A chemical stock has garnered attention after SBI Mutual Fund increased its stake by purchasing 14,92,759 shares. This strategic move has sparked investor interest, signaling confidence in the company’s potential and growth prospects within the chemical sector.
Share Price
The shares of Rallis India Limited are currently trading at Rs. 242.39 down by 0.42% from its previous close of Rs. 243.41 as of February 06, 2025. The stock also touched an intraday low of Rs. 241.51.
Recent Updates
DII Increase Stake
SBI Mutual Fund has raised its stake in Rallis India by acquiring 1,492,759 shares at an average price of Rs. 240 per share from the open market. This purchase has increased its holding to 9.1667%, up from the previous stake of 8.3991%. The total value of the transaction amounts to Rs. 35.823 crores.
This strategic move reflects SBI Mutual Fund’s confidence in Rallis India’s growth prospects and its potential to deliver long-term value. The increased stake could also position the mutual fund to benefit from any future upside in the company’s performance.
Q3 Performance
The agri-inputs company reported a significant decline in its Q3 FY25 performance, with net profit falling over 54% year-on-year (YoY) to Rs 11 crore, down from Rs 24 crore in Q3 FY24. Revenue from operations also dropped by 12.7% YoY, reaching Rs 522 crore. The company’s EBITDA saw a steep decline of 27.9% YoY, amounting to Rs 44 crore.
Consequently, the EBITDA margin contracted to 8.4%, compared to 10.2% in the same quarter last year. This decline in profit and margins reflects challenges in the company’s core business, indicating pressures on both revenue generation and cost management.
About the Company
Rallis India, a key player in the agrochemical sector, continues to benefit from strong managerial and operational support from its parent company, TATA Chemicals Ltd (TCL). TCL, which specializes in the production of soda ash, sodium bicarbonate, caustic soda, and bromides, views Rallis as strategically important as it is the only group company focused on the agrochemical space.
In July 2023, TCL increased its stake in Rallis India to 55.05%, up from 50.06%, further emphasizing the company’s critical role within the Tata Group.
Written By: Dipangshu Kundu
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