Rallis India Limited

Basic Materials — Agricultural Inputs · NSE

₹205.90+₹4.89 (+2.43%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Rallis India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Rallis India Limited manufactures and markets agri input products in India and internationally.

IndustryAgricultural Inputs

SectorBasic Materials

Employees1,540

Annual revenue₹2,872 Cr

How does it make money?

Turns over ₹2,872 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 1,540 employees supports ₹1.87 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.87 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE22.3%

What is the outlook?

14 analysts covering the stock expect revenue to grow about 10.7% and earnings to grow about 18.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.7%

Est. earnings growth+18.6%

Analysts14

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -3% while net margin moved +106% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-3%

Margin effect+106%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.51 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

60/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

18.8x

3Y Median

43.4x

40 monthly readings · mean 42.5x · range 21.1x–69.9x

Sector Median

28.7x

median of 4 sector peers

🟢Current valuation is approximately 57% below its 3y median of 43.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 35% below the peer median of 28.7x.

vs. its own history

Cheap

43.4x median over 40 months · -57%

vs. sector peers

Cheap

28.7x median of 4 peers · -35%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.7x

PEG

0.72

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 8.8% to 13.1% over 3 years.
Debt is being paid down
Total debt is down 55% over 3 years.
Cash generation is improving
Free cash flow is up 341% over 3 years.
Return on equity is rising
ROE has improved from 5.3% to 9.0%.
Return on capital is rising
ROCE has improved from 7.8% to 12.3%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 2.99x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Receivables growing faster than salesFinancial
Receivables up 23% against revenue up -3% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.8% to 13.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 55% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 57% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 35% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 2.99x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 23% against revenue up -3%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 11%✓ 13.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹127 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 9%✓ 12.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 43.4x✓ 18.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 7 neutral · 1 weak

Market Cap

₹4,004 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.8x

Fair

Fairly valued against the generic band

P/B Ratio

1.96x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹10.97

Profitable

Profitable on a per-share basis

ROE

9.0%

Moderate

Moderate capital efficiency

ROCE

12.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.99x

High

High leverage

Revenue Growth (YoY)

6.8%

Modest

Modest growth

Profit Growth (YoY)

31.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.46%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹127 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

14.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

15.2%

Good

Healthy core-business profitability

Net Margin

7.2%

Average

Average bottom-line conversion

Current Ratio

1.89

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

200.5 / 205.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

59.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,955 Cr	₹2,633 Cr	₹2,640 Cr	₹2,872 Cr	-0.9%
EBITDA	₹259 Cr	₹332 Cr	₹311 Cr	₹377 Cr	+13.3%
EBITDA Margin	8.8%	12.6%	11.8%	13.1%	—
PAT (Net Profit)	₹92 Cr	₹148 Cr	₹125 Cr	₹184 Cr	+26.0%
EPS	₹4.73	₹7.61	₹6.43	₹9.46	+26.0%
ROE	5.3%	8.1%	6.6%	9.0%	—
ROCE	7.8%	10.7%	9.9%	12.3%	—
Total Debt	₹137 Cr	₹134 Cr	₹63 Cr	₹61 Cr	-23.5%
Free Cash Flow	₹29 Cr	₹187 Cr	₹222 Cr	₹127 Cr	+64.0%

🟡 Revenue has been broadly flat over 3 years (-0.9% a year).

🟢 EBITDA has grown at 13.3% a year over 3 years.

🟢 EBITDA Margin has risen from 8.8% to 13.1% over 3 years (+4.4 pts).

🟢 PAT (Net Profit) has grown at 26.0% a year over 3 years.

🟢 EPS has grown at 26.0% a year over 3 years.

🟢 ROE has risen from 5.3% to 9.0% over 3 years (+3.7 pts).

🟢 ROCE has risen from 7.8% to 12.3% over 3 years (+4.5 pts).

🟢 Total Debt has shrunk at 23.5% a year over 3 years.

🟢 Free Cash Flow has grown at 64.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,345 Cr

Total Liabilities

₹1,302 Cr

Cash & Equivalents

₹39 Cr

Operating Cash Flow

₹172 Cr

Capex

-₹45 Cr

Shareholding (proxy)

Institutional Holding

11.4%

Insider Holding

56.2%

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

04 Jun 2026

Analyst Consensus

Recommendations

7 Buy · 4 Hold · 4 Sell

Target Price (Mean)

₹266.73

+29.5% vs CMP

Target Range

₹216 – ₹300

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

4 mixed2 general

Rallis India Limited (RALLIS.NS) Stock Price, News, Quote & History

Yahoo! Finance Canada, 09 Oct

Rallis India Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Rallis India Limited Just Recorded A 25% EPS Beat: Here's What Analysts Are Forecasting Next

Simply Wall Street, 23 JulAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Rallis India Share Price Falls 2% Despite Strong Q1 Profit

Univest, 21 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Buzzing Stock: Wanbury declines 5% after USFDA inspection; Rallis India slips 2% post Q2 earnings

TradingView, 21 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Rallis India shares: Nuvama retains 'Reduce' on Tata Group stock despite healthy Q1; check target price

Business Today, 22 JulAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Profitability

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑