Rallis India: Market share gains ahead

New products, incremental exports and seed business growth to aid overall revenue

The Rallis India stock had moved up nine per cent last week on expectations of market share gains led by strong volume growth and product launches. A further traction in contract manufacturing and research with commercialisation of new molecules and recovery in the global agrochemical market should give a fillip to exports. This should translate into strong revenue and earnings growth.

The near-term trigger would be a recovery in volumes on the back of restocking of trade channels disrupted due to the implementation of the goods and services tax (GST).

Analysts at IDFC Securities said in FY18, domestic business growth (60 per