Dhanuka Agritech Ltd. share price target

Dhanuka Agritech (DAGRI) for Q2FY21 reported a consolidated revenue at Rs. 442 cr (in line with our estimates) as compared to Rs. 402 cr in the corresponding period of the previous year, 10% higher YoY.

Upgrade DAGRI to ACCUMULATE from Hold (due to correction in stock price) with revised target price of Rs868 (Previous- Rs857) based on 18x Sep'22 EPS of Rs 48.2. We have marginally tweaked our PAT estimates for FY21-23 by 03%. Dhanuka Agritech reported inline set of results. Excess rains in AugustSeptember impacting sprays, lower pest attacks and crop damage in various states limited topline growth to 10% YoY (PLe- 9%). EBITDA margin expansion of ~351 bps (ex-one offs) is commendable. Rabi season is...

We are initiating coverage on Dhanuka Agritech Limited (DAGRI) with a BUY recommendation and a Target Price of Rs 880 which implies 27% upside from the current levels.

We have upgraded DAGRI's Topline/EBITDA/APAT estimates for FY21 and FY22 by 6%/12%/12% and 6%/8%/9%. Despite factoring in higher earnings growth we downgrade the stock to HOLD (from Buy) given very sharp run up in stock price. We roll forward to Sept'22E earnings and revise our target price to Rs857 (previous Rs656) based on 18x (previous 16x) Sept'22 EPS of...

Dhanuka Agritech reported a healthy Q4FY20 performance with Sales/EBITDA/PAT growing at 18.1/38.6/45.8% to Rs 2.2bn / 458mn / 390 mn. Sales were in-line (D.est: Rs 2.31bn) with our estimates...

interstate trade thereby giving freedom to farmers for selling at an attractive enable much needed formalisation of the sector leading to better pricing of produce, more predictability in cropping pattern and generate better income for farmers. For agri-inputs industry, agriculture reforms do not entail any immediate benefit however they help to enhance long term structural growth. Formulating a Central law for Inter-state trade- Earlier reform measures of the Modi govt (like creating a model law for the states to deregulate marketing of fruits and vegetables, creating an electronic unified national market for agricultural...

Total Industry volume is up 11% to 4.4 mn tons. Urea/NPK/DAP sales are @ 2.5 mn tons/0.8 mn tons/0.5 mn tons, up 3%/28%/26% resp. SSP volumes grew 10% to 0.3 mn tons. Domestic phosphatic fertiliser sales...

Dhanuka Agritech reported mixed set of results. Benefits of higher than Change in Estimates | Target | Reco anticipated topline growth of 25% (PLe- 15%) was off-set by continued gross margin contraction (11th straight quarter) of 146 bps. Higher other income (up...

Dhanuka agritech reported a muted 1QFY20 performance, Sales/EBITDA grew by 2.8/25.9% YoY to ` 2.19bn/200mn respectively. PAT de-grew by 8.6% YoY to ` 148mn. Results were below our estimates on all fronts. Gross margins continue to be under pressure as rising prices of certain technicals (Cartap Hydrochloride technical for Caldan') could not be passed on. Though gross margins saw a contraction of 110bps YoY to 34.1%, EBITDA margins expanded by 170 bps YoY owing to lower employee costs (down 7.9% YoY) and other expenses (down 7.1% YoY)....

After seeing a 370bps yoy contraction at the operating level, we believe that Dhanuka Agritech (DAGRI) is geared for a 200bps yoy margin recovery along with an acceleration in revenue growth (8%/9% in FY20E/FY21E vs. 2% yoy in FY19). FY18-19 was one of the most unpredictable years for agro-chemical intermediate prices. As a result, the prices of key raw-materials such as metribuzin, lamda, and bifenthrin increased in the range of 150-400%....