Dhanuka Agritech spurts as board to mull buyback terms

Dhanuka Agritech rose 2.20% to Rs 755.30 after the company said its board will meet on Wednesday, 16 September 2020, to consider final terms and conditions of the proposed share buyback.

The board of Dhanuka Agritech approved share buyback on 22 July 2020. The company received board approval to buyback shares worth up to Rs 100 crore at a price not exceeding Rs 1000 per share. At the maximum buyback price and the maximum buyback size, the indicative maximum number of equity shares bought back would be 10 lakh equity shares.

The scrip has surged 189.38% from its 52-week low of Rs 261 hit on 23 March 2020. On the technical front, the stock's RSI (relative strength index) stood at 45.174. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading between its 50-day moving average (DMA) placed at 795.31 and its 200-day moving average (DMA) placed at 551.65.

Dhanuka Agritech consolidated net profit surged 252.80% to Rs 51.79 crore on 70.7% jump in net sales to Rs 373.85 crore in Q1 June 2020 over Q1 June 2019.

Dhanuka Agritech manufactures insecticides, pesticides and other chemicals. The company has technical tie-ups with 4 American and 6 Japanese companies.

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