Dhanuka Agritech: Stellar rally since our previous call, is there room for more?
Strong stock rally in Dhanuka Agritech has pushed up valuations, but its growth story is intact
July 23, 2020 / 11:54 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
- Stellar performance in Q1
- Strong volume growth and margin expansion
- Manufacturing operations back to normal
- Healthy monsoon is positive for demand
- Strong debt-free balance sheet
- Book gains or tender in the buyback and wait to re-enter on a correction
Dhanuka Agritech (DAL) (CMP: Rs 890, Mcap: Rs 4,234 crore) reported a stellar performance in Q1FY21, with strong revenue growth backed by robust volume growth. Gross and net margins expanded as well.
We had recommended the stock in our weekly tactical pick on May 8,...