This fertilizer stock is trending on December 30

The shares of Rallis India Ltd surged 5% on the day

On December 30, the market is trading flat. At 2:20 pm, the S&P BSE Sensex is trading at 61,122.87, while NIFTY50 is trading at 18,186.90, both down 0.02%. About sectoral performance, Oil and Gas is among the top gainers, while Capital Goods and FMCG are among the top losers. Talking about stock specific action, Rallis India Ltd is among the top gainers in BSE group ‘A’.

The shares of Rallis India Ltd surged 5% and are trading at Rs 244.55. The stock opened at Rs 233.05 and made an intraday high and low of Rs 247.9 and Rs 233.05, respectively. The stock is rallying on account of strong Q2FY23 results.

Rallis India is a part of Tata Group company. It is involved in the business of manufacturing agrochemicals, is present across the value chain of agriculture inputs from seeds to organic plant growth nutrients. The company is the major player in the crop protection with a strong presence in three segments- insecticides, fungicides and herbicides in both domestic and international market.

For the latest September quarter, the company recorded revenue of Rs 951 crore, YoY improvement of 30.63%. For the same quarter, 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 forecast, medium term weather information to farmers to manage their farms through 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 the non-institutional investors.

The company has a market capitalization of Rs 4755 crore and is trading at a PE multiple of 27.6x. The scrip has a 52-week high and low of Rs 299.25 and Rs 182.55, respectively.