Rallis India Ltd. share price target

For 2QFY2018 Rallis India (Rallis) reported a yoy growth of 9.1% in sales to `588cr (v/s. `539cr in 2QFY2017). The performance of Rallis was impacted during the quarter on the back of transition to GST and high channel inventory. On the operating front, the OPM came in at 20.8% (v/s. 17.8% in 2QFY2017). Owing to lower sales growth the Adj..

Rallis Q2FY18 PAT at Rs 773 mn (up 16% YoY) was in line with our estimate. Consolidated revenue growth at 9% YoY (5% expected) was admirable given uneven rainfall distribution and lower pest incidents. However, we believe the recent price hikes could have aided the revenue growth and volume growth

We maintain BUY with a TP of Rs 290/sh (23x FY19E EPS). Rallis India reported healthy revenue at Rs 5.8bn (+9.1% YoY) in 2QFY18, driven by double-digit volume growth in domestic and export businesses. EBITDA grew 17.5% at Rs 1.2bn, largely driven by a drop in raw material costs and other expenses. EBITDA margin stood at 20.8% (+149bps YoY). APAT grew 16.1% YoY at Rs 774mn.

ICICI Securities Ltd | Retail Equity Research Rallis India reported a healthy Q2FY18 performance with standalone agrochemical segment reporting 8.9% YoY sales growth in a seasonally important quarter (| 549 crore). The performance is encouraging given the concern over agri input sales amid near normal monsoon 2017 and transition period involving GST Total consolidated revenues in Q2FY18 were at | 587.9 crore, up 7.1% YoY. Revenues of subsidiaries (Metahelix) in Q2FY18...

Recently, the stock price of Rallis India Ltd. (Rallis India) corrected by ~12% from 52-week high of Rs.265 as the company has reported muted performance on standalone basis in the recent quarters. Rallis India is a market leader in the crop protection domestically and present across the agricultural value chain ranging from hybrid seeds to plant growth nutrients to organic manure & soil conditioners to crop protection. Under the crop protection segment, it manufactures and markets insecticides, herbicides and fungicides. Rallis India has capacity...

For 1QFY2018 Rallis India (Rallis) reported a yoy de-growth of 1.0% in sales to `446cr (v/s. `450cr in 1QFY2017). The performance of Rallis was impacted during the quarter on the back of transition to GST and high channel inventory. On the operating front, the OPM came in at 15.6% (v/s. 16.7% in 1QFY2017). Owing to lower sales growth the ..

Near-term outlook: Monsoon is key for the Indian agricultural sector. The stock will closely track the progress of the monsoon in the near term Rallis India reported muted revenues of Rs 4.5bn (-1% YoY) in 1QFY18, as the domestic pesticides business was impacted by destocking ahead of GST implementation, and down-trading by farmers. However, the seeds business (Metahelix) reported strong revenue growth of 13% YoY at Rs 2.3bn, and PBT at Rs 570mn (+27% YoY). EBITDA declined to Rs 694mn (-8% YoY), led by higher employee costs and other expenses. Consequently, APAT was at Rs 454mn (-5% YoY).

Rallis India reported a muted Q1FY18 performance. The agrochemical segment reported 5.0% de-growth in sales while seed business i.e. Metahelix reported a marginal 4.5% growth YoY Total consolidated revenues in Q1FY18 came in at | 445.5 crore, flat YoY. Standalone revenues in Q1FY18 were at | 247 crore, down 5.0% YoY. The same can be attributed to high channel inventory, destocking ahead of GST and down trading by domestic farmers Revenues of subsidiaries (Metahelix & Zero Waste Agro) in Q1FY18 were at | 198.0 crore, up 4.5% YoY. EBITDA margins on the...

Rallis will invest Rs 0.5 bn in its CSM business, which may generate Rs 0.5 bn revenue(vs. street expected capex/revenue at Rs 2-3 bn)

Rallis India reported weak 4Q results, owing to poor north-east rains in south India and a lower pest attacks. Revenues were flat at Rs 3.5bn (-1% YoY). Lower EBITDA margin of 12% (-86bps) led to EBITDA of Rs 416mn (-8%) and APAT of Rs 311mn (-10%).