Buy Rallis India; target of Rs 185: SMC Global

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Buy Rallis India; target of Rs 185: SMC Global

SMC Global is bullish on Rallis India and has recommended buy rating on the stock with a target of Rs 185 in its September 19, 2011 research report.

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RELATED NEWS Buy Tata Steel; target of Rs 629: PINC Research Buy Phoenix Mills; target of Rs 265: PINC Research Buy Bharti Airtel; target of Rs 417.20: Microsec ALSO READ See previous views by SMC Global See what other Experts & Brokerages are saying about Rallis India See messages about Rallis India Rallis India BSE | NSE 31/05/12 Are Mutual Funds betting on Rallis India?

SMC Global is bullish on Rallis India and has recommended buy rating on the stock with a target of Rs 185 in its September 19, 2011 research report.

"Rallis India has recently commissioned its Dahej unit at a capex of Rs150 crore operating with an annual capacity of 5,000 tonne. The plant will primarily cater to export markets, increasing the share of international business in the overall revenues to nearly 35%. This new capacity will bring an average of 100 crore of revenue every year for the next five years. Company has several new products under development and has plans to improve existing products in order to cut their costs and become competitive in the market."

"The company has recently commissioned its Dahej unit at a capex of Rs150 crore operating with an annual capacity of 5,000 tonne. The plant will primarily cater to export markets, increasing the share of international business in the overall revenues to nearly 35%. This new capacity will bring an average of 100 crore of revenue every year for the next five years. The company entered into the seeds business - another key growth area essential for boosting the farm productivity - through an acquisition. The significance of agriculture is rising the world over as growing population and changing demographics are raising demand for food grains, while the limited availability of land is a key constraint. In this scenario, demand for the crop protection industry is growing strong to improve farm productivity. The trend, which visibly benefited Rallis in the past few years, is set to continue in foreseeable future as well. High growth in sales was aided by steady progress of July monsoon which enabled improvement of sowing and crop acreage in cotton, groundnut and pulses meanwhile domestic business performance was further enhanced by successful product launches in both the crop protection and seeds space. International Business recorded improved performance reflecting positive global trends."

"Overall, the bias in prices is and the Intermediate term prices are trending. The stock closed at 169.75 on 16th September 2011. It made a 52 week low 116.67 and 52 week high of Rs179. Buy around 171 with a closing below stop loss of 164 levels for the target of 185," says SMC Global research report.   

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To read the full report click on the attachment