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.
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 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
investor should continue with the company with 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 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 high of 310 more than double. Company is also paying
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.
Disclaimer: The
information provided herein is based on publicly available information and
other sources believed to be reliable, but involve uncertainties that could
cause actual events to differ materially from those expressed or implied in
such statements. The document is given for general and information purpose and
is neither an investment advice nor an offer to sell nor a solicitation. While
due care has been exercised while preparing this document, we do not warrant
the completeness or accuracy of the information. We will not accept any
liability arising from the use of this material. The recipient of this material
should rely on their investigations and take their own professional advice.
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