profit has also grown by 28.95 percent from Rs. 76 crore in Q4 FY25 to Rs. 98 crore in Q4 FY26. Dhanuka Agritech Limited’s revenue and net profit have grown at a CAGR of 8 percent and 7 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 24 percent and 18.6 percent, respectively. Dhanuka Agritech Limited has an earnings per share (EPS) of Rs. 63.7, and its debt-to-equity ratio is 0.02x.
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