Dhanuka Agritech Ltd., incorporated in the year 1985, is a Small Cap company (having a market cap of Rs 3354.57 Crore) operating in Pesticides/Agro Chemicals sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 305.04 Crore, down -32.31 % from last quarter Total Income of Rs 450.62 Crore and up 9.21 % from last year same quarter Total Income of Rs 279.33 Crore. Company reported net profit after tax of Rs 40.04 Crore in latest quarter.
Investment Rationale
The brokerage likes DAGRI’s strong cash flow generation and net cash balance sheet, which allows it to invest capital into manufacturing. It believes that DAGRI has chemical manufacturing know -how available at the group level (Dhanuka Laboratories) and executions should not be difficult. Long-term return would be driven by successful capital allocations tow ard manufacturing. It maintains Buy with an unchanged TP of Rs 910.
Promoter/FII Holdings
Promoters held 75.2 per cent stake in the company as of Dec 30, 2020, while FIIs held 6.3 per cent, DIIs 12 per cent and public and others 12.8 per cent.
