Prabhudas Lilladher's research report on Dhanuka Agritech
Dhanuka Agritech (DAGRI) reported decent set of numbers in a seasonally lean period and cost related headwinds during the quarter. It reported Revenue/EBITDA/PAT growth of 16%/1%/12% YoY during 4QFY22 which was in-line with our estimates. Key highlights are: (a) volume and price growth of 11% and 5% YoY respectively in 4Q (FY22 3.1%/3.4% YoY); (b) Inflated RM scenario and its inability to fully pass on prices resulted into lower margins; (c) ITI for FY22 stood at 10% (FY21 11%); remains confident to improve going forward led by new product launches; (d) to launch 3 new 9(3) and 9(4) molecules each in 1QFY23; (e) NWC increased by 3 days to 135 as on March’22; (f) capex program of INR3bn for setting up of formulation and technical units at Dahej is well on track; likely to be commissioned by 4QFY23.
We largely maintain our FY23/24 EPS and expect DAGRI to clock Revenue/PAT CAGR of 10%/14% each over FY22-FY24E. Maintain ‘BUY’ with an unchanged TP of INR870 based on 15xFY24E EPS.
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