Dhanuka Agritech Ltd is engaged in the manufactures a wide range of agro-chemicals like herbicides, insecticides, fungicides, plant growth regulators in various forms - liquid, dust, powder and granules.
Has been a casualty of weak macro (poor monsoon/farm economics/higher RM costs); EBITDA margins have declined 500 bps from peak (14% from 19% levels).
With emerging signs of macro improvement, current margins are in in the trough zone; build-in 170bps expansion in EBITDA margins through FY22E. Asset light model would continue to drive solid FCF generation; expect ~6% annual FCF yield.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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