This Tata Group fertilizer stock is in action today

The stock surged 5 per cent

On December 30, the shares of Rallis India Ltd surged 5 per cent and are trading at Rs 244.55. The stock opened at Rs 233.05 and made an intraday high and low of Rs 247.9 and Rs 233.05, respectively. The stock is rallying on account of strong Q2FY23 results.  

Rallis India is a part of Tata Group company. It is involved in the business of manufacturing agrochemicals, is present across the value chain of agriculture inputs from seeds to organic plant growth nutrients. The company is the major player in the crop protection with a strong presence in three segments- insecticides, fungicides and herbicides in both domestic and international market.  

For the latest September quarter, the company recorded revenue of Rs 951 crore, YoY improvement of 30.63 per cent. For the same quarter, the Q2FY23 net profit stood at Rs 71 crore, a YoY increase of 26.78 per cent.   

The company is also involved in the business of providing predictive advisory services, such as pest forecast, medium term weather information to farmers to manage their farms through initiative called ‘Drishti’.   

About the shareholding pattern, almost 50.19 per cent of the stake is owned by the promoters, 6.02 per cent by FIIs, 15.16 per cent by DIIs, 0.41 per cent by Government and the rest 28.32 per cent by the non-institutional investors.     

The company has a market capitalization of Rs 4755 crore and is trading at a PE multiple of 27.6x. The scrip has a 52-week high and low of Rs 299.25 and Rs 182.55, respectively.