Rallis India Ltd. share price target

Consolidated revenue grew by 7% yoy to Rs4.1bn, mainly driven by value growth. During the quarter, domestic business largely remained flat while the growth was fostered by international markets, primarily by the US, Europe, and Brazil. EBITDA margin (Consol.) contracted by 310 bps yoy to 6.6% due to several one-offs during the quarter: 1) sales return of Rs49mn; 2) provision of Rs22.4mn for debtors; 3) Rs14.3mn hit on the CRAMS (CPA business); and 4) IT-related cost of Rs30mn. of new molecules to gain market share within India and phase-wise capex for new product development and backward integration to create leadership in global market looks positive....

Rallis India reported healthy performance in Q2FY19. Total consolidated revenues in Q2FY19 stood at | 653.8 crore, up 11.2% YoY. Standalone revenues in Q2FY19 were at | 613.2 crore, up 11.8% YoY. Revenues of subsidiaries (Metahelix, etc.) in the seasonally lean quarter, stood at | 40.6 crore, up 3.1% YoY Consolidated EBITDA in Q2FY19 came in at | 123.4 crore with corresponding EBITDA margins at 18.9% (down 200 bps YoY) Consolidated reported PAT in Q2FY19 came in at | 85.1 crore, up...

We maintain BUY with a revised TP of Rs 220/sh (18x Sept'20 EPS). Rallis India reported a decent 2Q result, Sales/EBITDA/PAT grew by 11.2/0.7/10.1% YoY to Rs 6.53bn/Rs 1.23bn/Rs 852mn respectively. Gross margins expanded by 209bps YoY to 41.9% on account of liquidation of cheaper RM inventory from 1QFY19 entailing into gross margin expansion. Below normal SW monsoon (9% below LPA), commodity prices lower than MSPs, persistent raw material inflation in the near term are expected to take a toll on domestic crop protection companies.

We maintain BUY with a TP of Rs 271/sh (23x FY20E EPS). Rallis India reported strong results for 1QFY19. Consolidated revenues stood at Rs 5.73bn (+29.7% YoY), the performance was largely driven by strong volume growth and marginal price hike. As the seeds business is largely Kharif focused, subsidiary revenues (Metahelix) grew by 11.3% YoY to Rs 2.20bn.

ICICI Securities Ltd | Retail Equity Research Rallis India reported a healthy performance in Q1FY19 Consolidated revenues in Q1FY19 were at | 573.1 crore, up 28.6% YoY. Standalone revenues in Q1FY19 were at | 352.4 crore, up 42.5% YoY. Revenues of subsidiaries (Metahelix) in the seasonally important quarter i.e. Q1FY19 were at | 220.7 crore, up 11.4% YoY Consolidated EBITDA in Q1FY19 came in at | 83.1 crore with corresponding EBITDA margins at 14.5% (down 110 bps YoY). In the...

We maintain BUY with a TP of Rs288/sh (23xMarch FY20EEPS). Rallis India reported disappointing revenues and earnings for 4QFY18. Consolidated revenues stood at Rs 3.71bn (+6.4% YoY). The company's performance was subdued as there was no price hike and volume growth was low. As the seeds business is largely Kharif focused, subsidiary revenues were lackluster at Rs 220mn (+4.2% YoY).

South West Monsoon, which accounts for ~70% of annual rainfall domestically, has been forecast to be normal in nature (IMD at 97% of LPA & Skymet at 100% of LPA). Normal monsoon is likely to result in an increase in food grain production. This coupled with government directive to ensure minimum support price (MSP) at 1.5x the cost of production for key crops domestically and a wider e-NAM network is likely to result in healthy farm income. It is positive for all agri inputs, including Rallis. On a consolidated basis, Rallis realizes ~55% of its yearly...

Consolidated revenue at Rs3.7bn (+6% yoy) was in line with estimate. EBITDA stood at Rs336mn (-20% yoy). Gross margins improved by 130bps yoy to 45.6% while EBITDA margins contracted by 300bps yoy to 9.1%. Improvement in consolidated gross margins was driven by better performance of Metahelix. Standalone gross margins contracted by 110bps yoy to 42.8% due to shift in the product mix and heightened competition amid weak demand. turns from the first year itself with healthy margins (20%+). The company is confident of launching 12 new molecules in the next 5 years (2-3 molecules each year)....

ICICI Securities Ltd | Retail Equity Research Rallis India reported a mixed Q3FY18 performance wherein robust sales growth was accompanied by a muted operational performance Total consolidated revenues in Q3FY18 were at | 390.2 crore (up 17.7% YoY). Standalone agrochemicals segment reported revenues of | 357.3 crore (up 15.6% YoY) while revenues of subsidiaries (Metahelix) in Q3FY18 (seasonally weak quarter) were at | 32.9 crore Consolidated EBITDA in Q3FY18 came in at | 37.5 crore (EBITDA...

We maintain BUY with a TP of Rs 313/sh (23x Dec FY19E EPS). Rallis India reported good revenue growth of 18.6% YoY for 3QFY18 at Rs 3.9bn, driven by ~15% volume growth in domestic and export businesses. EBITDA de-grew 11.5% at Rs 0.3bn, largely driven by lower gross profit. EBITDA margin stood at 9.6% (-326bps YoY). APAT de-grew marginally by 1.4% YoY at Rs 251mn.