Buy Rallis India - Prabhudas Lilladher

Mr. Vikram Kasat, Head- Advisory and Western Region at Prabhudas Lilladher

Buy Rallis CMP 267 SL 245 (Closing Basis) Target 350

Why we like the company from the current levels:

- Metribuzin prices have bottomed out and is witnessing gradual improvement; with volumes also picking up should support growth going forward; while favorable base impact likely to be the catalyst in the subsequent quarters.

- Fully sold out plants after enhanced capacities in other molecules for exports

- With the global trade opening up post COVID, we expect CRAMS business to support growth going forward (at-least from 2HFY23 onwards + subdued base impact).

- Re-alignment in trade policies in the recent years coupled with enhanced focus on market share gains in the domestic business is likely to reap benefits.

- Favorable base impact is likely to be seen in the subsequent quarters (1HFY23E); possibility of consensus upgrade going forward.

- Valuations remain on the comfortable side; At the CMP, the stock trades at 17x FY24E EPS.

Shares of Rallis India Limited was last trading in BSE at Rs. 277.70 as compared to the previous close of Rs. 268.85. The total number of shares traded during the day was 151169 in over 5803 trades.

The stock hit an intraday high of Rs. 280.30 and intraday low of 270.10. The net turnover during the day was Rs. 41714290.00.

Source : Election Commission of India

Keywords

RallisIndia INE613A01020 PrabhudasLilladher Buy