Dhanuka Agritech extends gain after board approves share buyback

Dhanuka Agritech was up 2.3% at Rs 744, extending its Thursday’s 7% surge on the National Stock Exchange (NSE) in an otherwise weak market, after the company reported 30% year on year (YoY) growth in net profit at Rs 49.2 crore in September quarter (Q2FY17). The agrochemicals company had profit of Rs 37.8 crore in the same quarter last fiscal.

Net sales grew 14% at Rs 309 crore on YoY basis. EBITDA ((earnings before interest, taxes, depreciation, and amortization) margin improved 350 basis points at 23.9% from against 20.39% in Q2FY16.

The board approves the share buyback proposal at a maximum price not exceeding Rs 850 per share through tender offer.

“The company intends to buyback not more than one million equity shares representing 2% of the total equity share for an amount not exceeding Rs 80 crore,” Dhanuka Agritech said in a statement.

At 01:25 pm, the stock was up 1.8% at Rs 740 on the NSE, as compared to 1.7% decline in the Nifty50 index. A combined 38,392 shares changed hands on the counter on the BSE and NSE.


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