Rallis India Breakout Ahead Of Q1 Results: SEBI RAs Signal Buy On Declines

Rallis India, a Tata Group company, rose 2% on Monday ahead of its first-quarter (Q1FY26) earnings report. 

In FY25, the company reported revenue of ₹2,662.9 crore with a net profit of ₹125.1 crore, showing modest top-line growth but pressure on margins.  

SEBI-registered analyst Deepak Pal noted that Rallis India is showing strong bullish momentum on the daily chart, with the stock maintaining its uptrend after forming a bottom at ₹196 on April 7.

The stock has consistently traded above its 14-day Exponential Moving Average (EMA), which has acted as a reliable support zone. After testing a high of ₹378.70 on Oct 16, 2024, it corrected significantly but has since been forming higher highs and higher lows.  

The weekly chart also shows the Rallis stock taking good support near its 50-day moving average. Technical indicators like RSI (70), MACD, and Parabolic SAR support continued upside.  

Considering the strong structure on both daily and weekly timeframes, Pal suggests buying on dips towards ₹325–₹330 with a positional stoploss at ₹300 and potential upside targets of ₹395–₹400 in the medium term. 

Fundamentally, the company has a strong balance sheet, maintains an EBITDA margin of 10% and a return on capital employed (RoCE) near 10%. With a high Piotroski score (8/9), the stock reflects strong financial quality, but valuations are relatively expensive (P/E 50x trailing). Pal concluded that Rallis is suited for long-term investors who understand cyclical agro trends and can tolerate moderate volatility.

Analyst Vinay Taparia also noted the breakout in Rallis and suggested buying on declines at ₹335, with a target of ₹380. He advised exits on a close below ₹330. 

Rallis shares have gained 18% year-to-date (YTD).

For updates and corrections, email newsroom[at]stocktwits[dot]com.