Please refer to important disclosures at the end of this report
1
Dhanuka Agritech Limited (DAL) manufactures a wide range of agro-chemicals
like herbicides, insecticides, fungicides, miticides, plant growth regulators in
various forms – liquid, dust, powder and granules. The company launched three
new 9(4) products in Q2FY17 which are BULLON (insecticides), AASHITO
(insecticides) and Delight (fungicide). The company is likely to launch two ne
w
9(3) products in FY18. Management says that top 10 products contribute 38% o
f
total revenue and top 5 contribute 27% of total revenue.
W
orking capital during
the H1FY17 has improved to 133 days compared to 141 days in the March’16
quarter and 148 days in the Sept’15 quarter. Debtor days have fallen to 82 days
as of Sept’16 from 89 days and 100 days in March’16 and Sept’15 ending
quarters respectively as the company did not offer extended credit period to the
distribution channel. The Management expects to maintain debtor days at current
levels. The company has reduced debt and is virtually debt free. The compan
y
has a good return on equity (ROE) track record: 3 Years ROE 27.29% and has
been maintaining a healthy dividend payout of 24.48%. Hence Buy.
BUY
CMP `758
Stock Info
Sector
Beta
Bloomberg Code
Shareholding Pattern (%)
Promoters 75.0
MF / Banks / Indian Fls 11.8
FII / NRIs / OCBs 2.9
Indian Public / Others 10.3
Abs. (%) 3m 1yr 3yr
Sensex (2.8) 12.7 28.2
Dhanuka Agritech 16.0 42.4 259.1
0.5
Reuters Code DHNP.BO
2
BSE Sensex 27,258
Nifty 8,417
Face Value (
`
)
Agro Chemicals
Market Cap (
`
cr) 3,788
52 Week High / Low 796/473
Avg. Daily Volume 8,380
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Dhanuka Agritech
Others |
A
gro Chemicals
January 19, 2017
Dhanuka Agritech |
A
gro Chemicals
January 19, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Dhanuka Agritech
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
p
eriod
)
: Reduce
-5% to -15%
)
Sell
(
< -15
)