Dhanuka Agritech - Upbeat about strong revenue growth - Emkay

Reco: BUY
CMP: Rs 125
Target Price: Rs 150

- Dhanuka's Q3FY13 results were marginally below our est due to lower margins. However revenue growth of 26% was above est driven by higher contribution from low margin products

- Poor sale of its key product – "Targa Super" has adversely affected its revenues and profits in FY13 while management is upbeat about recovery in FY14

- In recent analyst meet, management sounded confident about strong revenue growth and margin expansion going forward driven by successful launch of new products

- Placement season starts from Q4 and company's cautious strategy to go slow on placement may have impact on near term profitability, we maintain BUY on attractive valuations.

Source : Equity Bulls

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