Coromandel International Ltd. share price target

Fertilizer business (64% of EBITDA): Shift to unique grades and firm raw material supply agreements to boost volumes, margin. Non-fertilizer business (36% of EBITDA): EBITDA share of high margin segment at 46% in FY18 (36% in FY16). Crop protection business to grow strongly backed by capacity augmen..

Coromandel Internationals (CRIN) 2QFY17 revenues were at Rs 35bn. Impact of lower realisation was negated by strong volumes ( 30% YoY). Higher share of manufactured complex fertilisers (98% vs. 87%) and lower RM cost boosted EBITDA to Rs 3.8bn ( 25%). Consequently, APAT was Rs 2.1bn ( 26%).

Results below estimates: Coromandel International's (CRIN) overall revenues fell 6.6% YoY to INR20.5b (est. of INR24.4b) in 1QFY17. EBITDA declined 5% YoY to INR886m (est. of INR1,075m), while margins improved 10bp YoY to 4.3% (est. of 4.4%). Nutrients to Crop Protection revenue mix stood at 82:18, while EBIT mix was 36:64. Margins in Fertilizer declined sharply on account of higher dealer discounts and inventory losses with the company aligning prices with the raw material price decline (government intervention). Consequently, PAT de-grew 48% YoY to INR79m (est. of INR323m) in 1QFY17. Subsidy outstanding...

BUY Coromandel International Ltd between Rs. 255-240 for the target of Rs. 285, 310.

Coromandel Internationals (CRIN) 1QFY17 EBITDA was below estimate at Rs 886mn (-5% YoY) mainly led by the price hit (impact undisclosed) on channel inventory following the governments mandate to reduce farmgate prices of complex fertilisers. Higher interest cost (high subsidy receivables) and lower other income dragged APAT to Rs 75mn (-49%).

Coromandel Fertilisers (CRIN) incorporated in 1964 is Subsidiary of EID Parry India Ltd which holds 60.81% of its equity. It is engaged in manufacturing of fertilizers, plant protection chemicals and specialty nutrients. The company also markets phosphogypsum and sulphur pastille. It is a part of the Rs.26900 Bn Murugappa Group. It exports its crop protection products across the globe like Latin America,...

Coromandel International (CRIN) reported robust EBITDA of Rs 2.0bn ( 25% YoY), led by higher gross margins. This was owing to a high share of manufactured fertilisers vs. trading. A lower tax rate further pushed up APAT to Rs 927mn ( 35%).

Encouraging outlook driven by normal monsoon forecast Results in-line: Coromandel's overall revenue grew 1% YoY to INR30.2b (vs. our estimate of INR28.7b) in 4QFY16. EBITDA grew 25% YoY to INR2b (vs. our...

Manufactured fertiliser margins fell to a level of Rs 1456/mt (v/s 9M Rs 1520/mt). Higher production of low margin DAP fertilliser and trading impacted fertiliser margins. Absolute EBITDA declined a sharp 30%. A 20% jump in interest outgo was somewhat offset by...