Emkay Global maintains buy on Dhanuka Agritech, raises target price to Rs 480

Emkay Global has maintained buy rating on Dhanuka Agritech in the long term and raised target price to Rs 480 from Rs 450. Shares of Dhanuka Agritech ended up 2.33% at Rs 412.65 on Monday while BSE sensex closed 17.14 points down at 41,558.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 402.03 crore, up 83.60% from last quarter sales of Rs 218.98 crore and up 4.87% from last year same quarter sales of Rs 383.36 crore. The Company has reported net profit after tax of Rs 60.00 crore in the latest quarter.


The company’s top management includes Mr.Arun Kumar Dhanuka, Mr.Ashish Saraf, Mr.Bajrang Lal Bajaj, Mr.Harsh Dhanuka, Mr.Indresh Narain, Mr.Mahendra Kumar Dhanuka, Mr.Mridul Dhanuka, Mr.Priya Brat, Mr.Rahul Dhanuka, Mr.Ram Gopal Agarwal, Mr.Sachin Kumar Bhartiya, Mr.Sanjay Saxena, Mr.Vinod Kumar Jain, Mrs.Namrata Gupta. Company has S S Kothari Mehta & Co as its auditors. As on 30-09-2019, the company has a total of 47,578,324 shares outstanding.

Investment Rationale

Dhanuka Agritech's focus on improving product mix by means of new launches should be visible from second half of FY20, said Emkay Global. The brokerage has increased FY20/21 revenue by 4%/2% and profit by 5%/2% factoring in a robust rabi season and improvement in Ebitda margins.