Shares of this midcap company jumped around 3 percent in Monday’s trading session after announcing the opening of the Nano Fertiliser plant in Andhra Pradesh. In one year, the stock has delivered more than a 50 percent return to its shareholders.
With a market capitalization of Rs. 41,768 crores, the shares of Coromandel International Ltd started Monday’s trading session on a higher note at Rs. 1,405 compared to its previous close of Rs. 1,392.10. During the trading session, the shares hit a high of Rs. 1,431.65, gaining around 3 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 1,425 apiece.
Such a positive movement in the share was observed after the company in an exchange filing announced that it had unveiled a state-of-the-art Nano Fertiliser plant at its Kakinada complex in Andhra Pradesh. Coromandel’s Kakinada unit produces a wide range of NPK grades with an annual capacity of 2 million MT of fertilisers and caters to the needs of farming communities across India.
With the commissioning of the new Nano facility at its Kakinada complex, Coromandel has forayed into new-generation fertilisers, which have the potential to revolutionise Indian agriculture.
Furthermore, the company stated that the new Nano Fertilizer Plant has the capacity to produce 1 crore bottles of Nano fertilisers per annum and can be scaled up for higher volumes besides producing multiple ranges of Nano fertilisers.
Moreover, Coromandel has developed Nano fertilisers like Nano DAP and Nano Urea through its in-house Research and Development Center at IIT Bombay-Monash Research Academy and has also set up a Nano Technology Center at Coimbatore to focus on Nano application in agriculture and to establish quality for the Nano range of products.
Looking at the company’s financial statements, the revenue decreased by 28 percent from Rs. 5,464.15 crores during the December quarter to Rs. 3,912.72 crores in the March quarter. In addition, the net profits also declined by 28 percent from Rs. 228.11 crores to Rs. 163.91 crores during the same period.
The company intends to introduce novel molecules via captive and in-licensing arrangements. Concurrently, it aims to broaden its retail store presence in emerging markets. Further, the company aims to improve its operational efficiency by increasing fertilizer plant capacity and backward integration capabilities.
Additionally, the company has invested in drone company Dhaksha, which has a strong order book of around Rs 250 crores from the Defence and Agriculture segments.
Headquartered in Chennai, Coromandel International was incorporated in 1961. The company is one of India’s leading agri-solutions providers. It offers a diverse range of products and services across the farming value chain. It specializes in fertilizers, crop protein, bio-pesticides, speciality nutrients, organic fertilizers, etc.
Written By Vaibhav Patil
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