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Business News/ Markets / Stock Markets/  Anand Rathi gives 'buy' tag to this Rakesh Jhunjhunwala portfolio stock
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Anand Rathi gives 'buy' tag to this Rakesh Jhunjhunwala portfolio stock

Rakesh Jhunjhunwala portfolio:  Anand Rathi report says that Rallis India's product-launch focus, rising share of its herbicide range, export market share gains and ongoing capex plans would support long-term growth

Anand Rathi has given ‘buy’ tag to Rallis India shares valuing the Rakesh Jhunjhunwala stock at 24x FY24e earnings. (Reuters)Premium
Anand Rathi has given ‘buy’ tag to Rallis India shares valuing the Rakesh Jhunjhunwala stock at 24x FY24e earnings. (Reuters)

Rakesh Jhunjhunwala portfolio: Rallis India shares have been under the grip of bears for last one year as the stock has given zero return in last one year. In fact, this Rakesh Jhunjhunwala stock has remained in consolidation zone after ushering in new year 2022 as well. However, in last one month, the stock has managed to give around 3 per cent upside move giving hope of trend reversal in the counter. At least Anand Rathi believes that the stock is poised for an upside swing and it may go up to 320 in long term.

On what is going to pump Rallis India shares despite weak Q4 numbers, Anand Rathi research report says, "Non-availability of key raw materials, higher input prices and declining international business growth hurt Rallis Q4 and annual performance. Key short-term challenges are rising input costs, softer contract manufacturing demand and challenges in its seeds business, but its product-launch focus, rising share of its herbicide range, export market share gains and ongoing capex plans would support long-term growth."

On valuations of Rallis India; the brokerage says, "Management said Q1 FY23 would be soft and margin pressure would continue due to RM non-availability and rising input costs. It targets maintaining absolute EBITDA rather than percent. We cut our FY23e/FY24e considering the steep rise in RM prices, expected to be higher in coming months."

On risk factors involved in this Rakesh Jhunjhunwala portfolio stock; the brokerage report says, "Failure to diversify to a non-kharif range of seeds, greater use of illegal herbicide-tolerant cotton seed, monsoon dependence, delay in launching products and slowdown in R&D."

Anand Rathi stock recommendation

Giving 'buy' tag to Rallis India shares, Anand Rathi says, "We maintain our Buy rating, with a TP of 320, valuing the stock at 24x FY24e earnings."

Rakesh Jhunjhunwala shareholding in Rallis India

As per shareholding pattern of Rallis India for Q4FY22, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala have shareholding in the company. Rakesh Jhunjhunwala holds 1,38,85,570 shares or 7.14 per cent stake whereas his wife Rekha Jhunjhunwala holding in Rallis India is 51,82,750 shares or 2.67 per cent stake in the company.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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Published: 27 Apr 2022, 11:39 AM IST
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