InvestorQ : Why has Rallis moved up so sharply when the entire market is down in the year 2020?
Katherine Gonsalves made post

Why has Rallis moved up so sharply when the entire market is down in the year 2020?

Answer
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Rutuja Nigam answered.
4 months ago


Since the beginning of January 2020, Rallis has moved up by 32% at a time when the market overall is down by over 20%. The triggers appear to be largely fundamental, although the lockdown could have temporarily created challenges for the stock. For the March quarter, Rallis is expected to post 12% YOY growth in revenues amid continued growth from a robust Rabi season. Of course, this could be partly offset by disruption in logistics and shutdown of operations in March-end 2020. While the top line is expected to grow moderately, the real growth of over 200% could be seen in EBITDA, which is what the markets have been betting on. The markets are also betting positively on expansion of Metribuzin capacity by Rallis, which will be a big boost to the international business of Rallis.