Rallis India Ltd. share price target

Rallis India's 6% topline growth was significantly lower than estimates but 230 bps gross margin expansion and 143 bps savings in other expenses led to inline performance of EBITDA and APAT. Subdued topline growth was driven by 1) contraction in domestic B2B sales and 2) mere 5% & 3% growth in international business & seeds business respectively. Despite weak topline growth, outlook on Rallis remains robust as it is on track for a healthy double digit revenue CAGR. Domestic business growth is expected to be...

Rallis reported topline growth of 6% YoY to | 663 crore vs. our expectation of | 725 crore. The lower growth was primarily due to poor sales from seed and international business. Revenue from the seed business grew 2.8% YoY to | 261 crore while the same from crop protection was up 10.7% YoY to | 402 crore. Higher gross margins (up 230 bps YoY) due to increase in the realisation and change in the product mix translated into expansion in operational performance. OPM improved 415 bps YoY to 19.4% resulting in EBITDA growth of 35.4% YoY to | 128 crore vs. our expectation of | 110...

Rallis reported muted topline growth of 2% YoY to | 346 crore. Growth was hampered by a delay in dispatches for both domestic and international market post lockdown. The delay in dispatches for the domestic market remained at | 16 crore while the same for the international market was at | 53 crore. The crop protection segment posted growth of 1.2% YoY to | 322 crore while the seed business remained at | 24 crore (+4.3% YoY). Higher other expenses due to one-time Covid-19 related charges along with forex MTM impacted EBITDA, which came in at a loss of | 10 crore against...

Rallis India Ltd mainly deals in agri business & has emerged as one of the leaders in the...

Rallis India Ltd mainly deals in agri business & has emerged as one of the leaders in the Indian Agrochemical industry. Company has presence across value chain: Seeds ,Soil conditioners , Crop Protection Chemicals plant growth nutrients. Rallis India being leading agrochemical company has posted stong set of numbers in Q3FY20.Company with its strong product line has introduced 2 products during the quarter in Crop Protection.Also, compay is on track to launch 1 additional...

The company recently revamped its distribution policy for the domestic market, which we believe would aid the company to achieve higher growth from the domestic market, going ahead. Revenue from India was up 35% during Q3FY20, largely driven by a late Kharif and better Rabi season. Apart from this, new product launches have also helped higher growth during the quarter. Going ahead, the management expects to introduce two new molecules every year along with more focus towards Rabi crop portfolio, diversifying the revenue stream, to a certain extent in the years to come....

The management reframed distribution policy last quarter, which we believe has aided the company to post better domestic growth during this quarter. Apart from this, the company has been planning to launch five products this year of which it has already got registration of two products. This will be launched during this season. Furthermore, progress of monsoon is expected to drive Q2FY20 sales for domestic market. The company has been planning to enter a few Rabi crops seed, which we expect to diversify revenue of the company in the long run....

New capacity to fuel growth in international market for Rallis Rallis has been expanding its capacity in Metribuzin, which is considered one of the major revenue contributors in the company's international market. The management highlighted that dicamba and glyphosate have some resistance issue, which translates into better volume growth outlook for Rallis since it holds 12% global Metribuzin market share. Further, the CRAMS business has also been witnessing decent growth, which can aid overall growth in the years to come....

ICICI Securities Ltd | Retail Equity Research Rallis India reported a subdued Q3FY19 performance. Consolidated revenues in Q3FY19 were at | 417.4 crore, up 7.0% YoY. It was largely realisation led growth with minimal volume growth Standalone revenues in Q3FY19 were at | 388.2 crore, up 8.7% YoY. Revenues of subsidiaries (Metahelix, etc.) in the seasonally lean quarter, were at | 29.1 crore, down 11.5% YoY Consolidated EBITDA in Q3FY19 came in at | 27.7 crore with...

We maintain BUY with a TP of Rs. 227 (18x Dec-20EPS) Rallis India reported Q3FY19 sales of Rs. 4.17bn growing at a rate of 7.0% YoY. EBITDA and APAT de-grew by 9.4% and 27.0% YoY to Rs 340mn and Rs 183mn respectively. Margins continue to be under pressure (Gross margin/EBITDA margin contraction of 257/299 bps YoY) on account of persistent increase in price of imported technicals.