Rallis India a buy: Geojit BNP Paribas Financial Services

Gaurang Shah, Asst VP, Geojit BNP Paribas Financial Services, in a chat with ET Now talks about Rallis India.

Rallis is in some areas which have been very popular like seeds, agrochemicals, fertilisers, contract services to people like Bayer, Syngenta, Cheminova. Do you think there is an uptick of a revaluation of this entire group because that is where the private equity money is moving in?

When we initially came out of the buy report, Rallis was hovering around 650-700. Post that, our initial targets were around about 1200. Of course this was before we saw the performance of Rallis and the newer contracts that it has entered into with the MNC companies. Later on, we also heard that the project at Dahej where they are planning a capex and could possibly be on stream by July 2010.

Given the fact and of course with the business model, the market share, the presence of its products and the focus as far as the agri business goes going forward and if monsoon is going to be somewhere around 98% or about that, definitely there is going to be tremendous demand. So from that point of view, we have again reiterated a buy over there and we have upgraded the stock with a price target of around about 17.52. This could be around about 6 months to 12 months.