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This Rakesh Jhunjhunwala portfolio stock is down 39% from 52-week high: Good time to buy?

This Rakesh Jhunjhunwala portfolio stock is down 39% from 52-week high: Good time to buy?

Rallis India shares, which hit a 52-week high of Rs 336 on July 22, 2021, is currently trading at Rs 205.40, translating into a decline of 38.86 per cent.

Rakesh Jhunjhunwala held 1.38 crore shares or 7.14 per cent stake in the agrochemicals firm for the quarter ended June 2022.  His wife Rekha Jhunjhunwala owned 2.67 per cent or 51.82 lakh shares at the end of the last quarter. Rakesh Jhunjhunwala held 1.38 crore shares or 7.14 per cent stake in the agrochemicals firm for the quarter ended June 2022. His wife Rekha Jhunjhunwala owned 2.67 per cent or 51.82 lakh shares at the end of the last quarter.

Shares of Rallis India have tumbled 39 per cent from their 52-week high amid highly volatile domestic market affected by negative global cues. The stock, a portfolio component of ace investor Rakesh Jhunjhunwala, has fallen majorly from Rs 344.50 on June 18, 2021 to Rs 205.40 in the current session, amounting to a loss of 40.37 per cent during the period.

Rallis India stock, which hit a 52-week high of Rs 336 on July 22, 2021, is currently trading at Rs 205.40, translating into a decline of 38.86 per cent. Rakesh Jhunjhunwala held 1.38 crore shares or 7.14 per cent stake in the agrochemicals firm for the quarter ended June 2022.

His wife Rekha Jhunjhunwala owned 2.67 per cent or 51.82 lakh shares at the end of the last quarter. Together, the couple held 9.67 per cent stake in the Tata Group firm.

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80 foreign institutional investors (FIIs) held 1.17 crore shares or 6.02 per cent in Rallis India in the June quarter against 81 FIIs holding 1.18 crore shares or 6.08 per cent in the March quarter. 13 mutual funds held 12.15 per cent stake or 2.36 crore shares in the June quarter against 12 mutual funds holding 2.44 crore shares or 12.56 per cent stake in the March quarter of the previous fiscal.

10 financial institutions and banks owned 0.02 per cent or 35,199 shares in the June quarter. Their stake in the March quarter was unchanged.

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Rallis India's net profit fell 18.13 per cent to Rs 67.47 crore in Q1 from Rs 82.42 crore in the corresponding quarter of last fiscal. However, revenue from operations rose 16.51 per cent to Rs 862.78 crore in the June quarter from Rs 740.51 crore in the year ago quarter. EBITDA fell 7.4 per cent to Rs 113 crore in Q1 FY23 from Rs 122 crore in Q1 FY22.

Meanwhile, Rallis India stock fell 2.64 per cent to an intraday low of Rs 203 today against the previous close of Rs 208.50 after Q1 earnings. The stock is trading higher than the 5-day, 20-day and 50-day moving averages but lower than 100-day and 200-day moving averages.

Total 0.41 lakh shares of the firm changed hands amounting to a turnover of Rs 83.16 lakh on BSE. The market cap of the firm fell at Rs 3,994 crore on BSE.The stock has lost 37.29 per cent in a year and fallen 25.05 per cent in 2022.  However, in a month, the shares have gained 10.08 per cent.

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Here's a look at what analysts said on the outlook of Rallis India shares.

Manoj Dalmia, founder and director, Proficient Equities

"Rallis India, if sustains level currently, then it can retrace back to Rs 236 levels. The trend is not clear. It is witnessing some retracements. To continue, it must form higher highs and lows. Investors can accumulate with a long-term view at current levels."

Ravi Singh, vice President and head of Research, Share India

"Rallis India share price is witnessing profit booking after a massive rally in the counter. The stock is still under strong hands, well supported with robust volumes and may touch the levels of Rs 230 - Rs 240 in the coming trading sessions."

Rallis India is a subsidiary of Tata Chemicals and a part of the $100 plus billion Tata Group. It is one of leading agro sciences companies, with the most comprehensive portfolio of products/solutions for Indian farmers. It has marketing alliances with several multinational agrochemical companies.

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