Counting losses in Rallis India shares post Q3 earnings? Here's what you should do

Rallis India shares tanked over 6 per cent on Thursday after the firm announced its earnings for the quarter ended December 2022. The arm of Tata Chemicals reported a 43 per cent fall in its December quarter net profit at Rs 22.55 crore against the net profit of Rs 39.55 crore in the year-ago period. Rallis India stock plunged 6.72% to Rs 236 against the previous close of Rs 245.50 on BSE. Earlier, the stock opened with a loss of 5.09 per cent at Rs 233. The stock has lost 20.53 percent in a year and fallen 3.36 percent in 2022. Total 0.40 lakh Rallis India shares changed hands amounting to a turnover of Rs 94.41 lakh on BSE. Market cap of the firm fell to Rs 4,580 crore  on BSE.

In terms of technicals, the relative strength index (RSI) of the stock stands at 50.9, signaling the stock is neither oversold nor overbought. Rallis India shares have a one-year beta of 0.7, indicating low volatility during the period. Shares of Rallis India are trading higher than the 100 day and 200 day moving averages but lower than 5 day, 20 day and 50 day moving averages.

Revenue from operations rose to Rs 630.39 crore  in the December quarter compared to Rs 628.08 crore in the same period of the previous fiscal.

"Our third quarter revenues witnessed 0.3 per cent growth over last year. This has been in the backdrop of erratic rainfall in the domestic market and headwinds in international business. During the quarter, our domestic crop protection business grew by 7.7 per cent, crop nutrition business by 22 per cent," Rallis India Managing Director and CEO Sanjiv Lal said.

Exports fell 6.5 per cent, primarily due to inventory build-up at the customer end, he added.

With sentiment in Rallis India turning weak after Q3 earnings, here's a look at what analysts said about the prospects of the stock in the upcoming trading sessions.

Himanshu Binani - Research Analyst, Prabhudas Lilladher said the Q3 earnings came below expectations.

"Rallis 3QFY23 results were below than our/cons expectations primarily led by subdued growth across all segments. We believe gross margins contraction was led by provisions of high cost inventory and sales return in the domestic market.  We would be re-visiting our estimates post the concall slated today. The stock is currently trading at 21/18xFY24/FY25 EPS. Maintain 'Buy' with TP of Rs 250," added Binani.

 Abhijeet from Tips2trade said, "Poor Q3FY23 results even on a YoY basis has resulted in a sharp downtrend in Rallis India stock price today.  Rs 245.5 will be a strong resistance. A daily close below  Rs 228 could lead to a sharp fall till  Rs 219-207 in the coming days."

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