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Check Before You Invest : Rallis India Ltd

BSE: 500355 NSE: RALLIS ISIN: INE613A01020
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Pesticides & Agrochemicals

Snapshot

Q.1 Which industry/sub-sector does Rallis India Ltd belong to?
Rallis India Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Pesticides & Agrochemicals segment.
Q.2 Is Rallis India Ltd a good quality company?
Rallis India Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Rallis India Ltd undervalued or overvalued?
Rallis India Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Rallis India Ltd a good buy now?
Rallis India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Rallis India Ltd?
Rallis India Ltd revenue growth is 7.2% for FY-2022 , which is below its 5 year CAGR of 9.4% , indicating slower growth.
Q.2 Gross Profit margin of Rallis India Ltd?
Rallis India Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.2% for FY-2022 , which is below its 5 year median of 11.6% , indicating decreasing margins.
Q.3 Operating Profit Margin of Rallis India Ltd?
Rallis India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.06% for FY-2022 , which is below its 5 year median of 12.63% indicating decreasing margins.
Q.4 Net Profit Margin of Rallis India Ltd?
Rallis India Ltd Net Profit Margin is 6.31% for FY-2022 , is below with its 5 year median of 8.16%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 9.2 11.6
Operating Profit Margin 11.06 12.63
Net Profit Margin 6.31 8.16
Q.5 Return on Asset of Rallis India Ltd?
Rallis India Ltd Return on Asset is 6.03%, which is below its 5 year historical median of 7.97%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Rallis India Ltd?
Rallis India Ltd Return on equity is 9.99% for FY-2022 , which is below its historical median of 13.63%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Rallis India Ltd?
Rallis India Ltd Return on capital employed is 13.53% for FY-2022 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Rallis India Ltd?
Rallis India Ltd Cash conversion cycle is 37 days, above its historical median of 37 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.19 1.19
ROE 9.99 13.63
ROCE 13.53 17.74
Cash Conversion Cycle 37 days 37 days
Q.9 Debt to Equity ratio of Rallis India Ltd?
Rallis India Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.27 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Rallis India Ltd?
Rallis India Ltd Debt to cash flow from operations is 0.35 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Rallis India Ltd?
Promoters hold 55.08% of the Rallis India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Rallis India Ltd vs industry peers?
Rallis India Ltd revenue CAGR is 3.41% , compared to the industry median CAGR of 8.45% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,603.9 716.1
Gross Profit 239.6 68.5
Operating Profit 274 86
Net Profit 164 44
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.19 1.19
ROE 9.99 13.63
ROCE 13.53 16.98
Cash Conversion Cycle (days) 36.58 93

Valuation & price assessment

Q.1 Stock return of Rallis India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 3.6% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 3.6% -0% 9.2% 11.8%
Q.3 Valuation ratios of Rallis India Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 31.2 28.83 24.15
Price to Book - 4.16 2.51
Price to Sales 1.97 2.73 1.40
EV to EBITDA 16.87 18.82 12.63

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