Chambal Fertilisers & Chemicals Ltd. share price target

Urea sales from new capacity boosts performance Chambal reported a strong 4QFY19 on the back of the newly commissioned Urea plant in Gadepan-3. Sales/EBITDA/Adj. PAT growth came in at 147.0/458.5/415.7% YoY to ` 26.1/4.1/2.4bn respectively. Gross margin contraction was due to higher RM prices, margins contracted by 730 bps YoY. The company reported a PAT of ` 919mn on account of an exceptional item of ` 1.97bn, which arose as the Ministry of Chemicals has not paid the...

Our analysis of product-wise subsidy shows that subsidy on DAP has increased the most - by Rs1,465/MT (+16% yoy). On the other hand, subsidy for MOP has fallen by Rs763/MT (-10% yoy). Subsidy for all other grades of P&K; fertilisers has increased by ~5-10% yoy. Taking into account the new subsidy rates and the ~10% price hike, which the industry has taken in DAP and other NPK grades of fertilisers from Feb'18 onwards, gross margin in DAP and most other complex fertilisers remains broadly unchanged. We remain positive on companies that are backward integrated in phosphoric acid and have higher revenue share from NPK fertilisers, as they enjoy brand equity and less...

With no new capacity addition during the last 2 decades , India is now a urea deficit market where it produces 24 Mn MT against demand of 32 Mn MT. With a view to bridge this gap & government's favorable New Investment Policy, Chambal is setting up a 1.34 MTPA Brownfield ammoniaurea plant at Gadepan, Rajasthan at a capex of USD 917 Mn of which USD 711 Mn will be funded through debt, is expected to commission by January 2019. With this expansion, existing capacity of Urea will increase from 2.01 MTPA to 3.35 MTPA, further strengthening Chambal's leadership position in the industry. Long-term gas supply contract with GAIL - Ensure availability of gas for existing and new unit Company has entered into a long term natural gas purchase agreement with GAIL for supply of 24,955 bn British Thermal Units annually. The supply of gas will commence on April 1, 2018 and will last for nine years . The gas can also be used in existing plants...

Chambal Fertilisers (CHMB) reported revenue of Rs 10.7bn (-24% YoY) in 4QFY17, led by lower volumes (-14%, urea plant shutdown, a drop in trading vols) and lower fertilisers? realisations. EBITDA was at Rs 846mn ( 1%). Lower depreciation and interest costs boosted APAT to Rs 587mn (vs loss of Rs 151mn YoY).

Chambal Fertilisers (CHMB) reported revenues of Rs 24.3bn (-14% YoY) in 3QFY17, mainly led by lower realisations from the fertiliser segment. Gross margins stood at 31.2% (-435 bps), owing to a maintenance shutdown of 31 days in one urea unit, and muted profits from the shipping segment. EBITDA was at Rs 2.4bn (-16%).

Chambal Fertilisers (CHMB) reported revenues of Rs 19bn (-19% YoY) mainly led by lower fertilisers? realisation. EBITDA was at Rs 2.4bn ( 3%) despite taking the adequate hit for the cut in farmgate prices of complex fertilisers. Interest cost was higher at Rs 890 mn ( 21%) owing to higher subsidy receivables. However, it was negated by lower depreciation (-30%, change in asset life) and APAT was Rs 1.4bn.

Chambal Fertilisers (CHMB) reported a decent results despite challenges in the agriculture sector. Higher fertiliser volumes and improvement in the shipping division led to an EBITDA of Rs 2.5bn ( 7.3% YoY). Lower other income resulted in an APAT of Rs 1.3bn (-8%). However, the company reported net loss of Rs 1.6bn, as it provided Rs 3bn towards the diminution of investments in the IT business in the US.

9 Results modestly ahead of estimates led by improved profitability of shipping and fertiliserdivisions.SignificantlylowerotherincomepulledadjustedPATdownby8%yoy (in line with our estimates). Gross margins were steady qoq at 36%. Other income...

In a quarter marred by below average monsoon, Chambal Fertilisers (CHMB) reported an EBITDA of Rs 2.0bn (-20% YoY). Higher other income, lower interest cost (lower farm receivables) and lower tax rate partly boosted APAT to Rs 1.1bn (-3% YoY).

Robust Q1FY16: Chambal beat our estimates significantly helped by huge rise in shipping andfertilizerbusinessprofitabilityandmuchhigherotherincome.Revenuesgrew22%on higher production of urea and trading in agriinputs, and improved shipping freight rates....

at the PAT front. The numbers were weak at the operating front following weaker than estimated shipping division profitability and one off expenses related to urea plant shutdown. Software vertical continues to reel under losses and management guides this...

Chambal Fertilisers (CHMB) 3QFY15 EBITDA was muted at Rs 2.3bn (-2% YoY) led by lower profits in the agri trading biz. Lower depreciation (change in accounting policy), lower interest cost (lower farm receivables/inventory) and higher other income boosted PAT to Rs 1.4bn ( 60% YoY).