Rallis India Downgraded to 'Hold' Despite Positive Q3 Results and Bullish Technical Indicators

Rallis India, a midcap company in the pesticides and agrochemicals industry, has recently been downgraded to a 'Hold' by MarketsMOJO on October 17, 2024. This decision was based on the company's low Debt to Equity ratio, which is currently at 0 times.
Despite this, Rallis India has shown positive results in the September 2024 quarter, with its highest operating cash flow of Rs 269.07 crore and highest net sales of Rs 928.00 crore. Its PBDIT (Profit Before Depreciation, Interest, and Taxes) also reached its highest at Rs 166.00 crore.

Technically, the stock is in a bullish range and has shown improvement since October 16, 2024, generating a return of -1.85%. Multiple factors, such as MACD, Bollinger Band, KST, and DOW, also indicate a bullish trend for the stock.

With a ROE (Return on Equity) of 7.7, Rallis India is currently fairly valued with a price to book value of 3.7. It is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 62.07%, while its profits have increased by 53.4%. The PEG (Price/Earnings to Growth) ratio of the company is 0.9.

Rallis India also has a high institutional holding of 23.13%, indicating that these investors have better capability and resources to analyze the company's fundamentals compared to retail investors. Their stake in the company has also increased by 0.74% over the previous quarter.

Despite its market-beating performance with a return of 62.07% in the last year, Rallis India has shown poor long-term growth with net sales and operating profit growing at an annual rate of 8.00% and 7.80%, respectively, over the last 5 years.