Stocks to Buy: Brokerage firm Anand Rathi has placed bets on two major companies of the agrochemical sector – Sharda Cropchem and Dhanuka Agritech. Their shares are expected to rise by up to 54%. Both the companies have released the results for the second quarter of the financial year 2025-26 i.e. September.
Sharda showed strong growth and stable performance. At the same time, Dhanuka had to face weather and operational challenges. However, brokerage firm Anand Rathi has given Buy rating on both the stocks.
Sharda Cropchem recorded 35% year-on-year growth in the second quarter of FY 2025-26. Volume growth and market share gains in key regions, as well as strong demand in NAFTA and Europe, supported the company’s revenues. The growth got further strengthened due to emptying of stocks and better demand.
Management says that prices are now at the bottom and there is a possibility of price increase in the near future. Entry and expansion into new markets is expected to further increase volumes. Reduction in US-China trade war concerns has led to stability in organic growth.
Anand Rathi has given Buy recommendation on Sharda Cropchem and has kept the target price at Rs 1,250. The stock closed at Rs 811.05 on Tuesday, down 0.70%. This means that Sharda Cropchem shares may rise by up to 54% from the current level.
Dhanuka Agritech’s revenue declined 9% in the September quarter. At the same time, EBITDA has fallen by 14% and profit after tax (PAT) has fallen by 20%. The main reason for this was low offtake due to abnormal rains in the Kharif season. High operational costs limited EBITDA margin to 22.9% despite improved product mix.
Decline in herbicide sales and loss of Rs 4.6 crore from the Dahej plant made the situation more challenging. Management has cut FY26 revenue growth guidance from high double digits to flat.
Anand Rathi maintains Buy rating for Dhanuka Agritech. But, the target price has been reduced to Rs 1,530. Earlier it was Rs 1,900. Shares of Dhanuka Agritech closed at Rs 1,311.90 on Tuesday. Accordingly, the shares of Dhanuka Agritech are expected to rise by 16.6%.
Disclaimer: The advice or opinions expressed on Moneycontrol.com are the personal views of the expert/brokerage firm. The website or management is not responsible for this. Moneycontrol advises users to always seek the advice of a certified expert before taking any investment decision.