Shares of Rallis India jumped over 6 per cent in Thursday’s trade after the Tata Group firm reported better-than-expected September quarter results.
“Rallis’ September quarter results were above than our/consensus expectations, primarily led by superior revenue growth across all segments, said Himanshu Binani, Research Analyst at Prabhudas Lilladher, as he suggested a target price of Rs 250 on the stock.
On Wednesday, the Tata Group firm reported a 25.88 per cent jump in net profit at Rs 71.05 crore for the September quarter compared with Rs 56.44 crore in the same quarter last year. Revenue from operations climbed 30.69 per cent to Rs 951.18 crore compared with Rs 727.80 crore in the corresponding quarter last year.
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Following the development, the stock rose 6.46 per cent to hit a high of Rs 230.50 on BSE.
“Gross margins contraction was led by high-cost inventory coupled with pricing pressure in the exports markets. Post H1FY23 performance, we believe that there would be some upward revision in our revenues estimates for FY23. However, due to the continued pressure on margins, there would not be any meaningful earnings upgrade. We would be re-visiting our estimates post the concall,” Binani of Prabhudas Lilladher said.
The stock is currently trading at 23 times FY23 and 18 times FY24 earnings per share.