Dharmaj Crop Guard Limited is an India-based agrochemicals company incorporated in 2015, engaged in manufacturing and marketing agrochemical formulations such as insecticides, fungicides, herbicides, plant growth regulators, and micro-fertilizers. The company was incorporated as a Public Limited Company on January 19, 2015, under the Companies Act, 2013, issued by the Registrar of Companies, Gujarat, at Ahmedabad.
The company operates through three distinct business segments that form the core of its operations: Branded Formulations (B2C), Institutional Formulations (B2B), and Active Ingredients (B2B). It manufactures pesticides, weedicides, fungicides, and herbicides, boasting an active portfolio of 190+ products, catering to a wide customer base including bulk consumers, retailers, and export customers.
Dharmaj Crop Guard Ltd. markets and distributes licensed and generic formulations to business-to-consumer (B2C) customers (farmers) under its brands and to business-to-business (B2B) customers (institutional). It is also engaged in the business of general insect and pest control chemicals for public and animal health protection, manufacturing a range of insecticides to suit the requirements of farmers in preventing and curing different crops from being damaged by insects.
The company has a market capitalization of ₹1,167 crore (as of recent data), reflecting its position as a significant player in the agrochemical sector. Dharmaj reported 45% FY25 revenue growth to Rs. 951 crore; FY26 growth guidance is 20-25%, with expected margin improvement. The company achieved revenue of ₹951 crore and profit of ₹34.8 crore in FY25.
The company's quarterly performance shows strong growth momentum:
- Q1 FY25: Revenue of ₹255.3 crore, reflecting a YoY growth of 62%.
- Q2 FY25: Reported a 21% YoY increase in revenue at ₹311.3 crore, 4% increase in EBITDA at ₹34.5 crore, and 18% increase in its net profit at ₹21 crore.
- Q3 FY25: Announced revenue of ₹174.5 crore, a growth of 41% YoY, whereas profit was ₹1.2 crore, down by 85%.
- Q4 FY25: Reported revenue of ₹209.93 crore, an 80.86% increase year-on-year. However, the company faced a net loss of ₹2.45 crore, a 27.55% improvement from the previous year.
Key financial ratios demonstrate the company's market positioning. The stock P/E ratio stands at 33.5 with a book value of ₹117. The stock is trading at 2.94 times its book value, indicating investor confidence in the company's growth prospects.
As of November 30, 2021, the aggregate installed capacity of the company's manufacturing facility for agrochemical formulations was 25,500 MT. In Fiscal 2021, 7,577.21 MT of agrochemical formulations were manufactured. To expand and achieve backward integration, the company also acquired 33,489.73 sq. mtrs of land at Saykha Industrial Estate, Bharuch, in Gujarat.
The company is certified to ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 standards and conducts farmer training programs to educate farmers on the benefits of their products. This certification demonstrates the company's commitment to quality, environmental management, and occupational health and safety standards.
The company's Active Ingredients segment has emerged as a significant growth driver. This vertical achieved a revenue of ₹154.8 crore in 9M FY25, in line with capacity utilization targets for the first year.
Looking ahead, Dharmaj remains committed to:
- Building a pan-India brand presence.
- Scaling up the active ingredients business.
- Growing exports for both formulations and active ingredients.
These strategic initiatives are expected to drive sustained growth and market expansion in the coming year. The company's expansion strategy includes both domestic and international markets, exporting its products to Latin America, East African Countries, the Middle East, and Far East Asia, demonstrating its global reach and diversification strategy.
The company is presently engaged in the business of manufacturing and dealing in pesticides, including concessionaires of public health products for pest control, insecticides, herbicides, fertilizers, and allied products. It is engaged in marketing and distribution of agrochemical products through generic brands to Indian farmers via their distribution network, providing crop protection solutions to farmers to assist them in maximizing productivity and profitability.
The peers of Dharmaj Crop Guard Ltd include P I Industries Ltd, UPL Ltd, Sumitomo Chemical India Ltd, Dhanuka Agritech Ltd, Sharda Cropchem Ltd, Bharat Rasayan Ltd, and Bhagiradha Chemicals & Industries Ltd, positioning the company among established players in the agrochemical sector.
The company maintains a promoter holding of 70.4%, indicating strong management control and alignment with shareholder interests. The company is led by Rameshbhai Ravajibhai Talavia as Chairman, who has been instrumental in driving the company's growth strategy.
The company successfully completed a public issue in November 2022 by raising ₹251 crore through a combination of Fresh Issue and Offer for Sale, demonstrating successful capital market access for funding expansion plans.
Despite consistent profitability, the company is not paying out dividends, likely reinvesting profits into business expansion and growth initiatives. The company's focus on sustainable growth and market expansion positions it well for future performance in the dynamic agrochemical sector.
