both the Nutrient and Crop Protection segments. The share of unique-grade fertilizers grew from 38% in Q3FY20 to 50% in Q3FY21 with aided the overall EBITDA margin expansion. The crop protection business (14.4% of total revenues) saw a 10.6% growth YoY to Rs.511cr in revenues during the quarter with new product launches contributing to revenue growth. The announcement by the finance ministry to allocate further Rs.65000cr to settle outstanding fertilizer subsidy dues will enable CRIN...

Coromandel International (CRIN) reported a decent EBITDA performance (on a high base of last year) on the back of margin expansion in Crop Protection and better manufacturing and trading margins in the Fertilizer segment. Increasing phos acid prices (+35% YoY and +15% QoQ) and, consequently, a price hike in complex fertilizers would continue to be the key monitorable....

CRIN's 3QFY21 PAT came in at Rs3.34bn, a 2%/3.6% miss/beat on our/consensus expectations. This was due to the miss of 3.9%/197bps in CPC segment revenue/EBIT margin while operating costs were 1.2% lower vs. NB estimate. The result looks good on a YoY basis with revenue growth of 7.8% and EBITDA margin expansion of 95bps that aided PBT/PAT growth of 25.7%/ 26.2%. CRIN saw robust YoY growth in EBIT margin in both Nutrient and CPC segments. EBIT margin surged by 57bps/208bps YoY in Nutrient/CPC segments. During the concall, the management sounded upbeat about future growth prospects in both the segments based on favourable weather, soil moisture, water storage levels, improved farm incomes and...

As per data from the Ministry of Fertilizers, CRIN's overall volumes in 3QFY21 grew 21% YoY, driven by 128% YoY growth in trading volumes, whereas manufacturing volumes de-grew 3% YoY. Total phosphatic fertilizer volumes grew 8% YoY; growth was seen despite strong growth of 27% in the base quarter. Growth in the current quarter is driven by 13% YoY growth in NPK fertilizer, whereas DAP has de-grown 14% YoY. Manufacturing DAP volumes declined 62% YoY, whereas trading volumes increased 508% YoY in 3QFY21. NPK volumes grew 13% YoY on account of 6%...

We expect increasing share of unique-grade fertilizers and crop protection products to aid profit growth in the long term We downgrade our rating from Buy to Accumulate based on 17x FY22E EPS and a target price of Rs.837, as we feel that the current...

We upgrade Coromandel International (CRIN) to Buy after raising our PE-based target price (TP) by 13.4% to Rs911 following our 8.2%/7.8%/18.4% upward revision in FY21E-23E earnings. CRIN's 2QFY21 PAT came in at Rs5.89bn, a 5%/26% beat on our/consensus expectations. The beat on our estimate was due to CPC segment revenue/EBIT margin coming in 13.5%/626bps higher while operating costs were 7.9% higher vs. NB estimate. The result looks good on a YoY basis with earnings growth of 16.9%, EBITDA margin expansion of 361bps and PBT growth of 27.6% despite a 5.1% decline in revenue. CRIN saw robust YoY growth in EBIT margin in both Nutrient and CPC segments despite an 8.6% YoY decline in Fertlizer revenue. EBIT margin...

Coromandel International (CRIN) reported a robust EBITDA performance, led by expansion in the gross margin, higher crop protection revenue, and margin expansion in the Fertilizer and Crop Protection segments. CRIN reported better-than-expected numbers in 2Q; factoring in the same,...

CRIN An Integrated Play on Crop Protection ...................................................... 4 Story in Charts ....................................................................................................... 5 Investment Arguments ........................................................................................... 6 Phosphate fertilizer RM prices have bottomed out ............................................. 6 DAP affordability index @ 61 has bottomed out ............................................. 6 Raw material prices have bottomed out globally ............................................ 6 Rock Phosphate prices imitate Phosphoric acid price trend ....................... 7 Recovery in North American agriculture to drive demand ............................ 10...

CRIN saw significant revenue growth of 51% YoY to Rs.3213cr during the quarter as above average monsoon and growth in sowing activities saw large volume offtake. Volumes of key fertilizer products saw large off-take as NitrogenPhosphate-Potassium (NPK) and Di-Ammonium Phosphate (DAP) fertilizers saw an 80% growth in sales volumes. The Crop Protection segment saw its revenues grow by 55% YoY to Rs.420cr as exports and domestic business saw good performance Considering the good monsoon, focus on CPC business and...

We maintain Accumulate on Coromandel International (CRIN) after raising our PE-based target price (TP) by 10.9% to Rs792, following our 21.8%/10.9% upward revision in FY21-22E earnings. CRIN's 1QFY21 PAT came in at Rs2.5bn, a 14.9% miss on our estimate while a tad above consensus expectations. The miss on our estimate was due to CPC segment revenue/EBIT margin coming in 6%/353bps lower and operating costs being 7.1% higher vs. NB estimates. The result looks good on a YoY basis with revenue growth of 50.8%, EBITDA margin expansion of 367bps and PAT growth of 299%. CRIN saw robust YoY growth in revenue/EBIT margin in both Nutrient and CPC segments. This was driven by the massive 77% YoY growth in...

27 July 2020 Coromandel International (CRIN) reported robust performance, led by higher manufacturing volumes (+61% YoY), higher crop protection revenue (off a lower base), and operating leverage. PAT more than quadrupled on higher EBITDA (2.1x YoY), lower tax rate, and lower interest cost. CRIN reported numbers in line with our estimates; thus, we maintain our earnings estimates for FY21/FY22E. Maintain 1QFY21 revenue grew 51% YoY. Overall fertilizer volumes grew 54% YoY on higher manufacturing volumes (+61% YoY) and trading volumes (+25% YoY). Thus, higher manufacturing fertilizer volumes and operating leverage led to a sharp 370bp EBITDA margin expansion to 12.8%. Nutrient and Other Allied segment revenues grew 49% YoY (to INR28.1b), with 240bp EBIT margin expansion (to 13.2%); segmental EBIT grew 83% YoY to INR3.7b. According to our calculations (assuming EBITDA/MT of INR300 for traded fertilizer), EBITDA/MT for manufacturing fertilizer stood at INR4,039/MT (+15% YoY; +8% QoQ) in 1QFY21. Plant Protection revenue grew 55% YoY (to INR4.

Initiating coverage on Coromandel International with a Buy rating, valuing it at 20x FY2022 EPS with a PT of Rs. 1,000 Company among India's top integrated agri solutions provider; significant backward integration drives margins, cashflows and return ratios...

The Company expects the recent ban on pesticides to be overturned, CRIN sells 4 out of the 27 molecules banned With the expectation of a normal monsoon, backward integration and new launches, we expect net profit CAGR of 12% over FY20FY22E...

We maintain our Accumulate rating after raising our PE-based target price (TP) for Coromandel International (CRIN) by 26% to Rs714 (8.24% upside from CMP), following our 31%/26% upward revision in FY21-22E earnings. This is based on the good 4QFY20 results with PAT doubling YoY to Rs2.34bn - a beat of 40%/37% on consensus/NBIE estimates. The positive surprise was driven by the 17% growth in phosphatic sales (volume), 400bps/334bps beat in nutrient/CPC segment EBIT margins and 13.63% beat in CPC revenue, defying our expectation of lower volume/margin and the impact of lockdown in end Mar'20. During the 4QFY20 results concall, the management guided about healthy growth prospects and a favourable kharif crop in the...

27 May 2020 CRINs 4QFY20 revenue grew 9% driven by higher manufacturing volumes (+13% YoY) and lower RM costs (gross margins expanded 520bp to 35%), which in turn led to 51% YoY EBITDA growth. Maintain 4QFY20 revenue grew 9% YoY. Overall fertilizer volumes declined 4% YoY due to trading volumes plummeting 43% YoY. However, 13% YoY growth in manufacturing fertilizer volumes led to sharp 380bp EBITDA margin expansion to 13.6%. Nutrient and other allied segment revenues grew 7% YoY (to INR24.4b) with 400bp EBIT margin expansion (to 12.8%), due to higher manufacturing volumes (segment EBIT grew 56% YoY to INR3.1b). CRIN has contracted phosphoric acid at USD607/MT for 1QFY21 (v/s USD590/MT in 4QFY20). According to our calculations (assuming EBITDA/MT of INR300 for traded fertilizer), EBITDA/MT for manufacturing fertilizer stood at INR3,733/MT (+31% YoY; -3% QoQ) in 4QFY20. Plant protection revenue grew 22% YoY (to INR4.4b) with EBIT margin contracting 50bp (to 13.

We are raising our PE-based TP for Coromandel International (CRIN) by 34.7% to Rs630 (0.11% upside from CMP). This follows our 18.8/22.2/4.7% upward revision in FY20-22E earnings, respectively based on the healthy beat in 3Q results and management's positive comments during the 3Q results call. However, we maintain our Accumulate rating as we believe that the stock's 75% surge from August 19 lows has priced in the management's positive guidance for FY21 based on normal monsoon expectations and offers limited margin of safety in case of any setbacks. Other concerns include the pressure in CPC margins and its relatively higher dependence on technical grades of pesticides, including...

We believe CRIN is one of the best bets in fertilisers space with robust FCF generation and best in-class return profile. We expect it to benefit from a better Rabi season and softening of RM prices in the near-term, while higher level of Backward integration would aid in sustainable margin expansion. The stock has been trading at ~16x of 1-Year forward EPS over the last 3 years and we value it at 15x FY22E EPS. Maintaining our Target Price of Rs606, we revise our...

3 February 2020 3QFY20 revenues grew 8% driven by higher manufacturing volumes (+33% YoY), which in turn led to 42% YoY growth in EBITDA. While revenue was in line during the quarter, beat of 14%/18% in EBITDA/PAT, led to increase in earnings estimates by 9%/8% for FY20/FY21. Revenue grew 8% in 3QFY20 with overall fertilizer volumes growing a mere 6% due to 44% decline in trading volumes; however, 33% growth in manufacturing fertilizer volumes led to a sharp 320bp EBITDA margin expansion to 13.2%. Nutrient and other allied segment revenues grew 8% YoY (to INR28.4b) with 360bp EBIT margin expansion (to 12.8%), due to higher manufacturing volumes. According to our calculations, in 3QFY20, EBITDA/MT for manufacturing fertilizer stood at INR3,845/MT (+16% YoY; - 5% QoQ). Plant protection revenue grew 4% YoY (to INR4.6b) with EBIT margin contraction of 25bp (to 15.4%) on account of softness in mancozeb prices. For 9MFY19, revenue/EBITDA/PAT grew 3%/13%/33% to INR103b/INR13.4b/INR8.

While trading volumes declined 47% YoY, fertilizer manufacturing volumes, which command higher margins, grew 34% YoY. In 2QFY20 too, CRIN witnessed margin expansion of 140bp YoY led by 9% growth in manufacturing fertilizer volumes (despite revenue decline of 3% YoY). Also, CRIN is expected to report record-high absolute 3Q EBITDA of INR3.8b for the Oct-Dec19 quarter, primarily due to (a) higher sales volume due to better acreage in the Rabi season, (b) benign raw material prices, (c) higher share of manufacturing fertilizer, and (d) cost savings on recently commenced phos acid plant. Further, manufacturing of di-ammonium phosphate (DAP) fertilizers surged 5.9x YoY in 3QFY20, while DAP trading declined a steep 86% YoY due to drop in phos acid prices. Acreage dipped marginally in AP by 1%, despite reservoir levels being at 92% of the storage capacity (v/s 48% last year). Acreage increased 30% YoY with reservoir levels of 70% (v/s 30% last year).

years on the back of growth in sales volumes. Government initiatives to double farmer income to drive demand for fertilizer and crop protection products. Direct Benefit Transfer scheme of the central government has eased pressure on the working capital cycle of CRIN....