Agrochemical companies such as Sumitomo, Dhanuka and Rallis have, of late, been impacted by a surge in raw material cost, along with the challenge of securing supply. The commentary from FMCG players about subdued rural demand has also not helped
Tata Chemicals' plan for expanding the share of its speciality products business to 50 percent of sales could be a positive and help in improving margins
Moneycontrol’s Sakshi Batra, does 3-Point Analysis to understand the key earnings fineprint and the outlook on the company.
The stable quarterly numbers came on the back of a healthy top line growth, positive farm sentiment and new product launches
Of the agrochemical stocks, we find PI Industries and Insecticides India on track for growth and would recommend to keep these on radar and accumulate for long term portfolio in a staggered manner.
Earnings were impacted due to certain one off items which were taken on account of delay in receipts on sales.
A successful deployment of capital in high margin businesses can improve earnings and trigger a re-rating for the stock
Commercialisation of new molecules is also something to look out for in the long term
The government is proposing to cut the price of the BT cotton seeds (Bollgard II) from Rs 800 to Rs 740 per packet (450gm packets). While the move would provide some respite to cotton farmers, it stands to eat away margins of seed companies.
With completion of the restructuring, the company is now positioned to focus on expansion of core segments amid rapid growth
The focused budgetary measures directed at rural India aim to realize the 2022 goal and give the desired push in an election year –thereby killing two birds in one shot.
Continued improvement in revenue & volumes and benefits from parent company’s restructuring make Rallis India a quality stock to accumulate gradually.
We expect stock specific action to continue going forward as we have entered into the quarterly earning seasons.
Here are a few top buzzing midcap stocks picked by CNBC-TV18's analysts in trade today -- BHEL, M&M, Rallis, Biocon, Indiabulls Housing Finance, Marksans Pharma, MCX, Alembic Pharma, Delta Corp, and Pincon Spirits.
Dilip Bhat of Prabhudas Lilladher is of the view that one may look at RPP Infra Projects, VRL Logistics, Rallis India and Capital First.
Hari says the big surge in deep cyclical stocks is yet to be seen even as the market has been making new highs.
Parag Thakkar, Head of Sales at HDFC Securities suggests buying Maruti Suzuki, Mahindra and Mahindra (M&M), Rallis India and Bayer CropScience with a long term view.
"IT seems to have regained flavour," said Sharmila Joshi, Head of Equity of Peerless Securities, in an interview with CNBC-TV18. She expects private sector banks to be in focus next week because of expiry of F&O contracts. She sees Tata Chemicals climbing back to the Rs.325-350 band.
Salt-to-software conglomerate Tata group has suffered a huge erosion of over Rs 25,000 crore in its market valuation within a week, as shares of its companies lost ground amid a sharp sell off in the market.
In an interview to CNBC-TV18, Veeramani Shankar, MD & CEO, Rallis said that depreciation in rupee and cost pressures were responsible for the shrinkage in the margins.