Buy Dhanuka Agritech, target price Rs 520: Angel Broking
The brokerage is positive on the long term prospects of the company owing to high industry growth rate, management capability and wide & diversified product portfolio as well as reach.
Angel Broking has given a buy rating to Dhanuka Agritech with a target price of Rs 520.
Dhanuka Agritech is a 100 per cent domestic market focused agrochemical company. The share price of the company moved up by 1.36 per cent from its previous close of Rs 446.45. The last traded stock price is Rs 452.50. Incorporated in 1985, Dhanuka Agritech has a market cap of Rs 2110.34 crore.
Investment Rationale
The company has international collaboration with the world’s nine leading agro chemical companies to introduce the latest technology in Indian farmlands.
It has a pan India presence with 7,000 distributors & 80,000 dealers. The brokerage is positive on the long term prospects of the company owing to high industry growth rate, management capability and wide & diversified product portfolio as well as reach.
Financials
For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 271.48 crore, down -32.47 per cent from last quarter Sales of Rs 402.03 crore and up 25.23 per cent from last year's same quarter Sales of Rs 216.79 crore. The company reported net profit after tax of Rs 27.67 crore in the latest quarter.
Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of December 31, 2019, while DIIs held 12.07 per cent and public and others 12.93 per cent.
Dhanuka Agritech is a 100 per cent domestic market focused agrochemical company. The share price of the company moved up by 1.36 per cent from its previous close of Rs 446.45. The last traded stock price is Rs 452.50. Incorporated in 1985, Dhanuka Agritech has a market cap of Rs 2110.34 crore.
Investment Rationale
The company has international collaboration with the world’s nine leading agro chemical companies to introduce the latest technology in Indian farmlands.
It has a pan India presence with 7,000 distributors & 80,000 dealers. The brokerage is positive on the long term prospects of the company owing to high industry growth rate, management capability and wide & diversified product portfolio as well as reach.
Financials
For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 271.48 crore, down -32.47 per cent from last quarter Sales of Rs 402.03 crore and up 25.23 per cent from last year's same quarter Sales of Rs 216.79 crore. The company reported net profit after tax of Rs 27.67 crore in the latest quarter.
Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of December 31, 2019, while DIIs held 12.07 per cent and public and others 12.93 per cent.