Hi HG,
Dhanuka should quote at not more than 35-40 % discount to Rallis (EV/Sales , EV/EBITDA) which brings us to a price band of 172-184 based on TTM and if Dhanuka can outperform peers in 2H as it has done in 1H then the price-band could shift upwards…but, remember, management of Dhanuka is not as professional as PI or Rallis so don’t do overboard…
Rgds.
Got it - thanks!
As per disclosures submitted today, PE Investor buys Dhanuka shares even at 160-162 on Friday, 29th November 2013, further 30,000 shares…good indication
Rgds.
3.6 Lakh shares were traded at 175 today. Any idea what was this activity and by whom?
Yes Sunil…there seems to be heightened activity in the counter as even pe guy has been accumulating steadily even at double the rate it initially took entry…it will be interesting to note the profile of seller and buyer in today’s trade if atall its reported in bulk deal…
Rgds.
URMILA DHANUKA sold 3.6 lakh shares at 174
Bought by EXCLUSIVE LEASING AND FINANCE LTD
Is there any thing we can interpret from it?
Regards,
Sunil
EXCLUSIVE LEASING AND FINANCE LTD - this is a promoter group company…so it was basically a change of hands…so I think nothing at all can be interpreted from the transaction.
Yes…it’s interse transfer nothing else.
Dhanuka awarded by INC India Innovative 100 Award : 2013
http://www.bseindia.com/xml-data/corpfiling/AttachLive/Dhanuka_Agritech_Ltd_261213.pdf
Thanks mahesh for valuable inputs. One small query I am confident of both PI and Dhanuka and even Kaveri. Where do you see more value appreciation?
Hi Shashi,
Kaveri I don’t track closely so I can’t comment on it…between PI & Dhanuka, PI is the one in which I have high conviction and I feel over long term PI will keep outperforming peers in terms of wealth creation…however, current valuations are not right for fresh entry into Pi and one has to wait for few qrts. to let the management deliver and price to settle down either higher or lower and then have a fresh relook at it even if it might mean a higher price relook…dhanuka is a play on relative undervaluation and medium term looks good…
Rgds.
Discl.- Hold both PI & Dhanuka
Link to Dhanuka MD’s interview to CNBC yesterday :
http://www.moneycontrol.com/news/business/optimisticgm-crops-eye-25-growth3-yrs-dhanuka_1016003.html
Rgds.
Discl.- Started booking profits
hi mahesh,
i have been following you since you have started posting on Dhanuka. Do you feel the re-rating of Dhanuka is complete and now it is fully valued or do you feel it can act as a long term compounder for 5 more years?
Hi Amey,
The way the market sentiment is and given that this year’s monsoons have been one of the best in last 10-12 years, whether rerating is complete or not or where the price could settle that can’t be said with conviction…however, its better to turn cautious when markets are turning greedy and this I am talking about general market rather than specifically Dhanuka…for me, the undervaluation play is almost over for Dhanuka and going ahead I will closely monitor management moves…
If monsoons don’t play havoc, Dhanuka could remain a steady compounder over long run…
Rgds.
cut-paste from Hitesh’s post in Sep : Company has been a consistent wealth creator over the years … Its stock price adjusted for splits has been around 3.5 in 2004, 18 in 2006, 37 in 2008, 50-90 in 2010 and 80-110 in 2012… Stock has given around 40 times returns in last 9 years since 2004. "
Make that a 60 bagger in 10 years now. It seems to double every two years, it’s still underowned and it’s just crossed the 1000cr mcap - which invites attention 
The junior Dhanukas are MBAs from reputed Bombay colleges. Better than pay-as-you-go foreign MBAs that the rich kids usually opt for.
Dhanuka Agritec)- Credit Rating upgraded by ICRA Limited for Long Term and Short Term Borrowings
Dhanuka Agritech Ltd has submitted to BSE a copy of the press release regarding the Company’'s Credit Rating upgraded by ICRA Limited.
Long-term rating of the Company has been upgraded from A to A+ for Rs. 50.0 crores fund based facilities. ICRA has also upgraded the short-term rating from A1 to A1+ for Rs. 50.0 crores non-fund based limits of Company.
My Q3Fy14 estimate for Dhanuka is provided below :
|
( fig. in Rs. cr. ) |
Q3FY14e |
Q3FY13 |
|
Revenue |
178 â 182 |
139 |
|
EBITDA |
24.9 â 28.1 |
15.8 |
|
PAT |
16.5 â 19.3 |
11.68 |
A commercial by Dhanuka promoting water conservation. Any idea whether there’s a commecial aspect for Dhanuka or is it a CSR activity only
Q3 Results are out:
Sales up from 139.6 Cr to 167 Cr - YoY ( 20% )
Net profit up from 11.68 Cr to 21.27 Cr YoY ( 82% )
