Dhanuka Agritech Share Price Target Forecast 2022, 2023, 2025, 2030

 


07 January, 2022

Emkay Global is buying Dhanuka Agritech with a target price of Rs 1000.

Dhanuka Agritech got a buy call from Emkay Global with a target price of Rs 1000. Dhanuka Agritech is now trading at Rs 751.75. When Dhanuka Agritech Ltd. price may achieve stated objective, analyst says it will take one year.

Dhanuka Agritech Ltd., founded in 1985, is a Small Worth business in the Pesticides/Agro Chemicals industry with a market cap of Rs 3493.14 crore.

For the year ending 31-Mar-2021, Dhanuka Agritech Ltd’s primary Products/Revenue Segments are Agrochemicals, Other Operating Revenue, Scrap, and Power Generation.

Financials

The firm reported a Consolidated Total Income of Rs 445.76 Crore for the quarter ended September 30, 2021, up 19.98 percent from the previous quarter’s Total Income of Rs 371.54 Crore and down -1.08 percent from the same quarter last year’s Total Income of Rs 450.62 Crore. In the most recent quarter, the company generated a net profit after tax of Rs 63.38 crore.

Reasons for Investing

With a Buy rating and a Mar’23E TP of Rs1,000, the brokerage assumes coverage on Dhanuka Agritech (upside 32 percent ). The target P/E multiple is 19x Mar’24E EPS, according to the fair value analysis. Our strong buy recommendation for Dhanuka is based on the following factors: 1) significant capex of Rs3 billion in FY22E-24E to capitalise on export opportunities; 2) revenue CAGR of 13% in FY22-25E vs. 7% in FY15-20; and 3) debt-free balance sheet with cumulative FCFF generation of Rs3.7 billion in FY22-25E.

Dhanuka’s push into the export markets through technicals manufacture is aided by offtake visibility derived from its strong and long-standing ties with global agrochemical companies, as well as the China+1 strategy. The export venture is designed to reduce the company’s present reliance on the domestic market, which is vulnerable to monsoon whims. The major risk derives from the vagaries of the monsoons, since India is a monsoon-dependent agricultural market; 2) For the first time, the firm is experiencing significant capex, and any delays in operationalizing/stabilizing these new capabilities can materially damage our export revenue forecasts.

FII Holdings/Promoter

As of September 30, 2021, promoters controlled 70.0 percent of the corporation, FIIs 4.7 percent, and DIIs 14.85 percent.

economictimes.com is the source for this information.


30 October, 2021

Dhanuka Agritech’s net profit fell 10% to Rs 63 crore in the second quarter.

Dhanuka Agritech Ltd, an agrichemical company, reported a 10% drop in its consolidated net profit for the quarter ended September, at Rs 63.37 crore. In the previous fiscal year, the company’s net profit was Rs 70.08 crore.

According to a regulatory filing, total income decreased to Rs 445.75 crore in the second quarter of current fiscal year, down from Rs 450.61 crore in the previous year’s equivalent period.

During the previous financial year, the Gurugram-based company made a total profit of Rs 1,421.17 crore.

economictimes.com is the source for this information.


06 October, 2021

Dhanuka Agritech predicts a 17 percent margin by the end of FY22, and a 10% price increase in November.

The agrochemical industry is being targeted because of China’s power outages and the influence they’ve had on agrochemical businesses’ input prices. Players like UPL, Dhanuka, and Bayer CropScience, according to Kotak, are likely to be badly impacted. CNBC-TV18 met with MK Dhanuka, MD, Dhanuka Agritech, to learn more about the impact.

“Prices of raw materials, particularly those imported from China, have risen dramatically,” he noted, “and there are a variety of causes for these price increases.” First, China is experiencing a power crisis, which has forced the Chinese government to restrict factory operations in a number of regions. Factory operations are limited to two days each week. Second, there is a severe phosphate scarcity, and phosphorus prices have virtually doubled. As a result, the cost of all organophosphorus products has increased; third, the Chinese government wants blue sky and thus wants carbon emissions to be drastically reduced due to the upcoming Olympic games; and fourth, logistics – non-availability of containers has caused freight prices to increase 2-3 times; and fifth, the Chinese government wants blue sky and thus wants carbon emissions to be drastically reduced due to the upcoming Olympic games – and the fourth reason is logistics – non-availability of containers has caused freight prices to increase 2-3 All of these factors have resulted in a rise in raw material prices.”

Although this has had an impact on Dhanuka, the impact has been minimal because Japan accounts for 75 percent of the company’s imports, while China accounts for just 25 percent.

“We have been attempting to pass on the price increases,” he said, “but since the Kharif season is now gone, the price hikes will come from November onwards, and we don’t expect any price rises in October.” Inventory is in the pipeline at old pricing, therefore passing on the current prices to the end client, the farmer, will take a month or two.”

On the impact on margins, he claimed that the company’s margins will not drop any further from their current levels of 17 percent, but will drop 150 to 200 basis points from their previous high of 19 percent. “So, hopefully, margins will be about 17% by the conclusion of this fiscal year, which is FY22,” he said.

He also stated that price increases will vary by product. “We will eventually have to pass on the glyphosate price rises because there was a significant spike in costs of organophosphorus goods like Glyphosate, which went up by 60-70 percent.” However, because certain molecules’ pricing have remained unchanged, the average price rise would be around 10%,” Dhanuka explained.

cnbctv18.com is the source of this information.


03 September 2021

ICRA revises Dhanuka Agritech’s long-term rating and confirms its short-term rating on bank facilities.

ICRA Limited has upgraded Dhanuka Agritech Limited’s long-term rating from ICRA AA- to ICRA AA and confirmed its short-term rating of ICRA A1+ for a total of Rs63.35 crore in bank facilities. The long-term outlook has been changed from Positive to Stable.

Bank Rs15cr has been upgraded to ICRA AA on the long-term scale rating provided to cash credit limitations in HDFC Bank Rs15cr and HSBC (Stable). Non-fund-based limitations in HDFC Bank Rs15cr and HSBC Bank Rs18.35cr have been rated ICRA A1+ on a short-term scale.

“Following an assessment of recent developments, the ICRA Rating Committee has amended the long-term Rating of ICRA AA- to ICRA AA and has retained the short-term Rating of ICRA AI+.” On a long-term basis, Oudook has been downgraded from Positive to Stable. Instruments with this grade are seen to have a high level of safety when it comes to meeting financial commitments on schedule. “Such products have a very minimal credit risk,” the business said in a statement released on Thursday by ICRA.

Dhanuka Agritech Ltd was trading at Rs828.10 a piece at 10:08 a.m. on the BSE, up Rs1.65 or 0.2 percent from its previous close of Rs826.45 per piece.

IIFL is the source of this information.


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