Rallis India
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Rallis India is strategically navigating a challenging agribusiness landscape marked by erratic monsoons and global export volatility. Management's focus on a volume-led growth model, particularly in high-growth areas like DSR-related herbicides and contract manufacturing services (CSM), is expected to drive revenue stability and margin expansion. The company's commitment to product mix optimization and cost efficiencies underpins Vista's forecast of improving profitability and a stable revenue outlook. Despite facing near-term headwinds in the cotton seed segment and geopolitical risks affecting raw material costs, Rallis is well-positioned to leverage strong rural demand and a robust pipeline of new product launches. The agribusiness sector's improving pricing power and government support for fertilizers further bolster the company's long-term growth prospects. Over the next 12-24 months, key opportunities include expanding the CSM business and enhancing digital engagement with farmers, while watchpoints include managing channel inventory and navigating regulatory hurdles. Vista's expected upside of 38.55% reflects confidence in Rallis's ability to adapt and thrive in a complex environment, with a target price of approximately ₹298
Why We Like This Stock
- Management's pivot towards high-growth areas like DSR-related herbicides and CSM is expected to enhance revenue stability
- Improving pricing power in the agribusiness sector supports margin expansion and profitability
- Strong rural demand and a robust pipeline of new product launches position Rallis for long-term growth
Things To Watch Out For
- Near-term headwinds in the cotton seed segment may impact revenue growth
- Geopolitical risks could affect raw material costs and supply chain stability
- Regulatory hurdles in product registrations may pose challenges to market expansion
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,648 | 2,663 | 2,897 | 3,081 | 3,161 |
| Profit Before Tax (Cr.) | 196 | 186 | 276 | 382 | 362 |
| PBT Margin | 7.4% | 7.0% | 953.2% | 12.4% | 11.5% |
| Net Profit (Cr.) | 136 | 129 | 189 | 260 | 246 |
| Earnings Per Share | 7.2 | 6.8 | 10.0 | 13.7 | 12.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 265 | 28-Jul-2026 |
| Kotak Securities | ► Add | 260 | 22-Jul-2026 |
Company Overview
Show Company Profile
Rallis India Limited manufactures and markets agri input products in India and internationally. It offers crop protection products, including insecticides, herbicides, fungicides, and bio pesticide; organic and micronutrient fertilizers, and plant growth nutrients; seeds, such as maize, watermelon, cauliflower, cabbage, bottle gourd, cucumber, bitter gourd, chilli, okra, tomato, millet, paddy, and cotton; and animal nutrition products. The company also provides household products, such as Termex, an insecticide for termite control; Sentry 10 WP, a synthetic pyrethroid insecticide; and Ralligel plus, a chemical for cockroach control. In addition, it offers contract manufacturing services for crop protection chemicals, specialty chemicals, polymers, and intermediates. Further, the company sells soil and plant health solutions, including bio-fertilizers, bio-stimulants, micro-nutrients, organic fertilizers, water soluble fertilizers, and bio-pesticides. It offers its products through a network of distributors, dealers, and retailers. The company was incorporated in 1948 and is based in Mumbai, India. Rallis India Limited is a subsidiary of Tata Chemicals Limited.