Wednesday, December 1, 2010

Rallis India Limited - Accumulate | Target 1633

Rallis India Limited or “Rallis” is a Tata group company and is mainly engaged in manufacturing and distribution of Agri Input products consisting of Pesticides, Plant growth nutrients and Seeds.

At the Trailing market price of Rs 1382, Rallis trading at over 25X its FY 10 earnings. Though the company is trading at higher multiples compared to its peers, its premium valuations are backed by its state of art manufacturing facilities, strong R&D, more than 4 decades of experience in fertilizers and pesticides and the fact that Rallis is one of the largest and the most diversified player in the Agri Inputs space in India. We recommend an “Accumulate” rating on the stock with a Target of Rs 1633 in Twelve months.

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