Rallis India Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Rallis India (Rallis) reported a muted performance in a seasonally weak quarter i.e. Q4FY17. Sales in the standalone business (agrochemical) were flat at | 328 crore largely tracking muted NE monsoon in southern India and consequent drop in paddy acreages In Q4FY17, consolidated revenues came in at | 348.1 crore, down 1.2% YoY. Revenues of subsidiaries (Metahelix & Zero Waste Agro) for the quarter were at | 20 crore, down 19.6% YoY EBITDA for the quarter came in at | 41.6 crore with corresponding...

ICICI Securities Ltd | Retail Equity Research Rallis India (Rallis) is a major agri input player domestically with a presence across the agri value chain viz. seeds & agro-chemicals In the agro-chemical space, the company has ~7% market share domestically while in the seeds segment through its subsidiary i.e. Metahelix, it commands a market share of ~3% With incremental steps being implemented by various state governments to augment farm income amid increasing streamlining...

For 3QFY2017, Rallis India (Rallis) reported a yoy growth of 6.5% in sales to326cr (v/s 306cr in 3QFY2016). On the operating front, the OPM came in at 11.4% (v/s 11.0% in 3QFY2016). Aided by sales growth, a good operating performance and surge in other income (8cr v/s 3cr in 3QFY2016), the Adjusted Net profit grew by 30.2% yoy to 25c..

Rallis India reported healthy results led by pesticide segment. Revenues were at Rs 3.3bn ( 7% YoY).EBITDA margin grew to 12.8% ( 105bps) owing to better product mix and lower RM cost. EBITDA was Rs 424mn ( 17%) and APAT was Rs 254mn ( 21%).

ICICI Securities Ltd | Retail Equity Research Rallis India (Rallis) reported a steady Q3FY17 performance. Sales in the standalone business (agro-chemical) were up 8.3% YoY largely defying the fears of a demand hit due to demonetisation In Q3FY17, total consolidated revenues came in at | 331.4 crore, up 7.2% YoY while standalone revenues were at | 309.0 crore. Revenues of subsidiaries (Metahelix & Zero Waste Agro) for the quarter were at | 22.4 crore, down 5.3% YoY...

ICICI Securities Ltd | Retail Equity Research The stock price of Rallis has witnessed a decent correction following muted market sentiments post the demonetisation move in the recent past. We believe this correction offers a good buying opportunity in Rallis for the long term investment horizon. Hence, we upgrade the stock from HOLD to BUY. This is despite the general perception of adverse hit on farm income due to demonetisation and, consequent, muted demand for agri inputs. We would like to highlight that a majority of agri inputs...

For 2QFY2017, Rallis India (Rallis) reported a yoy growth of 20.8% in sales to Rs540cr (vs. Rs447cr in 2QFY2016). On the operating front, the gross margin came in at 38.9% (vs. 52.4% in 2QFY2016), which along with sales growth aided the OPM to come in at 17.7% (V/s 19.2% in 2QFY2016). Aided by sales growth, a good operating performance an..

Rallis India reported strong 2QFY17 results led by normal monsoon/higher sowing in India and pickup in Brazilian market. Revenues grew by 22% YoY to Rs 5.5bn. EBITDA margin declined a bit to 19.0% (-63bps) owing to losses in seeds business. EBITDA was Rs 1.0bn ( 18%) and APAT was Rs 667mn ( 28%).

ICICI Securities Ltd | Retail Equity Research Rallis India reported a healthy Q2FY17 performance. The standalone business (agro-chemical) in a seasonally important quarter witnessed robust growth of 17.8% YoY. Standalone sales were at | 495 crore The subsidiary business (Metahelix), on the other hand, witnessed...

Rallis India’s 1QFY17 revenues grew 7% YoY to Rs 4.7bn led by the seeds segment. Pesticides sales were flat owing to delayed rains and lower sowing in 1Q. EBITDA margin grew to 16.1% (+248bps) led by lower other expenses. Subsequently, EBITDA was Rs 752mn (+27%) and APAT was Rs 553mn (+56%). RPAT was Rs 1.7bn including sale of land worth Rs 1.6bn.Things seem to be falling in place in FY17 — a normal monsoon, improvement in agri-commodity prices, and strengthening of LatAm currencies. Additionally, Rallis has specific triggers such as (1) Launches of new products, (2) Custom synthesis (CSM) revenues likely to begin, and (3) Growth in the seeds business. The stock has rallied ~14% in the past three months, but there is still some steam left. Rallis is a direct beneficiary of the Indian agriculture growth story. Lower penetration of agrochemicals and its cost advantage underpin its long-term growth. A strong brand, complete portfolio, extensive distribution network and a strong balance sheet will help it gain market share. HDFC Securities Maintain BUY with a TP of Rs 250/sh (20x FY18E EPS).

Trendlyne has 16 reports on RALLIS updated in the last year from 6 brokers with an average target of Rs 220. Brokers have a rating for RALLIS with 1 downgrade,1 price downgrade,3 price upgrades in past 6 months and 2 downgrades,6 price downgrades in past 1 Year.