Rallis India Q2: SEBI Analyst Flags Bounce Potential Near ₹270 Support Zone
Synopsis
The analyst said Rallis India’s strong export growth, disciplined cost control, and new product launches are helping the company shift toward higher-margin specialty crop-care segments.
Shares of Rallis India climbed on Friday after the Tata Group–backed agri-chemical company posted a 4% year-on-year rise in net profit to ₹102 crore for the September quarter, even as revenue slipped 7% to ₹861 crore.
The company said erratic and prolonged rains had impacted fieldwork and pesticide applications. Despite the lower top line, Rallis maintained a healthy financial position with ₹52 crore in free cash flow, no external debt, and cash and liquid reserves of ₹454 crore.
A Gradual Turnaround In Motion
SEBI-registered analyst Finkhoz said Rallis India’s second-quarter performance showed early signs of improvement. While sales fell due to weather-related disruptions, the company managed to protect margins through cost control and higher exports.
Exports were up 33% year-on-year, and the business-to-business segment grew 14%, helped by new product launches such as Penflor, Allato, and Deeweed.
He said the company’s ongoing shift toward high-value crop-care and biological products is reshaping its profile, moving it from a traditional agri player to a global specialty crop-care business with better long-term profitability.
Technical View
Finkhoz noted that the stock has been trading in a rising channel since 2019. After facing rejection near ₹400, it has corrected toward the ₹270–₹285 support zone, which aligns with its 200-day exponential moving average.
The Relative Strength Index (RSI) is around 42, suggesting that the stock is near oversold territory and could see a bounce if support holds.
He added that a close above ₹310 could confirm a reversal, with possible upside targets at ₹330, ₹355, and ₹380, while maintaining a stop-loss at ₹265.
What Is The Retail Mood On Stocktwits?
On Stocktwits, retail sentiment was ‘bearish’ amid ‘normal’ message volume.
Rallis’ stock has declined 4% so far in 2025.
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