Coromandel International Ltd. share price target

CRIN reported a better than expected operating performance, despite rising input costs, due to backward integration and steps taken to lower the cost of raw material (particularly rock phosphate), while maintaining the same level of quality. It did so by establishing an alternative sourcing destination and with better efficiency. Raw material prices and volume growth in fertilizers remain a key monitorable going forward. Factoring in its 3Q performance, we have raised our FY22E earnings by 7%, but have maintained our FY23E/FY24E estimate. We value CRIN at...

In this note we have analyzed the volume performance for CRIN in 3QFY22, the trend in its key RMs, Rabi sowing in its key markets, and capacity expansion in sulfuric acid. The key insights are highlighted below:...

CRIN introduced 6 new products during H1FY22 and management expects to launch more products during rabi season. Management is expecting good traction in rabi season considering healthy reservoir levels and soil moisture conditions . We have positive outlook on CRIN, however we expect contraction in profitability due to the higher raw material costs and CRIN's limitation to pass the increased cost to customers. We maintain ACCUMULATE rating with revised target price of Rs.830 based on 15x FY23E adj. EPS....

Revenue grew by 14% YoY to Rs.3,664cr in Q1FY22 driven by growth in both fertilizer and crop protection chemicals (CPC). Fertilizer segment revenue grew 9% while CPC segment grew at a staggering 50% YoY. Backward integration and inventory savings benefitted nutrient segment while higher exports and B2B deals helped consumer product segment. Company launched six new products in CPC segment during the quarter. All of them are combination molecules. Four of them are insecticides while each of the remaining two are herbicide and fungicide....

We assign ACCUMULATE rating (from Under Review) on CRIN with TP of Rs Change in Estimates | Target | Reco 981 based on 18x FY23E EPS of Rs 54.5 (Previously 15x). We increase CRIN's...

The de-growth was mainly due to the planned maintenance shutdown of fertilizer plants and inventory build-up for the kharif season. The crop protection business saw a 16.5% growth YoY to Rs.515cr in...

Working Capital down to 20 days (from 95) CRIN reported mixed results with topline flat @ Rs28.5bn YoY (PLe 8% degrowth), but EBITDA declined 33% YoY @ Rs2.6bn (PLe Rs 3.6 bn) driven by RM cost inflation. The company became net cash due to robust cash generation led by healthy performance in FY21, higher inflow of subsidy (recd Rs50bn in FY) and lower working capital driven by 34-day decline in receivables. CP segment clocked healthy topline growth, but margins were under marginal stress due to pricing pressure from international...

Overall Fertilizer industry volumes grew 8% YoY in FY21 on the back of 19% volume growth in MOP; NPKS and SSP volumes grew 17% each for FY21. Urea, which accounted for 53% of the Fertilizer industry's volumes, was up by 5% YoY in FY21 (refer to Exhibit 1). CRIN's overall fertilizer volumes grew 11% YoY in FY21 on the back of 35%/20%/16% volume growth in urea/MOP/SSP. NPKS volumes were up 8%, while DAP volumes came in flat. CRIN leads the market in the NPKS Fertilizer segment and commands market...