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Dhanuka Agritech is a leading domestic focused agrochemical company with key strength in distribution and launch new products in partnership / in licensing from MNC companies. The asset light business model and strict control over working capital has led to very low leverage and higher return ratios. The fortunes of the company are impacted by monsoons and to that extent there could be volatility in earnings. We have a neutral weight rating due to soft near term performance coupled with reasonable valuation. New product launches and pick up in monsoon could drive performance in the near term. Management is guiding for low double digit growth rate as impact of Covid 19 has slowed down activity – 04-08-2021 Price: 949.50 Rating: Neural weight Recommendation: Hold

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