Religare Capital has maintained 'Hold' on Rallis India (RALI) after the company declared its second quarter results. The stock broker fixed price target at Rs 210.

Commenting on the results, Religare said, ''RALI's Q2FY16 revenues dropped 21% year-on-year  (YoY) to Rs 5 billion, much below our estimate of Rs 6.5 billion, mainly due to a decline in the international business and the domestic seeds segment. EBITDA margins beat estimates with a 17bps YoY increase to 19.3% due to lower RM cost, but the sharp revenue decline took PAT below expectations at Rs 573 million (-22% YoY).''

Commenting on the investment rationale, the stock broker said,  ''We cut PAT forecasts for FY16, FY17 and FY18 by 16.5%, 12.4% and 10% and revise our Sep'16 TP down to Rs 210 from Rs 230. We cut our FY16, FY17 and FY18 revenue forecasts by 12.9%, 10.3% and 8.7% respectively. RALI's poor results and the challenging market conditions will keep the stock subdued. Maintain Hold.'' 

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