Rallis India Limited (RALLIS) AI Stock Analysis

• Market Cap: ₹53.43B
• Dividend Yield: 0.92%
• Average Volume (3M): 30.51K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 1.42
• Revenue Growth: 0.91%
• EPS Growth: 18.12%
• Country: IN
• Employees: 1,657
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 1.45
• Shares Outstanding: 194,468,900
• 10 Day Avg. Volume: 39,613
• 30 Day Avg. Volume: 30,508
• PEG Ratio: -2.24
• Price to Book (P/B): 2.26
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 19.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ₹289.00 ▲(5.46% Upside)

The score is primarily supported by steady financial performance, strong cash conversion, and conservative leverage, which together outweigh modest profitability softening. Technicals are mixed (short-term strength but negative MACD and below longer-term averages), and valuation is a headwind due to a higher P/E and low dividend yield.

Positive Factors

Strong cash generation

Reliable operating cash flow and rising free cash flow provide durable funding for capex, working capital, and strategic investments. This reduces dependence on external debt, supports contract manufacturing scale-ups, and underpins shareholder returns and R&D over the next several quarters.

Conservative balance sheet

Low leverage and a strong equity base improve financial resilience in a cyclical agricultural market. This structural strength gives management flexibility to invest in seeds, expand formulation capacity, or absorb input cost shocks without compromising long-term operations or credit standing.

Stable margins and revenue growth

Consistent top-line growth with steady gross and EBITDA margins indicates durable operational efficiency and cost control across crop protection and seeds. Sustained margins suggest the company can maintain reinvestment levels and fund margin-accretive product development over multiple seasons.

Negative Factors

Declining return on equity

A falling ROE signals that asset utilization or profitability is weakening, which can erode long-term shareholder value if not reversed. Persisting ROE decline may constrain the company's ability to generate attractive returns from future investments or justify capital allocation decisions.

Net profit margin pressure

Eroding net margins from rising operating costs reduce retained earnings and free cash flow resilience. If structural, this pressures room for R&D, marketing for seed adoption, and margin-enhancing initiatives, requiring either pricing power gains or sustained efficiency improvements to restore profitability.

Agriculture sector seasonality and input volatility

Dependence on cropping cycles and raw-material-driven pricing exposes revenue and margin variability across seasons. This structural cyclicality forces conservative inventory and working-capital management and can compress margins if input inflation or poor monsoons persist over multiple quarters.

Rallis India Limited Business Overview & Revenue Model

Company Description

Rallis India Limited manufactures and markets agri-input primarily in India and internationally. The company offers crop protection products, including insecticides, herbicides, fungicides, and bio pesticide; organic fertilizers and plant growth nutrients; seeds, such as maize, watermelon, cauliflower, cabbage, bottle gourd, cucumber, bitter gourd, chilli, okra, tomato, millet, paddy, and cotton; and animal nutrition products. It also provides household products, such as Termex, an insecticide for termite control; Sentry, a synthetic pyrethroid insecticide; and Ralligel plus, a chemical spray for cockroach control. In addition, the company offers contract manufacturing services for crop protection chemicals, specialty chemicals, polymers, and intermediates. It sells its products through a network of dealers and retailers. The company was incorporated in 1948 and is based in Mumbai, India. Rallis India Limited is a subsidiary of Tata Chemicals Limited.

How the Company Makes Money

Rallis India Limited generates revenue primarily through the sale of its agrochemical products, which include a wide range of crop protection chemicals and seeds. The company's revenue model is supported by direct sales to farmers, distributors, and retail outlets, as well as partnerships with agricultural cooperatives and institutions. Key revenue streams include the sale of branded products in both domestic and international markets, with a significant focus on research and development to innovate new formulations and solutions. The company also benefits from strategic alliances and collaborations with other agricultural firms, enhancing its market reach and product offerings. Additionally, RALLIS may engage in contract manufacturing and licensing agreements, further diversifying its income sources.

Rallis India Limited Financial Statement Overview

Summary

Stable revenue growth and consistent gross/EBITDA margins support a solid operating profile. Strength is reinforced by strong operating cash flow and growing free cash flow, plus low leverage. Offsetting this, net margin and return on equity have slightly declined, indicating some profitability pressure.

Income Statement

Rallis India has shown moderate revenue growth with a slight increase in revenue from previous years. The gross profit margin is stable, indicating good cost management. However, the net profit margin has slightly declined, which suggests an increase in operating expenses or other costs. EBIT and EBITDA margins have remained consistent, reflecting stable operational efficiency.

Balance Sheet

The company maintains a healthy equity ratio, indicating strong reliance on equity financing. The debt-to-equity ratio is low, reflecting prudent financial leverage. However, return on equity has experienced a slight decline, pointing to a need for improved profitability or asset utilization.

Cash Flow

Rallis India has demonstrated consistent operating cash flow generation, which is a positive indicator of its liquidity position. The free cash flow has grown, showing efficient capital expenditure management. The operating cash flow to net income ratio is strong, indicating effective conversion of profits into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	28.37B	26.63B	26.33B	29.67B	25.91B	24.19B
Gross Profit	10.31B	5.71B	10.45B	10.01B	9.61B	9.35B
EBITDA	3.68B	3.19B	3.28B	2.33B	3.03B	3.74B
Net Income	1.72B	1.25B	1.48B	920.00M	1.64B	2.29B
Balance Sheet
Total Assets	0.00	29.74B	30.03B	27.98B	28.58B	25.89B
Cash, Cash Equivalents and Short-Term Investments	4.37B	4.37B	2.79B	2.71B	2.73B	3.36B
Total Debt	0.00	630.00M	1.34B	1.37B	927.42M	756.11M
Total Liabilities	-19.04B	10.70B	11.74B	10.68B	11.61B	9.97B
Stockholders Equity	19.04B	19.04B	18.29B	17.30B	16.97B	15.91B
Cash Flow
Free Cash Flow	0.00	2.21B	1.87B	289.20M	-192.01M	483.00M
Operating Cash Flow	0.00	2.95B	2.69B	2.17B	1.66B	2.17B
Investing Cash Flow	0.00	-2.14B	-1.02B	-1.42B	-1.04B	-1.62B
Financing Cash Flow	0.00	-800.00M	-1.84B	-410.50M	-614.43M	-674.20M

Rallis India Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 274.05
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RALLIS, the sentiment is Neutral. The current price of 274.05 is above the 20-day moving average (MA) of 259.61, above the 50-day MA of 262.61, and below the 200-day MA of 297.39, indicating a neutral trend. The MACD of 1.84 indicates Negative momentum. The RSI at 59.31 is Neutral, neither overbought nor oversold. The STOCH value of 89.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:RALLIS.

Rallis India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHARDACROP	78 Outperform	₹93.81B	16.58	―	1.02%	33.23%	107.47%
GNFC	70 Outperform	₹68.54B	10.78	―	3.68%	-7.53%	42.74%
GSFC	68 Neutral	₹73.46B	10.99	―	2.80%	15.25%	26.49%
RALLIS	63 Neutral	₹53.43B	31.99	―	0.92%	0.91%	18.12%
RCF	62 Neutral	₹75.77B	24.25	―	0.93%	-3.19%	59.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NFL	45 Neutral	₹40.59B	38.53	―	1.77%	-7.78%	-70.89%

Rallis India Limited Corporate Events

Rallis India Seeks Shareholder Nod via E-Voting to Appoint Independent Director

Rallis India Limited has announced that it has issued a postal ballot notice to shareholders and activated an electronic voting process to seek approval for the appointment of Mahesh Kumar Girdhar as an independent director through a special resolution. The company has published the postal ballot and e-voting information in leading English and Marathi newspapers and made the notice available online, underlining its compliance with SEBI listing norms and Companies Act requirements while reinforcing corporate governance and shareholder participation in key board-level decisions.

Rallis India Appoints Mahesh Girdhar as Independent Director

Rallis India Limited, a prominent player in the agricultural sector, has announced a significant change in its board of directors. The company has appointed Mr. Mahesh Girdhar as an Additional Director in an independent capacity for a term of five years, starting from December 10, 2025. This strategic move, subject to shareholder approval, is expected to enhance the company’s governance and strategic direction, potentially impacting its market position and stakeholder relations positively.