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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Rallis India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:40 pm

Market Cap 6,189 Cr.
Current Price 318
High / Low379/225
Stock P/E41.5
Book Value 98.9
Dividend Yield0.79 %
ROCE11.2 %
ROE8.30 %
Face Value 1.00
PEG Ratio-9.34

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Rallis India Ltd

Competitors of Rallis India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Epigral Ltd 8,360 Cr. 1,9472,408/88628.6 3370.26 %17.5 %16.9 % 10.0
Dharmaj Crop Guard Ltd 970 Cr. 287390/19724.0 1170.00 %14.5 %13.2 % 10.0
Bhaskar Agrochemicals Ltd 36.6 Cr. 70.3122/46.118.6 29.20.00 %14.7 %13.4 % 10.0
Bhagiradha Chemicals & Industries Ltd 4,065 Cr. 328448/117151 51.00.03 %9.69 %6.27 % 1.00
Best Agrolife Ltd 1,410 Cr. 595918/45438.3 3200.50 %16.5 %18.1 % 10.0
Industry Average11,996.74 Cr1,761.7442.05387.580.31%13.80%15.51%7.35

All Competitor Stocks of Rallis India Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales471741728628508863951630523782832598436
Expenses453619640561510750834577587672699536430
Operating Profit181228867-311311753-64110133626
OPM %4%16%12%11%-1%13%12%8%-12%14%16%10%1%
Other Income10775752243626
Interest1111122353348
Depreciation15181818202522222325263033
Profit before tax121097653-16919530-888511030-29
Tax %30%24%26%25%13%26%24%27%22%26%25%20%28%
Net Profit8825640-14677222-69638224-21
EPS in Rs0.424.242.902.03-0.733.453.701.13-3.553.244.221.23-1.08

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,3151,5191,4931,2881,3861,4981,9842,2522,4292,6042,9672,648
Expenses1,1101,2691,2371,0791,1481,2701,7411,9872,1042,3232,7462,335
Operating Profit205250255209238228243265325281221313
OPM %16%16%17%16%17%15%12%12%13%11%7%12%
Other Income116251689304649221316
Interest151071046810771419
Depreciation2936453842414662647491114
Profit before tax173209206165359191219239304222128196
Tax %31%30%29%24%26%26%29%22%25%26%28%24%
Net Profit11914614512626614115418522916492148
EPS in Rs6.147.537.486.4913.687.287.939.5411.768.454.737.60
Dividend Payout %37%32%33%39%27%34%32%26%26%36%53%33%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)22.69%-0.68%-13.10%111.11%-46.99%9.22%20.13%23.78%-28.38%-43.90%60.87%
Change in YoY Net Profit Growth (%)0.00%-23.37%-12.42%124.21%-158.10%56.21%10.91%3.65%-52.17%-15.52%104.77%

Rallis India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:6%
5 Years:6%
3 Years:3%
TTM:-1%
Compounded Profit Growth
10 Years:0%
5 Years:-1%
3 Years:-13%
TTM:53%
Stock Price CAGR
10 Years:4%
5 Years:11%
3 Years:6%
1 Year:40%
Return on Equity
10 Years:12%
5 Years:10%
3 Years:8%
Last Year:8%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:47 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital19191919191919191919191919
Reserves6026947798991,1061,1591,2661,3911,5721,6771,7111,8101,905
Borrowings8440753622217394769313713468
Other Liabilities3613843593564045338019449201,0699311,0401,117
Total Liabilities1,0661,1371,2321,3101,5511,7332,1592,4472,5872,8582,7983,0033,109
Fixed Assets3723953733423503515815936317717581,008956
CWIP27131424232551761641302376220
Investments193219232305534390109302283212223251216
Other Assets4745106146396449681,4191,4761,5081,7451,5811,6831,917
Total Assets1,0661,1371,2321,3101,5511,7332,1592,4472,5872,8582,7983,0033,109

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +14715564218353-579338216166217269
Cash from Investing Activity +-39-65-42-134-27595-51-246-162-103-142-102
Cash from Financing Activity +-94-105-24-52-74-92-52-74-67-61-41-184
Net Cash Flow14-15-2323-1-2318-13134-18

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow121.00210.00180.00173.00216.00207.00170.00171.00249.00188.0084.00179.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days403350525989827361636180
Inventory Days8899114128121170224193200227158199
Days Payable991018595113167178176156182117148
Cash Conversion Cycle29328085689212990105107102131
Working Capital Days-31646515193926067726269
ROCE %26%30%26%19%20%17%18%17%19%14%8%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters50.09%50.09%50.09%50.09%50.09%50.09%50.09%50.09%55.08%55.08%55.08%55.08%
FIIs6.56%6.03%6.08%6.02%6.01%7.00%7.09%7.69%8.23%9.21%9.20%9.46%
DIIs16.19%16.41%16.07%15.16%15.27%14.87%14.47%13.51%14.44%12.83%12.77%13.26%
Government0.41%0.41%0.41%0.41%0.41%0.41%0.41%0.41%0.41%0.41%0.41%0.41%
Public26.75%27.06%27.35%28.32%28.20%27.63%27.92%28.28%21.84%22.45%22.54%21.79%
No. of Shareholders1,03,2091,12,0731,24,3391,36,1351,35,4661,28,5591,29,2131,36,3511,35,3521,37,3511,44,1151,38,434

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Long Term Equity Fund6,654,1790.9154.9160,5662024-11-2110886.66%
SBI Contra Fund5,298,8440.65123.3660,5662024-11-218648.88%
Nippon India Small Cap Fund4,981,5740.28115.9760,5662024-11-218125.03%
Tata Small Cap Fund2,804,8571.0365.360,5662024-11-214531.08%
Bandhan Multi Cap Fund850,0001.1919.7960,5662024-11-211303.43%
HDFC Multi Cap Fund768,9070.1817.960,5662024-11-211169.54%
SBI Multi Asset Allocation Fund500,0000.4312.6760,5662024-11-21725.55%
Templeton India Equity Income Fund500,0000.6811.6460,5662024-11-21725.55%
Templeton India Value Fund275,0000.426.460,5662024-11-21354.05%
Nippon India Nifty Smallcap 250 Index Fund60,5660.171.4160,5662024-11-210%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 22Mar 21Mar 20Mar 19Mar 18
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)8.4411.759.517.998.62
Diluted EPS (Rs.)8.4411.759.517.998.62
Cash EPS (Rs.)12.2615.0512.6110.3310.97
Book Value[Excl.RevalReserv]/Share (Rs.)87.2481.8472.5166.2261.28
Book Value[Incl.RevalReserv]/Share (Rs.)87.2481.8472.5166.2261.28
Revenue From Operations / Share (Rs.)133.90124.93115.79102.0292.09
PBDIT / Share (Rs.)15.5018.6815.1013.9714.28
PBIT / Share (Rs.)11.6815.3911.9411.6011.90
PBT / Share (Rs.)11.4415.6112.2111.3311.67
Net Profit / Share (Rs.)8.4411.759.457.968.59
NP After MI And SOA / Share (Rs.)8.4411.759.507.998.62
PBDIT Margin (%)11.5714.9513.0413.6815.50
PBIT Margin (%)8.7212.3110.3111.3612.91
PBT Margin (%)8.5412.4910.5411.1012.67
Net Profit Margin (%)6.309.408.157.809.32
NP After MI And SOA Margin (%)6.309.408.207.839.35
Return on Networth / Equity (%)9.6714.3613.1112.0814.07
Return on Capital Employeed (%)12.7517.8715.5016.7218.15
Return On Assets (%)5.748.827.547.188.38
Long Term Debt / Equity (X)0.000.000.010.010.01
Total Debt / Equity (X)0.030.020.040.050.01
Asset Turnover Ratio (%)0.950.960.970.950.86
Current Ratio (X)1.671.811.701.741.71
Quick Ratio (X)0.790.970.960.900.92
Inventory Turnover Ratio (X)1.841.921.871.921.83
Dividend Payout Ratio (NP) (%)35.5221.2726.3031.2843.50
Dividend Payout Ratio (CP) (%)24.4616.6119.7324.1334.08
Earning Retention Ratio (%)64.4878.7373.7068.7256.50
Cash Earning Retention Ratio (%)75.5483.3980.2775.8765.92
Interest Coverage Ratio (X)62.9769.7748.0551.7664.49
Interest Coverage Ratio (Post Tax) (X)35.2943.0829.1830.5039.79
Enterprise Value (Cr.)4622.194901.563428.933235.574587.95
EV / Net Operating Revenue (X)1.772.021.521.632.56
EV / EBITDA (X)15.3313.4911.6811.9116.52
MarketCap / Net Operating Revenue (X)1.782.021.521.622.57
Retention Ratios (%)64.4778.7273.6968.7156.49
Price / BV (X)2.733.092.422.503.86
Price / Net Operating Revenue (X)1.782.021.521.622.57
EarningsYield0.030.040.050.040.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Rallis India Ltd as of November 23, 2024 is: 343.35

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 23, 2024, Rallis India Ltd is Undervalued by 7.97% compared to the current share price 318.00

Intrinsic Value of Rallis India Ltd as of November 23, 2024 is: 328.09

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 23, 2024, Rallis India Ltd is Undervalued by 3.17% compared to the current share price 318.00

Last 5 Year EPS CAGR: -4.45%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 18.75%, which is a positive sign.
  2. The company has higher reserves (1,274.69 cr) compared to borrowings (73.31 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (1.42 cr) and profit (217.58 cr) over the years.
  1. The stock has a high average Working Capital Days of 56.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 87.50, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Rallis India Ltd:
    1. Net Profit Margin: 6.3%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 12.75% (Industry Average ROCE: 13.8%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 9.67% (Industry Average ROE: 15.51%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 35.29
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.79
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 41.5 (Industry average Stock P/E: 31.08)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.03
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Rallis India Ltd. is a Public Limited Listed company incorporated on 23/08/1948 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L36992MH1948PLC014083 and registration number is 014083. Currently company belongs to the Industry of Agro Chemicals/Pesticides. Company’s Total Operating Revenue is Rs. 2603.93 Cr. and Equity Capital is Rs. 19.45 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Agro Chemicals/Pesticides23rd Floor, Lodha Excelus, Mumbai Maharashtra 400037investor_relations@rallis.com
http://www.rallis.com
Management
NamePosition Held
Mr. Bhaskar BhatChairman, Non Ind & Non Exe Director
Dr. Gyanendra ShuklaManaging Director & CEO
Mr. R MukundanNon Exe.Non Ind.Director
Ms. Padmini Khare KaickerInd. Non-Executive Director
Dr. C V NatrajInd. Non-Executive Director
Mr. Narain DuraiswamiInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Rallis India Ltd?

The latest intrinsic value of Rallis India Ltd as on 23 November 2024 is ₹343.35, which is 7.97% higher than the current market price of ₹318.00.

What is the Market Cap of Rallis India Ltd?

The Market Cap of Rallis India Ltd is 6,189 Cr..

What is the current Stock Price of Rallis India Ltd as on 23 November 2024?

The current stock price of Rallis India Ltd as on 23 November 2024 is 318.

What is the High / Low of Rallis India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Rallis India Ltd stocks is 379/225.

What is the Stock P/E of Rallis India Ltd?

The Stock P/E of Rallis India Ltd is 41.5.

What is the Book Value of Rallis India Ltd?

The Book Value of Rallis India Ltd is 98.9.

What is the Dividend Yield of Rallis India Ltd?

The Dividend Yield of Rallis India Ltd is 0.79 %.

What is the ROCE of Rallis India Ltd?

The ROCE of Rallis India Ltd is 11.2 %.

What is the ROE of Rallis India Ltd?

The ROE of Rallis India Ltd is 8.30 %.

What is the Face Value of Rallis India Ltd?

The Face Value of Rallis India Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Rallis India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE