CMP: 305
Total income from operations 661 Cr
623 Cr (6.09%) YoY | 346 Cr (91.02%) QoQ
Year ending revenue: 2,252 Cr Vs. 1,984 Cr (13.51%)
Net Profit of 91.9 Cr
60.2 Cr (53.87%) YoY 0.68 Cr (13414.73%) QoQ
Year ending Net profit: 184 Cr Vs. 155 Cr (18.71%)
EPS (in Rs.) 4.72
3.11 YoY | 0.03 QoQ
Year ending EPS: 9.51 Vs. 9.74
View: Strong result and posted good number. YoY revenue increased but
profit significantly improved in YoY and QoQ.
Business Updates & Highlights:
Q1FY21 EBITDA is around INR 128.3 Cr Vs. 94.7 Cr in Q1FY20 therefore up by
36.1% in YoY. EBITDA margin in Q1FY21 was 19.3% Vs. 15.2% in Q1FY20
therefore EBITDA margin improved by 400 bps.
Registered 13.5% revenue growth during Q1 for domestic crop care business
on account of robust demand and a 3% revenue growth in seeds sales.
Successful launch of 4 new hybrids : Maize (2), Bajra (1), Chilli (1)
Expansion Capex program, generally on course, although delayed due to Covid
lockdown effect. Metribuzin 500MTPA commissioned in July, although
production is likely to be low due to market softness. New Formulation
plant is expected to be commissioned in phases in Dec 2020 and Mar 2021
Financial
ROE and ROCE is around 13% and 16% respectively and book value per share is
around INR 72 and share is currently trading at 4.3x of its book value.
The company is currently trading at annualized PE of around 24 which is good as
per Industry benchmark. Promoter holding is around 50.1% in the company
which is strong and stable. FIIs and mutual fund hold around 4.3% and 19.4%
in the company which is increased by the mutual fund in this quarter and
slightly decreased by FIIs.
Position: Share strong support price is INR 282. Short term outlook is
good. Long term investors should continue with the company with a target price
of INR 360.
Share View: Share price high 310 (52 week) and now 305. Rallis India Ltd.
is a subsidiary of Tata Chemicals and a part of Tata Group. It is one of
India's leading Agro Sciences Companies, with more than 160 years of
experience of servicing Rural Markets and with the most comprehensive
portfolio of products/solutions for Indian farmers
Opportunities: Collection focused initiatives have supported strong
performance on Collections in both Seeds and Crop Care - highest ever in
Q1. Strong focus on ensuring the availability of products at the retail end -
Raw material sourcing, production, logistic, dependence on multiple
vendors/service providers for packing/processing/production. Company has
grown very well and given strong share recovery from low of 150 in March
2020 to a high of 310 more than double. Company is also paying a dividend of
INR 2.5 per share which is around 1.5% of CMP.
Risk: Company has delivered in poor growth in last 5 years and which was
around 5.3% only. Topline growth is single digit continuously and in this
quarter also.
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