3 agrochemical stocks including Dhanuka Agritech can rally up to 23%

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Also Read: Insider alert: Top 5 companies in which promoters are increasing their stake In contrast, India's agrochemicals market is expected to witness a higher CAGR of 6.0–6.5% by 2027–28, touching US$ 9.8 billion. According to the brokerage, the country's emergence as the second-largest exporter of agrochemicals globally is notable, driven by a surge in exports to key markets such as the USA and Brazil. It highlights that the regulatory reforms, technological advancements, and sustainability initiatives will be poised to further propel growth in the Indian agrochemicals landscape.

As per the brokerage analysis, the Off-patent molecules represent a significant opportunity in meeting the escalating demand for agrochemicals, constituting 75% of the global market. Despite this vast potential, challenges hinder generic manufacturers' utilisation of these molecules, limiting their adoption. Fungicides and insecticides are preferred within the realm of off-patent molecules, offering benefits such as lower costs and improved safety.

Also Read: 5 beaten down specialty chemical stocks poised to make a comeback soon Regulatory hurdles pose obstacles to generic manufacturers, emphasising the need for innovative approaches to molecule development, the brokerage added. India stands poised to capitalise on its status as a major exporter of agrochemicals by venturing into new markets and fostering innovation. Joint ventures with international counterparts facilitate technology transfer and bolster distribution networks, enhancing India's competitiveness on the global stage.