DHANUKA AGRITECH
Q1 FY 21 RESULTS REVIEW
COMPANY OVERVIEW
Management
Ram
Gopal Agarwal Chairman
Mahendra
Kumar Dhanuka Managing Director
Harsh
Dhanuka Whole Time Director
Arun
Kumar Dhanuka Executive Director
Rahul
Dhanuka Executive Director
Mridul
Dhanuka Executive
Director
As
we can see, the top management is mostly in the hands of the Dhanuka family
members.
Dhanuka
Agritech is the umbrella company for the business of agro-chemicals,
fertilizers, and seeds of Dhanuka Group.
The
product range of the company includes:
Weedicides, 3 D products i.e. Dhanuvit is the new 3D product of
the company other 3 D products are Dhanzyme Granules and Dhanzyme Liquid.
Super Star Products- Targa Super is the new Super Star Product of the
company.
Herbicides- Craze is the herbicides offering of the company. The
company has been promoting seed treatment by operating seed treatment and
grading machines at the doorstep of the farmers to bring about awareness
regarding the benefits of seed treatment. The company gives them the added
benefit of superior grading of the seeds with automatic machines in a single
process
Q1 RESULTS REVIEW :
DHANUKA AGRI
|
Q1FY21
|
Q4FTY20
|
Q1FY20
|
YOY
|
QOQ
|
TOTAL REVENUE
|
381.21
|
236.25
|
222.74
|
71.15
|
61.36
|
REVENUE
|
373.85
|
227.57
|
218.98
|
70.72
|
64.28
|
TOTAL EXP
|
311.99
|
185.93
|
202.02
|
54.44
|
67.8
|
PBT
|
69.22
|
50.32
|
20.73
|
233.91
|
37.56
|
NET PROFIT
|
51.79
|
39
|
14.68
|
252.79
|
32.79
|
EPS
|
10.89
|
8.2
|
3.08
|
253.57
|
32.8
|
EQUITY
|
9.5157
|
||||
FV
|
RS.2
|
||||
MP
|
877
|
||||
PE
|
20.13
|
||||
52 Wk L/H
|
261
|
935
|
Last
5 years annual results indicate that Sales growth has been very gradual and net
profit Growth is Negligible.
ANNUAL REPORT 2018-19
Fnancial year 2018-2019 was an
exceptional year due to closure of 1000 of units in China, the prices of raw material
has increased disproportionately, which company could not pass to the farmers
completely.
This
has not only impacted the sales growth plans of the company but has also
impacted the profitability.
Now IMD
has forecasted a normal monsoon for this year. Dhanuka hopes to deliver much better
performance during fnancial
year 2019-2020.
During
Financial Year 2018-19, the Company has completed buyback of 15 lakhs equity
shares of the company at the rate of Rs. 550 each comprising of the total buyback size 82.50
Crores. The Broad of Directors has declared dividend at the rate of 30% i.e 60
paisa per equity share of Rs.2 each for Financial Year 2018-19.
SWOT ANALYSIS
- high TTM EPS Growth
- Growth in Net Profit and Profit Margin (QoQ & YoY)
- Low Debt
- Improving Book Value
- FII / FPI /Institutions increasing their shareholding
- Strong Price Momentum
Past
price comparison
PRICE RISE
|
1 YR BEFORE
|
Current Price
|
%Gain / Loss
|
||
Open Price
|
403.5
|
834
|
106.69
|
||
High Price
|
407.1
|
895
|
119.85
|
||
Volume
|
1,250
|
27,871
|
2129.68
|
||
3 Months BEFORE
|
Current Price
|
%Gain / Loss
|
|||
Open Price
|
445
|
834
|
87.42
|
||
High Price
|
471.95
|
895
|
89.64
|
||
3 Y BEFORE
|
Current Price
|
%Gain / Loss
|
|||
Open Price
|
822.55
|
834
|
1.39
|
||
High Price
|
825
|
895
|
8.48
|
||
Share Holding Pattern in (%)
|
|||||
Standalone
|
Jun-20
|
Mar-20
|
Sep-19
|
Jun-19
|
|
Promoters
|
75
|
75
|
75
|
75
|
|
Pledged
|
14
|
14
|
3.39
|
0
|
|
FII/FPI
|
0
|
0
|
0
|
0
|
|
Total DII
|
16.44
|
15.64
|
15.11
|
15.31
|
|
Fin.Insts
|
0.02
|
0.01
|
0.02
|
0.01
|
|
Insurance Co
|
0
|
0
|
0.04
|
0
|
|
MF
|
12.83
|
12.4
|
11.92
|
11.73
|
|
Others DIIs
|
3.59
|
3.23
|
3.13
|
3.57
|
|
Others
|
8.56
|
9.36
|
9.89
|
9.7
|
|
Total
|
100
|
100
|
100
|
100.01
|
Valuation
Market Cap (Rs Cr.) 4,003.72
P/E
28.26
Book Value (Rs) 148.74
Dividend (%) 600.00
Industry P/E 43.65
EPS (TTM) 29.73
Price/Book 5.66
Dividend Yield.(%) 1.43
Face Value (RS) 2.00
Dhanuka Agritech has three
manufacturing facilities in Rajasthan, Gujarat and J&K.
According to one broker,
Dhanuka's asset light business model, superior return ratios and the recent
product launches are expected to drive growth.
Dhanuka is expected to
navigate through the pandemic with the help of a normal monsoon, strong
distribution and product brand re-call.
Dhanuka
Agritech reported a healthy performance in Q4FY20 with profit rising 45.8
percent to Rs 39 crore, revenue up 18.1 percent to Rs 227.6 crore and EBITDA
surging 38.6 percent to Rs 45.8 crore compared to same quarter last year.
"Since Dhanuka's
fortunes are entirely dependent on domestic agrochemical industry (with
underlying tailwinds for the sector) earnings growth has a potential to
surprise on the upside," said one brokerage which feels earnings growth is
expected to accelerate driven by robust demand for Herbicides, traction in
North & South India along with 5 new launches in FY21.
"Removal of weeds on
certain crops like rice is very labour intensive and with lower labour
availability, herbicide sales is seeing strong demand. Very severe locust
outbreak is also leading to sharp demand surge for insecticides," the
brokerage said.
The management is hopeful
of gross margin expansion in FY21. The company is secured in terms of
availability of products for the next 2-3 months.
In full financial year
2019-20, Dhanuka Agritech reported a 25.7 percent growth in profit at Rs 141.5
crore and 11.4 percent increase in revenue at Rs 1,120.1 crore compared to
previous year. Volume growth was 12.7 percent in FY20.
What Dhanuka says about
itself :
Dhanuka Agritech Limited
is one of India’s leading agro-chemical Company and is listed by Forbes
Magazine in the category of “200 Best under A Billion Companies in Asia
Pacific”.
We have been awarded
Company of the Year (Agro Chemical Category) by Federation of Indian Chambers of
Commerce and Industry (FICCI) in 10th Biennial International Exhibition and
Conference –India Chem 2018 and has bestowed with many awards and recognitions
from to time.
The Company has recently
been recognized as “Great Place to Work for the year 2018-19”.
We have PAN-India presence
through our marketing offices in all major states across India.
The 3 manufacturing units
with 40 warehouses and network of over 14 branch offices across the Indian
geography caters to 7200 Distributors & around 75, 000 Dealers.
Dhanuka’s workforce with
more than 1000 techno–commercial staff, supported by a strong R&D division
and a robust distribution network helps Dhanuka to reach out to approximately
10 million Indian farmers with its products and services.
Dhanuka’s R&D division
has world class NABL Accredited Laboratories and has International
collaboration with the world’s seven leading agro-chemical Companies from US,
Japan and Europe which helps them to introduce the latest technology in Indian
farmlands.
7k distributors
75k retailers
10m farmers
SANAND (GUJARAT):Second
largest capacity for manufacturing granules in India. It has land area of
62,700 square meters with largest dedicated Cartap Hydrochloride SP formulation
facility.
Udhampur (j&K)
State of-the-art
production line. 12 filling lines dedicated to liquids like EC, SC & SL.
Online monitoring of quality conforming to the highest standards. Two separate
lines for powder formulations & zero water discharge facility.
Keswana (Rajasthan)
Dhanuka has commissioned
its new plant at Keshwana in Rajasthan which have one of the largest liquid
formulation facilities in India at its full capacity.
A new APP of Dhanuka, can be
downloaded from Google Play store with name of Dhanuka FL App. The goal with
this new app is to provide our team an easier way to complete the sales process
& also allow the user to have a crisp overview of his data.
The application
is a one stop shop for a quick overview of essential data. Our current users
& customers find the app & data very useful. We are constantly updating
our application to provide the user with unmatched experience.
No comments:
Post a Comment