This pesticide manufacturing company is trending on October 20; here's why
Shares of the company surged 5.5% on the day.
On October 20, the market is trading in the red. At 11:25 am, the S&P BSE Sensex is trading at 58948.11, down 0.27%, while NIFTY50 is trading at 17488.6, down 0.14%. About sectoral performance, IT is among the top gainers, while Consumer Durables and Realty are among the top losers. Talking about the stock-specific action, Rallis India Ltd is among the top gainers in BSE group ‘A’.
The shares of Rallis India Ltd surged 5.5% and are trading at Rs 228.45. The stock opened at Rs 221 and made an intraday high and low of Rs 230.5 and Rs 219.4, respectively. The stock is rallying on account of strong Q2FY23 results.
Rallis India Ltd is a part of the Tata Group company. It is involved in the business of manufacturing agrochemicals and is present across the value chain of agriculture inputs from seeds to organic plant growth nutrients. The company is a major player in crop protection with a strong presence in three segments- insecticides, fungicides, and herbicides in both domestic and international markets.
The company announced Q2FY23 results yesterday. For the latest September quarter, the company recorded a revenue of Rs 951 crore, a YoY improvement of 30.63%. The Q2FY23 net profit stood at Rs 71 crore, a YoY increase of 26.78%.
The company is also involved in the business of providing predictive advisory services, such as pest forecasts, and medium-term weather information to farmers to manage their farms through an initiative called ‘Drishti’.
About the shareholding pattern, about 50.19% of the stake is owned by the promoters, 6.02% by FIIs, 15.16% by DIIs, 0.41% by Government, and the rest 28.32% by non-institutional investors.
The company has a market capitalisation of Rs 4405 crore and is trading at a PE multiple of 26.9x. The scrip has a 52-week high and low of Rs 299 and Rs 182, respectively.
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