Rallis India Limited jumped 6.5 percent on Thursday, October 20, after the company reported a 25.88 percent growth in profit after tax in the quarter ended September 2022.
During Thursday’s trade, the stock opened at a price of Rs. 221 per share against the previous close of 216.40 and touched an intraday high and low of Rs. 230.65 and Rs. 218.10 respectively. It was trading at Rs. 228 at 11:30 am. on the NSE.
The stock touched a 52-week-high of Rs. 299.05 on January 18, 2022 and a 52-week-low of Rs. 182.50 on June 20, 2022, indicating that at the current level, the stock is trading at 25.3 percent above its 52-week low and 23.4 percent below its 52 week high.
On Wednesday, October 20, Rallis India reported a 25.88 per cent growth in profit after tax at ₹71.05 crore in the September ending quarter compared to the year-ago period. Its profit after tax stood at ₹56.44 crore during the corresponding period of the previous fiscal.
The company's revenue from operations rose 30.69 per cent to ₹951.18 crore in the second quarter of the current financial year. In the year-ago period, it stood at ₹727.80 crore, the company said in the official filing.
"Within our Crop Care, exports grew by 67 per cent and the domestic formulation business grew by 13 per cent. Despite the uneven distribution of monsoon, domestic business leveraged our geographic and portfolio diversity to achieve growth," Rallis India Managing Director and CEO Sanjiv Lal stated.
Domestic brokerage house Prabhudas Lilladher has given a ‘ BUY’ call on Rallis India with a target price of ₹250 per share, reported ET.
Post H1FY23 performance, the brokerage believes that there would be some upward revision in revenues estimates for FY23; however due to the continued pressure on margins there would not be any meaningful earnings upgrade.
Rallis India Ltd., established in 1948, is a mid-cap company with a market capitalisation of Rs. 4208.31 crore that operates in the pesticides and agrochemicals industry. The company is engaged primarily in the business of manufacturing and marketing of agri-inputs.
The agri-inputs consists of crop protection products, plant growth nutrients, organic compost and processing of seeds and provides agri-solutions under its Rallis Samrudh Krishi (RSK) initiative. Its business areas include domestic crop protection, international business, contract manufacturing, seeds, plant growth nutrients and agri-services.
According to a MintGenie poll, an average of 16 analysts have a ‘ buy’ call on the stock.