ICICI Direct has given Reduce recommendation for Rallis India with a target price of Rs. 235 in its research report issued on Apr 22, 2022

ICICI Direct’s research report on Rallis India

Rallis India is a leading agrochemical company with a presence across agri input value chain and a strong, healthy pipeline of sustainable products. The company has a diversified portfolio, supported by a strong channel network of more than 6,700 dealers and 79,000 retailers • In terms of revenue contribution, domestic crop care constitutes 54% of overall revenue followed by international crop care of 30% and the rest from the seeds business.

Outlook

We revise the rating downward from HOLD to RE.DUCE on the back of input cost inflation pressure. We value Rallis India at 19x P/E FY24E EPS to arrive at a revised target price of Rs 235 per share (earlier Rs 305 per share).

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