Prabhudas Lilladher is bullish on Dhanuka Agritech has recommended buy rating on the stock with a target price of Rs 656 in its research report dated June 11, 2020.
Prabhudas Lilladher's research report on Dhanuka Agritech
Dhanuka Agritech reported better than expected results driven by higher than anticipated sales in South (up 55%) and West (up 95%) in 4QFY20. Operating leverage benefits and cost control measures led to 39% growth in EBITDA. Earnings growth is expected to accelerate driven by robust demand for Herbicides, traction in North & South India along with 5 new launches in FY21. Since Dhanuka's fortunes are entirely dependent on domestic agchem industry (with underlying tailwinds for the sector) earnings growth has a potential to surprise on the upside.
Maintain Buy with target price of Rs 656 based on 16x FY22E earnings.
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