This Tata stock rises over 6% on solid Q2 show

Shares of leading crop and care company Rallis India, a subsidiary of Tata Chemicals, rose up to 6.5% to Rs 230.5 in Thursday’s intraday trade after the company reported a net profit of Rs 71 crore in the September quarter of 2022, up 26% year-on-year (YoY).

The revenue of the company for the quarter was up 31% at Rs 951 crore over the same period of the previous year's Rs 728 crore.

“Our Q2 revenues grew 31%+ over last year on the back of 31% growth in the crop care business and 12% growth in seeds. Within our crop care segment, exports grew by 67% and the domestic formulation business grew by 13% growth,” Sanjiv Lal, Managing Director & CEO of Rallis India, said.

“Despite the uneven distribution of monsoon, domestic business leveraged our geographic and portfolio diversity to achieve growth. While margins were satisfactory in the domestic business, international business margins were lower compared to Q2 of the previous financial year. Going forward, we continue to remain focused on our long-term growth plans of new product introduction and capital investment,” he added.

Domestic brokerage Prabhudas Lilladher has a buy call on Rallis India with a target price of Rs 250, implying an upside potential of 9% from the current market price of Rs 229.3. The time given by the analyst is one year when the stock price can reach a defined target.

At 11.18 am, the scrip was trading 5.57% higher at Rs 228.55 over its last day’s trading price of Rs 216.5 a piece. However, the stock has fallen over 19% in the last six months, while it has surged nearly 11% in the past three months.

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