Buy Rallis India, target price Rs 365: ICICI Direct

ICICI Direct has buy call on Rallis India with a target price of Rs 365. The current market price of Rallis India Ltd. is Rs 312.55. Time period given by analyst is two weeks when Rallis India Ltd. price can reach defined target.
Rallis India Ltd., incorporated in the year 1948, is a Mid Cap company (having a market cap of Rs 6098.54 Crore) operating in Pesticides/Agro Chemicals sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 747.50 Crore, up 55.97 % from last quarter Total Income of Rs 479.27 Crore and up 10.83 % from last year same quarter Total Income of Rs 674.45 Crore. Company reported net profit after tax of Rs 82.34 Crore in latest quarter.


Investment Rationale
Chemicals stocks continue to remain in strong up trend and are seen resuming fresh up move after one month of breather. The share price of Rallies India has witnessed a strong rebound after a higher base formation above the 50 days EMA and the previous major breakout area signals resilience and offers fresh entry opportunity. The brokerage expects the stock to maintain positive bias and head towards Rs 370 levels being the 123.6% external retracement of its previous decline (Rs 362-313) placed around Rs 370 levels.

Promoter/FII Holdings
Promoters held 50.1 per cent stake in the company as of June 30, 2020, while FIIs held 4.3 per cent, DIIs 19.4 per cent and public and others 26.1 per cent.