Sell Rallis India shares despite Q2 beat, says Antique Stock Broking; here’s why
Antique Stock Broking has maintained its ‘Sell’ rating on Rallis India Ltd, a subsidiary of Tata Chemicals Ltd, even as the scrip climbed nearly 13 per cent in the previous session on beating consensus estimates in the September quarter. While Antique Stock Broking revised its target price for the Tata group stock upward to Rs 310 from Rs 250, it cited long-term business underperformance and premium valuation behind its ‘Sell’ call.
“The anticipated recovery in the agrochemical industry, new product launch pipeline, and expected steady scale-up of the CSM business will result in long-term growth for the company. However, considering the premium valuations, we maintain SELL with a revised TP of Rs 310 (earlier INR 250), valuing it at…
