Dhanuka Agritech Ltd, incorporated in the year 1985, is a Small Cap company with a market cap of Rs 4071.41 Crore, operating in Pesticides/Agro Chemicals sector.
Dhanuka Agritech’s key Products/Revenue Segments include Agrochemicals, Other Operating Revenue, Scrap and Power Generation for the year ending 31-Mar-2020.
Investment Rationale
Research said, Dhanuka Agritech beat its Revenue/EBITDA/PAT estimates by 6 per cent/21 per cent/11 per cent. The company was able to maintain gross margins (+3bps YoY) despite raw material cost pressures.
Emkay raises FY22/23 EBITDA estimates by 9 per cent/10 per cent and PAT estimates by 7 per cent as it increases its margin and revenue growth assumptions. Emkay rolls forward to June-23E EPS and maintains buy with a revised target price of Rs 990 (Rs 910 earlier), based on an unchanged PE multiple of 19x.
Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 284.30 Crore, down 6.80 per cent from last quarter Total Income of Rs 305.04 Crore and up 20.34 per cent from last year same quarter Total Income of Rs 236.25 Crore. Company has reported net profit after tax of Rs 48.64 Crore in latest quarter.
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