InvestorQ : Since I am a shareholder in Dhanuka Agritech, can you tell me about the latest quarter results and if the stock is still attractive?
Khushi Patel made post

Since I am a shareholder in Dhanuka Agritech, can you tell me about the latest quarter results and if the stock is still attractive?

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Dhwani Mehta answered.
4 weeks ago
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Based on the latest results of Dhanuka Agritech, it looks like you can definitely invest in the stock. Just look at the numbers. It reported 10.1% growth in sales for the Sep-20 quarter at Rs.442.39 crore. Dhanuka was a beneficiary of solid agri demand on the back of a bumper Kharif output expected and higher rural incomes.

Operating profits for the quarter ended Sep-20 was 26.8% higher on a yoy basis at Rs.85.77 crore at the same time, the net profit was higher by 16.8% at Rs.70 crore supported by higher levels of non-operating other income.

As a result, the OPM of the company expanded by 257 bps at 19.39% while the NPM also improved by 92 bps at 15.84%. In addition, the good news was that the cash generation from operating activities was up six-fold at Rs.130 crore via better tweaking of working capital.

Dhanuka did not face the cyclical impact of COVID as it caters to the agricultural segment. Now, this has been one segment that continued to see robust demand as is evident from the Kharif output expected this year. This was a big advantage for Dhanuka.

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