Hold Rallis India - Result Update - Emkay

Reco: HOLD Rallis India
CMP: Rs 127
Target Price: Rs 120

No positive surprise, Maintain HOLD

Results marginally above est with consol APAT Rs 310 mn (-8%yoy) vs our est of Rs 280 mn and consensus of 342 mn. Sales Rs 3.2 bn (+20%yoy) is broadly in line with est

Reported profit of Rs 77 mn is adjusted for provision of Rs 242 mn for impairment of assets of Turbhe plant and Rs 82 mn forex loss (we are yet to get clarity on this) in Q3FY12

Stand alone revenue growth of14% is lowest in last 7 quarters. Though seed business contributed revenues of Rs 151 mn it reported losses of Rs 24 mn

Foreseeing the pressure on revenue growth and margins in near future, we maintain our HOLD rating on the stock with price target of Rs 120.

Source : Equity Bulls

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