Buy Dhanuka Agritech; target of Rs 1035: Dolat Capital Market

Dolat Capital Market's research report on Dhanuka Agritech

Dhanuka Agritech reported a decent set of 2QFY21 numbers in spite of a challenging environment amidst excessive rainfalls in Aug-20, Sept-20, low pest infestation and a reasonably filled channel inventory. Sales grew by 10.0% YoY to Rs 4.42bn, which was led by an equivalent volume and pricing growth. EBITDA grew by 21.3% YoY to Rs 890mn owing to easing input costs. PAT grew by 16.8% YoY to Rs 701mn owing to a higher other income (up 71% YoY) and low depreciation (down 44% YoY).

Outlook

We revise target price to Rs 1,035/share @22x FY23E EPS. We have a buy rating on the stock.

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