In the past three trading days, the stock has rallied 12 per cent, as compared to 2.3 per cent decline in the S&P BSE Sensex. It is trading close to its 52-week high level of Rs 256, hit on February 20, 2020. With today’s gain, the stock has zoomed 83 per cent from its 52-week low of Rs 127, touched on March 23, 2020.
Rallis is a major player in the crop protection sector with a strong presence in all three segments of the pesticide industry (insecticides, fungicides, and herbicides) in India and abroad.
For the October- December quarter (Q3FY20), Tata Group Company had delivered an all-round performance on the back of a 35 per cent year on year (yoy) growth in the domestic business.
The company’s profit before tax had more-than-doubled at Rs 48 crore in Q3FY20. Its recorded 28 per cent yoy jumped in its consolidated revenues of Rs 534 crore during the quarter. Earnings before interest, tax, depreciation, and amortisation (EBITDA) margin expanded by 380 basis points to 10.4 per cent.
For Q4FY20, Kotak Institutional Equities expects Rallis India to post 12 per cent YoY growth in revenues amid continue growth from a robust Rabi season, which will be partly offset by disruption in logistics and shutdown of operations in March-end 2020. The brokerage firm expects the company's EBITDA margins to decline by 40 bps YoY to 5.2 per cent due to modestly higher raw material cost amid higher prices for certain inputs.
Meanwhile, ace investor Rakesh Radheshyam Jhunjhunwala acquired an additional 275,000 shares of Rallis India during Q4FY20, taking his stake in the company to almost 10 per cent mark. Jhunjhunwala held 9.93 per cent stake in the company in March quarter as against 9.79 per cent in the previous quarter, the shareholding pattern data shows.