Dhanuka Agritech up 7% after Co fixes buyback price at Rs 1,000 per share

Shares of Dhanuka Agritech rallied nearly 7 per cent to Rs 820 apiece on the BSE on Thursday, a day after the company approved the buyback of up to 10,00,000 equity shares at a final price of Rs 1,000 per share for an aggregate amount not exceeding Rs 100 crore.

At 09:37 AM, the stock was trading around 5.5 per cent higher at Rs 810 on the BSE against Wednesday's close of Rs 768.30. In comparison, the S&P BSE Sensex was trading 0.38 per cent lower at 39,155 levels.

The stock had hit a 52-week high of Rs 935 on July 20, 2020 while its 52-week low level stands at Rs 261, touched on March 23, 2020.

Dhanuka Agritech has fixed September 28, 2020 as the Record Date for the purpose of determining the entitlement and the names of equity shareholders who are eligible to participate in the buy back.

For the quarter ended June 2020 (Q1FY21), the company's consolidated net profit surged 253.03 per cent to Rs 51.79 crore on 70.72 per cent jump in net sales at Rs 373.84 crore over Q1 June 2019.

Profit before tax (PBT) soared 234.02 per cent to Rs 69.21 crore in Q1FY21 as against Rs 20.72 crore in Q1FY20.

"Expectation of a normal monsoon coupled with the addition of new products to the portfolio is likely to sustain Dhanuka Agritech's growth over FY21. Hence, based on the favourable sector dynamics, we have revised up FY21/22E EPS 18 per cent/18 per cent while raising our target multiple to 24x, leading to revised target price of Rs 1,079 (Rs 841 earlier) based on FY22E EPS," Eelweiss Securities had said in a report dated July 22.