Add Rallis India, target Rs 290: Kotak Institutional Equities

Kotak Institutional Equities has an add call on Rallis India with a target price of Rs 290.

The current market price of Rallis India is Rs 230.

Time period given by the brokerage is Long Term when Rallis India price can reach the defined target.


"Rallis reported 11 per cent yoy decline in EBITDA despite strong volume-led revenue growth of 18 per cent reflecting a sharp rise in the cost of active ingredients procured from China. The recent price hikes taken by the company may help in restoring margins back to normalcy in the coming quarters. We expect the company to deliver strong 22 per cent CAGR in EPS over FY2017-20E driven by (1) robust growth in the domestic and international formulation businesses and (2) expected improvement in performance of Metahelix. Retain ADD with a revised Target Price of Rs 290," Kotak Institutional Equities said in a report.