RALLIS INDIA LTD - Quantamental Equity Research

Quantamental Equity Research on RALLIS INDIA LTD | Release: 20 Jan 2020 17:20:36 UTC+05:30 | Reporting Currency: INR | Trading Currency: INR | Exchange:NSE/BSE NSE CODE:RALLIS and BSE CODE:500355
Last Close:  INR 193.1
Fair Value:  INR 197.9
Est. Price by Mar 20:  INR 322.25
Market Capitalization (INR Crs):  3755.19
Industry:  Agrochemicals
Rating:  STRONG BUY
Upside:  67%
Company Profile
Rallis India has been engaged primarily in the business of manufacture and marketing of Agri Inputs.(Source : 201903 Annual Report Page No: 135)
Compounded Annual Growth   
Particulars 1-Year 3-Year 5-Year 10-Year
Revenue % 11% 9% 3% 9%
EBIT % -2% 4% 0% 4%
Earnings % -7% 3% 0% 4%
Book Value %  8% 13% 12% 12%
Stock Total Return %  -31% -1% -1% 11%
Share holding pattern
Particulars %age   
(A) Promoter & Promoter Group 50.09  
(B) FII/FPI 4.41  
(C) DII/Insurance Companies 17.90  
(D) Public holding < 2 lakhs of cap. 10.23  
(E) Others 17.37  
Grand Total 100.00  
Fundamentals (Historical and Estimated)
Particulars Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19  Mar-20 E   Mar-21 E   Mar-22 E   Mar-23 E   Mar-24 E 
Price 131 122 115 173 227 170 260 238 164 322 371 420 458 490
Return on Equity 25% 18% 19% 21% 19% 16% 27% 14% 12% 15% 16% 16% 15% 15%
Price to Earning  20.2 23.9 18.9 22.2 28.1 23.1 17.0 27.6 20.5 28.4 28.4 28.4 28.4 28.4
EVTI 2.4 2.0 1.6 2.0 2.6 2.2 2.6 2.5 1.6 2.7 2.7 2.7 2.7 2.7
EVTIFM 20.2 23.9 18.9 22.2 28.1 23.1 17.0 27.6 20.5 28.4 28.4 28.4 28.4 28.4
Price to Book Value 5.1 4.3 3.6 4.7 5.4 3.7 4.5 3.9 2.5 4.3 4.4 4.5 4.3 4.2
Debt to Equity  0.2 0.3 0.2 0.1 0.2 0.1 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.0
Dividend Yield 2% 2% 2% 1% 1% 1% 1% 1% 2% 1% 1% 1% 1% 1%
Cash Flow to Firm -36% 3% 6% 6% 2% 5% 9% 1% 3% 2% 3% 3% 5% 5%
Detailed Estimates
Title Mar-19 Mar-20 E Mar-21 E Mar-22 E Mar-23 E Mar-24 E  
Sales       1,983.96       2,299.19       2,601.92       2,873.68       3,095.60       3,250.38  
EBITDA          274.40          354.74          401.45          443.37          477.61          501.49  
EBIT          228.32          301.34          344.07          383.30          416.35          445.41  
PBT          220.26          293.28          337.24          382.37          416.35          445.41  
NPAT          155.38          220.81          253.91          287.89          313.47          335.35  
Price to Earning             20.51            28.38            28.38            28.38            28.38            28.38  
Price to Book Value              2.48              4.35              4.44              4.48              4.35              4.17  
Debt to Equity               0.06              0.04              0.01                  -                    -                    -    
Return on Equity              0.12              0.15              0.16              0.16              0.15              0.15  
Enterprise Value to Total Income (EVTI)              1.56              2.66              2.68              2.72              2.69              2.67  
Enterprise Value to Total Income to Firm Margin(EVTIFM)            24.16            33.36            33.37            33.59            32.91            32.13  
Price or Est. Share Prices          163.90          322.25          370.60          420.25          457.60          489.55  
DISCOUNTED CASH FLOW
Title Mar-20 E Mar-21 E Mar-22 E Mar-23 E Mar-24 E  
PBT          293.28          337.24          382.37          416.35          445.41  
Interest              8.06              6.84              0.93                  -                    -    
Depreciation            53.40            57.37            60.07            61.27            56.09  
Cash Flow Before Tax          354.74          401.45          443.37          477.61          501.49  
Tax Rate            25.00            25.00            25.00            25.00            25.00  
Cash Flow After Tax          266.05          301.08          332.53          358.21          376.12  
Terminal Cash Flow                                                                                      -         4,768.22  
Total Cash Flow          266.05          301.08          332.53          358.21       5,144.34  
Present Value of Cash Flow (Mar-20 E)       3,909.75  
Debt (Mar-20 E)            61.80  
Value of Equity (Mar-20 E)       3,847.96  
Fair Value Per Share (Mar-20 E)          197.90  
Equity            3,755
Debt                 73
Beta Take from Reuters 0.81
Risk Free Rate Prevailing Yield in India 7%
Market Risk Premium Assuming 8.82% premium for Equity Investments 7%
Interest Paid                   8
Tax Benefit                   2
Interest Net of Tax                   6
Debt                 73
Cost of Debt 8%
Cost of Equity 13%
Debt Weight 2%
Equity Weight 98%
WACC 13%
Cash Flow of Mar-24 E          376.12
Growth 5.0%
Present Value of Terminal Cashflow       4,768.22
Peer Comparision
# Name CMP Rs. Mar Cap Rs.Cr. Debt Rs.Cr. Cost of Equity % Kd before tax % WACC % Beta P/E Ann. ROE % CMP / BV PE/ROE PE/ROE/G
   1  UPL           588.10          44,934     31,066.00            15.10              7.35            11.80             -0.35            38.21              3.01              3.12            12.71           -21.40
   2  P I Inds.        1,465.95          20,257              0.10            21.90              7.50            21.90              1.21            44.21            25.06              8.17              1.76              5.84
   3  Rallis India           193.10            3,755            67.64            21.21            14.46            21.02              0.87            19.46            13.79              2.73              1.41              0.81
   4  Bharat Rasayan        6,396.05            2,718          185.75            55.57            11.26            52.53              4.11            18.13            58.19              5.39              0.31              0.56
   5  Sharda Cropchem           268.50            2,422              0.09              8.52              7.50              8.52             -0.41            16.93             -2.04              1.89             -8.31              6.17
   6  Dhanuka Agritech           444.20            2,113              7.05            32.55              7.50            32.46              1.92            18.21            45.61              2.96              0.40              4.43

Comments

  1. Thank for your valuable information. stock investor is a stock related website which provides day to day information of the stock market.
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