Dhanuka Agritech’s dream run
Continuation of stock outperformance will depend on success of new products and sustainability of high return ratios
The stock of agrochemicals maker Dhanuka Agritech Ltd is showing no signs of exhaustion. After rising 61% in 2013, it has gained more than 80% so far this year. Steady growth and superior return ratios explain the climb. Notwithstanding the vagaries facing the agriculture sector, Dhanuka Agritech has managed to grow its business in a robust manner. Sales and profits more than doubled over the last five years.