Rallis India - Fund Managers Meet Update - Emkay

Reco: HOLD
CMP: Rs 123
Target Price: Rs 120

Domestic growth under pressure, maintain HOLD

Key highlights from Rallis Fund managers' meet -

- Domestic business was negatively impacted in Q3 due to erratic nature of North Eastern monsoon. Agri-input consumption was also impacted due to pressure on farmer profitability.

- FX loss of Rs 82mn related to the MTM loss on exchange rate fluctuations on import of raw materials.

- Dahej plant remains on track and achieved 75% capacity utilization during Q3. While growth in Q3 was led by exports, domestic business is under pressure.

- Management sounded cautious on rabi outlook and future expectations are built from a favorable monsoon. We maintain HOLD with target price of Rs 120.

Source : Equity Bulls

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