RALLIS

Fundamental View-

Rallis India, a Tata Group company, operates in the agrochemicals and seeds segment, serving both domestic and international markets. In FY25, the company reported revenue of ₹2,662.9 crore with a net profit of ₹125.1 crore, showing modest top-line growth but pressure on margins. Its fundamentals remain stable with a strong balance sheet—low debt (D/E 0.05), healthy liquidity, and a current ratio near 1.9. However, export revenues declined significantly (35%) due to weak global demand. The seeds business performed well, achieving breakeven and showing 21% YoY growth. Rallis maintains an EBITDA margin of 10% and ROCE near 10%, though its net profit margin dipped to ~4.7%. With a high Piotroski score (8/9), the stock reflects strong financial quality, but valuations are relatively expensive (P/E 50x trailing). It is suited for long-term investors who understand cyclical agro trends and can tolerate moderate volatility. Technical View- Rallis India is showing strong bullish momentum on the daily chart, with the stock maintaining its uptrend after forming a bottom at ₹196 on 7th April 2025. On 11th July, it opened at ₹329.95, made a low of ₹324.85, and closed near the day’s high at ₹343.55, indicating strong buying interest. The stock is consistently trading above its 14-day EMA, which has acted as a reliable support zone. After making a high of ₹378.70 on 16th October 2024, it corrected significantly but has since been forming higher highs and higher lows. The weekly chart also shows the stock taking good support near its 50-day moving average. Technical indicators like RSI (70), MACD, and Parabolic SAR support continued upside. Considering the strong structure on both daily and weekly timeframes, dips towards ₹325–₹330 may offer a good buying opportunity with a positional stoploss at ₹300 and potential upside targets of ₹395–₹400 in the medium term.