Wednesday, September 17, 2008

Review: Rallis India Ltd.

In our article dt. 10.8.09, we had recommended to book partial profits in the script at Rs. 520/- and enter again if the price falls. Subsequently the stock went up to Rs. 600/-. It is now quoting around Rs.446/- as on 17.9.08. It is likely to consolidate around Rs. 410/- to 450/- range.
One can enter again around this price now.
It is quoting well below its intrinsic worth of Rs. 720/- to 1200/- and likely to give compounded returns of over 26% p.a. for the next 10 years.
It has also entered into strategic long term alliances with research based MNC agrochem companies for bringing in new molecules and new formulation technologies for commercialization in India. Rallis has 15% stake in Pharma and agrochem contract research firm Advinus Therapeutics-Bangalore (Formerly R&D division of Rallis) which can create great value for Rallis.Rallis is having surplus assets, value of which is maybe equivalent or more than its market capitalization.

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