Rakesh Jhunjhunwala Portfolio Shares of Rallis India have been in the grip of bears since last one year as this stock has given zero returns in last one year. Actually, this stock of Rakesh Jhunjhunwala has remained in the consolidation zone since the beginning of the new year in 2022 as well. However, in the past one month, the stock has managed to give a rally of around 3 per cent, which is expected to counter trend reversal. At least Anand Rathi believes the stock is bullish and may go up 320 in the long run.
what is going to pump Rallis India Share Despite weak Q4 numbers, Anand Rathi Research report says, “Non-availability of key raw materials, higher input prices and deceleration in international trade growth impacted Rallis Q4 and annual performance. Major short-term challenges are rising input costs, soft contract manufacturing.” Demand and challenges remain in its seed business, but its product-launch focus, increasing share of its herb range, export market share and ongoing capex plans will support long-term growth.
On Valuation of Rallis India; The brokerage says, “Management stated that Q1 FY23 will be soft and margin pressure will continue due to non-availability of RM and rising input cost. It aims to maintain absolute EBITDA rather than percentage. We have observed a sharp rise in RM prices. In its FY23e/FY24e, more are expected in the coming months.”
Rakesh Jhunjhunwala on the risk factors involved in the portfolio stock; “Failure to diversify non-kharif range of seeds, over-use of illegal herbicide-tolerant cotton seeds, dependence on monsoon, delay in launching products and slowdown in R&D,” the brokerage report says.
Anand Rathi Stock Recommendation
Giving the ‘Buy’ tag to the shares of Rallis India, Anand Rathi says, “We maintain our buy rating with TP. 320, valuation of the stock at 24x FY24e earnings.”
Rakesh Jhunjhunwala’s shareholding in Rallis India
As per the shareholding pattern of Rallis India for Q4FY22, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala hold a stake in the company. Rakesh Jhunjhunwala holds 1,38,85,570 shares or 7.14 per cent stake, while his wife Rekha Jhunjhunwala holds 51,82,750 shares or 2.67 per cent stake in Rallis India.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.