Dhanuka Agritech gains 4%, hits 52-week high on share buyback proposal

In the past three months, the stock of Dhanuka Agritech has outperformed the market by surging around 88 per cent, as compared to 18 per cent rise in the S&P BSE Sensex.
Shares of Dhanuka Agritech hit a 52-week high of Rs 849, up 4 per cent in early morning trade, on the BSE on Monday after the company said its board will consider share buyback proposal on Wednesday, July 22, 2020.

Earlier the company had said that the board of directors of the Company is scheduled to be held on July 22, 2020, to consider and approve Un-audited financial results of the Company for the quarter ended June 30, 2020.

The company has now informed the BSE that the board of directors, in the meeting scheduled to be held on July 22, 2020, would also consider and evaluate the proposal for buyback of its fully paid up equity shares of the Company and other related matters.

As on June 2020, promoters held 75 per cent stake in Dhanuka Agritech. Out of 25 per cent public shareholding, mutual funds held 12.83 per cent holding, followed by individual shareholders (8.57 per cent) and overseas corporate bodies (1.41 per cent).

In the past three months, the stock of Dhanuka Agritech has outperformed the market by surging around 88 per cent, as compared to 18 per cent rise in the S&P BSE Sensex.

For January-March quarter (Q4FY20), the company’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) rose 38.6 per cent year-on-year to Rs 45.78 crore from Rs 33.03 crore in the previous year quarter. EBITDA margin improved 297 basis points (bps) to 20.11 per cent from 17.14 per cent during the quarter.

With this year’s favorable monsoon forecast, coupled with a slew of initiatives announced by the government, the management is hopeful of much positive performance in the fiscal year 2020-21.

At 09:28 am, the stock was trading 3 per cent higher at Rs 838 on the BSE, as compared to 1 per cent rise in the S&P BSE Sensex. A combined around 26,000 equity shares had changed hands on the counter on the NSE and BSE till the time of writing of this report. 



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