The shares of Rallis India fell 6.80% to reach an intraday low of ₹ 228.80 apiece on the National Stock Exchange (NSE) after the company declared its results for the October to December quarter (Q3FY23).
Rallis India shares were trading at ₹ 231.75, down 5.58% at 12:37 PM on Thursday. 1342570 shares changed hands on the NSE.
The Tata group company reported a 43% drop in its net profit for the December quarter, at ₹ 22.55 crore against the net profit of ₹ 39.55 crore in the corresponding period a year ago. The company’s revenue from operations stood at ₹ 630.39 crore in the December quarter compared to ₹ 628.08 crores in the same period of the previous fiscal.
“Our third quarter revenues witnessed 0.3 per cent growth over last year. This has been in the backdrop of erratic rainfall in the domestic market and headwinds in international business. During the quarter, our domestic crop protection business grew by 7.7 per cent, crop nutrition business by 22 per cent,” said Sanjiv Lal, CEO- Rallis India.
He added that the company’s exports declined by 6.5% primarily due to inventory build-up at the customer end. Further, he said that the company’s long-term focus continues to be investing in growth through new product introduction, expanding its retail footprint, and investing in flexible multipurpose manufacturing plants for its new product pipeline.
Rallis India manufactures agrochemicals and is present across the value chain of agriculture inputs – from seeds to organic plant growth nutrients. In addition, it is in the business of contract manufacturing for global corporations.
The company has a market capitalization of ₹ 4775 crores and is a small-cap company. Its shares are trading at a price-to-earnings ratio of 29.16, which is significantly higher than the industry P/E of 13.71. Therefore the stock might be overvalued. It has a return on equity of 9.99% and a debt-to-equity ratio of 0.10.
Written by Simran Bafna
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
