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We met with the management of Rallis India on 16 are the key takeaways-
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EPS change FY12E/13E (%) Target Price change (%) Nifty Sensex
Price Performance
(%) Absolute Rel. to Nifty
Source: Bloomberg
1M 9 21
3M 20 31
6M 12M 32 44 29 39
145
16
130
115
-8
100 Aug-10
Feb-11
Apr-11
Jun-11
Source: Bloomberg
Stock Details
Sector Bloomberg Equity Capital (Rs mn) Face Value(Rs) No of shares o/s (mn) 52 Week H/L Market Cap (Rs bn/USD mn) Daily Avg Volume (No of sh) Daily Avg Turnover (US$mn) Agri Input & Chemicals RALI@IN 194 1 194 174/117 33/728 187041 0.7
Rohan Gupta rohan.gupta@emkayglobal.com +91 22 6612 1248 Balwindar Singh balwindar.singh@emkayglobal.com +91 22 6612 1272
YE-Mar
Net Sales
Rallis India
Rallis India
Company Bayer Rallis Rallis Rallis Rallis Bayer Bayer Rallis Rallis Rallis Rallis Bayer Bayer Bayer Bayer
Emkay Research
17 August 2011
Rallis India
Pulses Red Gr Green Gr Black Gr 36 26 23 12 8 8 19 11 9 -37% -31% -9% 34% 30% 35%
Emkay Research
17 August 2011
Rallis India
Key Financials
Income Statement
Y/E, Mar (Rs. mn) Net Sales Growth (%) Expenditure Materials Consumed Employee Cost Other Exp EBITDA Growth (%) EBITDA margin (%) Depreciation EBIT EBIT margin (%) Other Income Interest expenses PBT Tax Effective tax rate (%) Adjusted PAT Growth (%) Net Margin (%) (Profit)/loss from JVs/Ass/MI Adj. PAT After JVs/Ass/MI E/O items Reported PAT PAT after MI Growth (%) FY10 8,787 5.5 7,225 5,034 667 1,524 1,562 45.9 17.8 183 1,378 15.7 275 27 1,626 512 31.5 1,114 64.2 12.7 1,114 (14) 1,099 1,114 64.2 FY11 10,657 21.3 8,944 6,283 696 1,762 1,713 9.7 16.1 175 1,539 14.4 346 40 1,845 580 31.5 1,264 13.5 11.9 1,264 1,264 1,264 13.5 FY12E 13,086 22.8 10,524 7,669 833 2,022 2,563 49.6 19.6 265 2,298 17.6 216 54 2,460 738 30.0 1,722 36.2 13.2 1,722 1,722 1,722 36.2 FY13E 15,520 18.6 12,199 8,971 900 2,328 3,322 29.6 21.4 287 3,035 19.6 233 54 3,213 964 30.0 2,249 30.6 14.5 2,249 2,249 2,249 30.6 Gross Block Less: Depreciation Net block Capital work in progress Goodwill Investment Current Assets Inventories Sundry debtors Cash & bank balance Loans & advances Other current assets Current lia & Prov Current liabilities Provisions Net current assets Total Assets 3,091 1,564 1,527 1,120 1,402 3,263 1,489 755 119 886 15 3,041 2,595 446 222 4,272 4,057 1,743 2,314 1,695 1,236 256 4,666 2,289 1,064 146 1,154 13 3,891 3,306 586 774 6,275 5,751 2,007 3,744 400 1,236 256 4,968 2,330 1,362 108 1,154 13 3,073 2,510 564 1,895 7,532 6,151 2,294 3,858 400 1,236 256 7,141 2,977 1,701 1,296 1,154 13 3,672 2,977 695 3,469 9,219
Balance Sheet
Y/E, Mar (Rs. mn) Equity share capital Reserves & surplus Net worth Minority Interest Secured Loans Unsecured Loans Loan Funds Net deferred tax liability Total Liabilities FY10 130 4,115 4,245 0 16 65 81 (53) 4,272 FY11 194 4,855 5,049 21 1,087 85 1,172 32 6,275 FY12E 194 6,111 6,306 21 1,087 85 1,172 32 7,532 FY13E 194 7,798 7,993 21 1,087 85 1,172 32 9,219
Cash Flow
Y/E, Mar (Rs. mn) PBT (Ex-Other income) Depreciation Interest Provided Other Non-Cash items Chg in working cap Tax paid Operating Cashflow Capital expenditure Free Cash Flow Other income Investments Investing Cashflow Equity Capital Raised Loans Taken / (Repaid) Interest Paid Dividend paid (incl tax) Income from investments Others Financing Cashflow Net chg in cash Opening cash position Closing cash position FY10 1,527 183 23 9 1,077 -667 2,152 (949) 1,203 8 28 36 9 (744) (28) (440) 0 (2) -1,205 35 84 119 FY11 1,845 175 25 (124) (236) -697 987 (1,378) -391 54 (116) -63 849 (39) (357) 0 453 -1 119 146 FY12E 2,460 265 54 (57) (1,136) -738 848 (400) 448 0 (54) (431) 0 -485 -37 146 108 FY13E 3,213 287 54 132 (518) -964 2,204 (400) 1,804 0 (54) (562) 0 -617 1,188 108 1,296
Key Ratios
Y/E, Mar Profitability (%) EBITDA Margin Net Margin ROCE ROE RoIC Per Share Data (Rs) EPS CEPS BVPS DPS Valuations (x) PER P/CEPS P/BV EV / Sales EV / EBITDA Dividend Yield (%) Gearing Ratio (x) Net Debt/ Equity Net Debt/EBIDTA Working Cap Cycle (days) (0.3) (1.0) (15) 0.2 0.4 2 0.1 0.3 33 (0.0) (0.1) 40 FY10 16.5 11.4 36.6 26.1 62.6 5.0 6.1 21.8 1.2 32.5 27.5 7.7 3.5 21.5 1.0 FY11 16.1 11.9 35.8 27.2 53.2 6.5 7.4 26.0 2.0 25.7 22.6 6.4 3.1 19.4 0.6 FY12E 19.6 13.2 36.5 30.3 42.2 8.9 10.2 32.4 2.2 18.9 16.4 5.2 2.5 13.0 0.7 FY13E 21.4 14.5 39.1 31.5 43.4 11.6 13.0 41.1 2.9 14.5 12.8 4.1 2.1 9.7 1.2
Emkay Research
17 August 2011
Rallis India
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