Views on Rallis India Limited 1QFY2017 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking) on Rallis India Limited 1QFY2017 Results:

"For 1QFY2017, the sales of the company came in at INR 445cr V/s INR 415cr in 1QFY2016, a YoY growth of 7.2%. The onset of monsoon was delayed and the progress in June was sluggish leaving 11% deficit by end of the month. This impacted progress of the season which was accentuated by sharp drop in cotton planting. Consequently demand and placement was muted during 1QFY2017 which has picked up in July. On the operating front, the Gross margins came in at 45.4% V/s 44.8% in 1QFY2016, which along with the sales growth, aided the OPM come at 15.8% V/s 13.5% in 1QFY2016. This along with other income, which came in at INR 7cr V/s INR 5cr in 1QFY2016, lead the Adj. Net profit come in at INR 49cr V/s INR 42cr; a YoY growth of 16.1%. The reported net profit came in at INR 174cr V/s INR 42cr, on back of the other income of INR 158cr (comprising profit on assignment of leasehold rights to a plot of land in the MIDC area, Turbhe, Navi Mumbai. The profit is net of costs including a premium levied under the repealed Urban Land (ceiling and Regulation) Act 1976, which has been paid under protest. We maintain our NEUTRAL view on the stock."

Shares of RALLIS INDIA LTD. was last trading in BSE at Rs.224.15 as compared to the previous close of Rs. 220.2. The total number of shares traded during the day was 83028 in over 1617 trades.

The stock hit an intraday high of Rs. 225.9 and intraday low of 218.85. The net turnover during the day was Rs. 18488057.

Source : Equity Bulls

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