One of India’s leading agri solutions providers who offers a diverse range of products and services across the farming value chain is in focus in the day’s trade after it receives a 20.06 percent upside as per Antique.
Stock Price Movement
With a market capitalization of Rs. 55,665 crores, On Tuesday the share of Coromandel Limited had reached an intraday high of Rs. 1902 per equity share, rising nearly around 0.35 percent from its previous day’s close price of Rs. 1888.85. The stock has retreated and is currently trading at Rs. 1896.8.
What Happened
Antique has maintained a “Buy” rating on Coromandel International (CRIN) with a target price of ₹2,280, indicating a 20.06% upside from its current market price of ₹1,899.
CRIN has signed a definitive agreement to acquire a 53% stake in NACL Industries at ₹76.7 per share for ₹8.2 billion in cash, valuing NACL at ₹15.5 billion, with an enterprise value of ₹20.2 billion, including a net debt of ₹4.2 billion as of September 30, 2024.
Additionally, CRIN plans to launch an open offer to acquire up to 26% of NACL’s equity share capital. The transaction is expected to be completed in the first half of FY26.
Also read: Why has BEL outperformed the Nifty India Defence Index?
Financial Performance
Compared to the FY-24 Q3, the total revenue of the company has increased by 27.63 percent from Rs 5,522.69 Crs to Rs 7,048.86 crs. The Operating profit of the company increased by 140.68 percent to Rs 357.84 Crs from Rs 721.77 crs. There was also an improvement in the operating profit margins of the company from 6.41 percent to 10.08 percent. The net profit of the company grew by 121.56 percent to Rs 230.98 Crs from Rs 511.77 Crs. The net profit margin rose to 7.15 percent from 4.14 percent.
Profitability
The company has a PE ratio of 32.14 whereas the industry PE ratio is 24.63, suggesting that the company is slightly overvalued. The ROE of the company is 13.45 percent, the ROCE is 19.19 percent, the ROA is 9.66 percent. The company has a debt-to-equity ratio of 0.06.
About the Company
Coromandel International Limited, incorporated in 1961, is a leading Indian agri-solutions provider. The company manufactures and markets fertilizers, specialty nutrients, crop protection products, and organic fertilizers. It operates around 750 rural retail outlets across India, serving over 3 million farmers. Coromandel is also among the largest neem-based bio-pesticide manufacturers globally.
Written by – Varun Nair
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