The shares of the fertiliser manufacturer gained up to 3 percent after the company announced the acquisition of 10,68,96,146 equity shares of the NACL Industries Limited worth Rs 820 crore.
Price Movement
With a market capitalization of Rs 52,657.79 crore, the shares of Coromandel International Ltd were trading at Rs 1,787.30 per share, increasing around 1.41 percent as compared to the previous closing price of Rs 1,762.45 apiece.
Reason for Rise
The shares of Coromandel International Ltd have seen positive movement after announcing the acquisition of 10,68,96,146 equity shares, which is equivalent to 53.13 percent of NACL Industries Limited, at an average price of Rs 76.7 per share from the current promoter, KLR Products, the value of this acquisition is Rs 820 crore.
Furthermore, the proposed acquisition will position Coromandel as one of the leading players in the Indian Crop Protection industry with a wide range of technicals and pan India presence in the domestic formulation business. This will also help expand Coromandel’s scale and accelerate its entry into the contract manufacturing business.
Financial Performance
Looking forward to the company’s financial performance, revenue increased by 26 percent from Rs 5,464 crore in Q3FY24 to Rs 6,935 crore in Q3Y25. During the same period, net profit magnified by 122 percent from Rs 228 crore to Rs 508 crore.
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Government Initiatives
The government is strengthening infrastructure with projects like Ken-Betwa River Linking and Polavaram to expand irrigated land. It is collaborating with the fertilizer industry to ensure DAP availability for the rabi season and extending the Rs 3,500 per metric ton special package beyond December 31.
Raw Material Stability
Fertilizer raw materials remain stable, except for sulfur and sulfuric acid, driven by demand from China and Indonesia. Phosphoric acid (Q3) is set at $1,055, down $5 from Q2. With easing geopolitical tensions, overall raw material prices are expected to stay stable in Q4.
Company Performance
Coromandel International delivered a strong Q3, driven by higher volumes across segments. NPK production hit 8.4 lakh tons, with record phosphoric acid output.
Its new sulfuric acid plant exceeded 100 percent capacity, cutting costs. NPK primary sales grew 21 percent, consumption surged 73 percent, lowering channel inventory.
Management Comment
Challenges include under-recovery in subsidies for some products due to rising raw material costs. The company is actively engaging with the government for subsidy rate adjustments.
Despite this, management remains optimistic, citing growth driven by increased production capacity, new product launches, and market expansion strategies.
Company Profile
Coromandel International Ltd 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, biopesticides, specialty nutrients, organic fertilizers, etc
Written by Abhishek Singh
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