Coromandel International Ltd. share price target

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...

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....

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...

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...

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.