Dhanuka Agritech rises on approval of equity shares buyback

Dhanuka Agritech Limited, one of India's leading agrochemical companies, rallied 7 per cent on BSE after announcing buyback of equity shares.

The company approved buyback for not more than 10,00,000 equity shares at a final buyback price of Rs 1,000 per equity share, which is payable in cash for an aggregate amount up to Rs 100 crore.

Dhanuka Agritech product portfolio includes herbicides, insecticides, fungicides & bio-stimulants and with over 350 active SKUs, it has one of the most extensive market penetrations in the agrochemical industry. 

On the financial front, the company’s consolidated net profit for June quarter for the financial year 2020 surged over 252 per cent YoY to Rs 51.8 crore compared to Rs 14.7 crore it reported for the same quarter last year. The company’s sales grew as much as 71 per cent YoY to Rs 374 crore.

EBITDA surged 229 per cent to Rs 65 crore from Rs 19.8 crore in the corresponding quarter last year, with a margin expansion of 8.4 per cent YoY. EBITDA margin for this quarter stood at 17.46 per cent.

On Thursday, the stock closed at Rs 823.8 with gains of 7.22 per cent with an intraday high of Rs 839.35 on BSE.