Please Share:: 
India Equity Research Reports, IPO and Stock News
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
RECO : BUY TP : Rs197
Investment Rationale
§ Rallis is the 2nd largest domestic generic player in extremely regulated market of crop protection and enjoys the
benefit of its well diversified distribution network and age old brand of Tata
§ Its multi pronged strategy to boost revenues through product restructuring, new product launches and focus on
exploring export opportunities and entry into seeds segment along with new initiatives taken like trading of pulses
should help Rallis to post strong revenue growth of 25-30% p.a.
§ Well positioned to tap opportunities in fast growing CRAMS space through its new facility at Dahej. Rallis has
also contracted with leading global players to provide its services under toll manufacturing agreement
§ Growing share of high value branded products, cost reduction initiatives taken by the company is expected to
drive its EBITDA margins by 350 bps to 20.0% by FY13E (over FY10)
Valuations
§ At EPS CAGR of 30% (FY10-13E), Rallis offers PEG of 0.7. EBITDA margin expansion of 350 bps over FY10-
13E to improve RoE by 440 bps to 30.5% by FY13E. With a healthy balance sheet (minimal net debt / equity of
0.2) in FY11, Rallis offers attractive investment opportunity. The company also has ‘hidden assets’ like excess
land bank and a minority stake in Advinus, one of the finest pharma research organizations in India
Click for full list and other company details below
No comments:
Post a Comment