Get App
Moneycontrol

Co-Partners

Associate Partners

Last Updated : May 03, 2019 01:00 PM IST | Source: Moneycontrol.com

Hold Rallis India; target of Rs 155: ICICI Direct

ICICI Direct recommended hold rating on Rallis India with a target price of Rs 155 in its research report dated May 02, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Rallis India


Rallis reported a subdued financial performance with revenue down 8.5% YoY to Rs 339.7 crore, primarily due to the poor show from the standalone business (down 9% YoY, ~94% of consolidated revenue). Revenues from the standalone business were impacted largely due to muted sales growth from domestic market but decent growth from international market arrested decline, to some extent. On the other hand, Metahelix reported stable growth of 2.3% YoY to Rs 22.5 crore. Adjusting one-time charge of Rs 7.2 crore towards retirement benefits in employee expenses and Rs 5 crore towards contribution to electoral fund, standalone EBITDA was at Rs 31 crore (down 27.4% YoY) while Metahelix registered operational loss of Rs 13 crore against a loss of Rs 7.9 crore in Q4FY18. Higher other income (Rs 11 crore vs. Rs 1.6 crore in Q4FY18) helped the company to maintain its bottomline performance. Adjusted consolidated PAT was at Rs 13.6 crore (-31.3% YoY).


Outlook


We lowered our P/E multiple to 15x on FY21E (implied EV/EBITDA of ~8.5x) due to inventory built up in the system and poor sales outlook from domestic market. We arrived a target price of Rs 155 and assigned HOLD rating on the stock.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Get Lok Sabha 2019 Live Election Results, constituency-wise tally, news, views and analysis
Follow our Lok Sabha Election Result Live Blog here.
First Published on May 3, 2019 01:00 pm
More From
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant