Synopsis
Dhanuka Agritech Ltd., incorporated in the year 1985, is a Small Cap company (having a market cap of Rs 3330.58 Crore) operating in Pesticides/Agro Chemicals sector.
Axis Securities has buy call on Dhanuka Agritech with a target price of Rs 800. The current market price of
is Rs 714.5. Time period given by analyst is one year when
. price can reach defined target.
Dhanuka
., incorporated in the year 1985, is a Small Cap company (having a market cap of Rs 3330.58 Crore) operating in Pesticides/Agro Chemicals sector.
Dhanuka Agritech Ltd. key Products/Revenue Segments include Agrochemicals, Other Operating Revenue, Scrap and Power Generation for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 330.49 Crore, down -9.10 % from last quarter Total Income of Rs 363.58 Crore and up 16.25 % from last year same quarter Total Income of Rs 284.30 Crore. Company reported net profit after tax of Rs 54.40 Crore in latest quarter.
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Investment Rationale
Dhanuka Agritech Ltd (Dhanuka) reported consolidated revenue of Rs. 318 Cr compared to Rs. 276 Cr YoY up 15%. This quarter witnessed modest de-growth due to three cyclones in southern India (which contribute>1/3rd of the industry’s agrochemicals sales) which muted the consumption of agrochemicals. EBITDA Margin came in at 20% and was 475 bps above estimates and 232bps lower YoY, led by gross margin expansion, reduced employee expenses and controlled other expenses. EBITDA stood at Rs 65 Cr, beating estimates by ~10%. Effective PAT came in at Rs 55 Cr beating our estimates by 21% and higher ~14% YoY. The brokerage expects the company to continue a healthy growth trajectory going forward on the back of new product launches and a better Kharif season in FY23 on account of moderate expected rainfall and high commodity prices. It revises outlook from Hold to BUY with a revised TP of Rs. 800 per share valuing the stock at 14x FY24E EPS.
Promoter/FII Holdings
Promoters held 70.0 per cent stake in the company as of 31-Mar-2022, while FIIs owned 3.67 per cent, DIIs 17.5 per cent.
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