Buyback, dividend, Q4 results: Brokerage raises share price target of this Agri-Tech stock – hints at 37% upside

Dhanuka Agritech Ltd shares climbed in Thursday’s trade, rising 1.05% to Rs 1163.60 on the BSE. The counter had settled 8.82% higher at Rs 1,182.95 per share on Tuesday, May 19, when its Q4FY26 results were announced. 

Buyback, dividend, and expansion

Alongside its financial results, the company board greenlit a proposal to buy back up to 5,00,000 fully paid-up equity shares at Rs 1,400 per share. The total offer size aggregates to Rs 70 crore, representing 1.11% of the total paid-up equity capital, the company noted.

Dhanuka Agritech shareholders would also receive a recommended final dividend of 100%, translating to Rs 2 per equity share for the financial year 2025-26. 

To scale its overseas business, the board approved setting up wholly-owned subsidiaries or acquiring shares in Brazil and a European country.  The initial investment limit is capped at Rs 1 crore for each entity, it noted.

Dhanuka Agritech share price target

Domestic brokerage firm Axis Direct has maintained a bullish view on the agrochemical major. Axis Direct retained its ‘Buy’ rating on the stock while upgrading the target price to Rs 1,650 per share from the earlier Rs 1,600, hinting at an upside of over 37% from current levels.

The brokerage cited the company's strong fourth-quarter performance amidst a tough agrochemical environment, supported by healthy traction in speciality formulations and insecticides. The brokerage noted that the announced buyback indicating confidence in balance sheet strength, cash generation capability and long-term business outlook. 

“The company recognised ~Rs 27 crore from Indian sales of these products in FY26, but projects a steep jump to roughly Rs 200 crore in FY27,” the brokerage noted.

“EBITDA rose 14% YoY to Rs 125 Cr, with margin expansion to 25.8%, supported by operating leverage and controlled costs, while PAT increased 29.5% YoY to Rs 98 Cr, aided by stronger profitability, lower finance costs, and higher other income,” it said.