Coromandel International Limited: Value Pick Stock June 2020, Update
Update
Q1 FY 2022-23 Earnings
Coromandel International Limited – India’s pioneers and leading agri-solutions provider has posted its Q1 FY23 numbers today.
Revenues
Revenue from operations of the company, on a consolidated basis stood at INR 5729.10 Cr for the Q1 FY2022-23 as against INR 4226.81 Cr for the previous quarter, registering a growth of 35.54 percent quarter-on-quarter basis. However, year-on-year top-line of the company grew by 56.37 percent (revenue of INR 3663.87 crore for the period ended 30 June 2021)
Among the segment-wise, Nutrient and other allied Business is the highest revenue generator for the company (INR 5110.30 Cr for Q1 FY23 v/s INR 3070.46 Cr for Q1 FY22) followed by Crop protection business (INR 660.74 Cr Q1 FY23 v/s INR 631.45 Cr for Q1 FY22)
Total Expenses of the Company –
INR 5114.84 Cr as on 30 June 2022,
INR 3240.15 Cr as on 30 June 2021,
INR 3913.92 Cr as on 31 March 2022
Profit After Tax
On a consolidated basis, the company’s PAT stood at INR 170.28 Cr for the period ended 30 June 2022 as compared to INR 99.17 Cr for the previous quarter, registering a growth of 71.71% Q-O-Q basis. However, profit after tax for the period ended 30 June 2021 stood at INR 110.42 Cr, a growth of 54.21% year-on-year basis.
EPS of the Company are as follows –
INR 17 as on 30 June 2022,
INR 11.51 as on 30 June 2021,
INR 9.87 as on 31 March 2022
Daily Chart –
coromandel share price ends at INR 1065.15, up 6.27% with a volume of 21,37,156 on the NSE when writing this content.
Coromandel International Limited is a value pick stock of Finblab (almost 2x returns in 24 months).
Final Comment: The Company has posted a good set of numbers whether Y-O-Y or Q-O-Q basis. Besides that it has maintained high ROE and ROCE. The management has also taken various strategic initiatives like strengthening the supply-chain on the back of significant backward integration and strategic procurement, and such initiatives will help it create a moat in the long run. Finblab has a POSITIVE view on the company.
Also Read: Q1 Numbers of Sterlite Technologies
4 June 2020
Coromandel International Limited (earlier Coromandel Fertilisers) is in the business of Fertilizers, Crop Protection, Specialty Nutrients, and Retail.
Coromandel International: History
Coromandel International Limited was incorporated in 1961, by the synergistic efforts of two major companies of the US namely (1) Chevron Chemical Company and (2) International Minerals and Chemicals Corporation and EID Parry Limited, a leading business house in India associated with agriculture.
Coromandel International: Business
- Fertilisers: Coromandel International manufactures a variety of fertilizers and markets it around 4.5 million tons making it a pioneer in its addressable markets. In fact, it is the 2nd largest phosphatic fertiliser player in India.
- Crop Protection: The Crop Protection department produces fungicides, insecticides, herbicides, and markets all these products in India and across the globe. Coromandel is the 2nd largest manufacturer of Malathion and is the major manufacturer of Phenthoate in Asia.
- Speciality Fertilisers: Coromandel International has entered into the speciality fertilisers market with the interest and objective to become a major player in the market by developing the market, entering into JVs & tie-ups, and developing manufacturing capabilities.
- Retail: The retail arm of Coromandel International was started in 2007 with two outlets in Andhra Pradesh. The objective of the comoant is to be the leader in farm solution business in the geography of choice, providing world-class Agri solutions, leading to the transformation of farming and satisfaction of farmers, suppliers, and all other external and internal stakeholders.
Coromandel International has multi-locational production facilities and manufactures & markets a wide range of (1) Crop Protection Products, (2) Phosphatic Fertilisers, (3) Speciality Nutrients like Micro Nutrients, Sulphur Pastelles, Water Soluble Fertilisers, and Organic Fertilisers.
The Company is managed by committed and competent professionals and is well-known for “fostering a climate of high performance and continuous improvement”
Manufacturing Units:
The company has 16 manufacturing units located in the states of Andhra Pradesh, Gujarat, Jammu and Kashmir, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, and Uttar Pradesh.
Achievements:
Coromandel International was ranked among the top 20 best companies to work for by Business Today and was also voted as one of the 10 greenest companies in India by TERI, reflecting its obligation to the environment and society.
Listed On
The shares of Coromandel International Limited are presently listed at Bombay Stock Exchange (BSE); CODE 506395 and National Stock Exchange (NSE) as COROMANDEL
Stock Info: Coromandel International
Share Holding Pattern
Financials: Coromandel International
Conclusion
Coromandel International is part of Murugappa Group and a subsidiary of EID Parry, which holds 62.82 percent of the equity in the company.
Promoters of the company are having more than 61 percent stake in the company.
Along with this, some of the top institutions like DSP Equity & Bond Fund, ICICI Prudential Life Insurance Company Limited, KOTAK Equity Hybrid Fund, L&T Mid Cap Fund, UTI (Focussed Equity Fund), and Groupe Chimique Tunisien is having more than 1 per cent stake in the company.
Covid-19 impact on the company’s business has been minimal as its business is part of essential services.
The India Meteorological Department (IMD) forecasts of normal monsoon bode well for the “Coromandel” business. Enhanced sowing during the Rabi season in the south has led to good demand for Agri inputs in the company’s key markets,” said the analyst.
On the technical front, Coromandel International Limited is trading well above its 20 EMA and 50 EMA on the daily chart.
Keeping the above-listed factors in mind, Coromandel International looks good at INR 635. Finblab recommends investing in the stock in a staggered manner for medium to long term.
Value Pick Stock: May 2020
Sterlite Technologies Limited
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