The fertilizer industry plays a crucial role in India’s agricultural sector, with various companies contributing to the production and distribution of essential nutrients. This analysis will examine Coromandel International Ltd. and its standing relative to other key players in the fertilizer market.
Stock Price moment analysis
With the current market capitalization of Rs 65,253 crores, Coromandel International Ltd current market price is around Rs.2214.2 The stock has given around 83.17 percent returns in the past year, making it the fertilizer stock with the highest returns in the mid-cap segment.
Financials
The company has a strong financial growth of revenues growing by 27.5 percent YoY from Rs 3,996.25 crores in Q4FY24 to Rs 5,113.44 crores in Q4FY25. The company also has strong net profit growth of 261.59 percent YoY from Rs 160.31 crores in Q4FY24 to Rs 579.67 crores in Q4FY25.
The net profits of the company have grown by a CAGR of 9.11 percent for the past 5 years, and the revenues of the company have grown by 12.89 percent in the past 5 years.
The company is almost debt-free with the debt with the debt-to-equity ratio of the company standing at 0.07.and the ROCE Ratio of the company stands at 22.23 percent. This return on capital employed is the highest when compared to its mid-cap peers in the industry.
Recent strategic moves
During March, Coromandel International Ltd has acquired a majority 53 per cent stake in agrochemical firm NACL Industries Ltd for Rs. 820 Crores through which by combining Coromandel International Ltd extensive distribution network and deep industry expertise with NACL’s manufacturing capabilities, diversified product portfolio and large formulations presence, the company was setting the stage for a significant increase in operational scale in the segment.
During December 2024, Coromandel International Limited and Mahindra & Mahindra Limited’s Farm Equipment Sector (FES) business partnered together to extend Coromandel’s drone spraying services, Gromor Drive, to Indian farmers. This union aimed to transform the agricultural landscape of India by making drone spraying accessible to farmers, aiming to reduce their input costs, increase productivity, and improve farm profitability.
During September of 2024, Coromandel acquired an additional 8.82% equity stake in BMCC, taking its overall shareholding to 53.8 % in Senegal-based Baobab Mining and Chemicals, which is important for capturing the value chain and building self-sufficiency to achieve india’s market rock requirement, investment in rock phosphate mines assuring long term supply security for its phosphate fertiliser production.
The company is also looking to make a strong capex plan for manufacturing some of the raw materials to reduce the country’s dependence on imports from China. That provides an opportunity because global players of specialty nutrients are also looking for India sourcing. They are trying to shift the manufacturing source from China to India.
In conclusion, Coromandel International Ltd. demonstrates strong growth and financial health within the fertilizer industry. The company has delivered impressive returns, driven by substantial revenue and profit growth. Its near debt-free status, high ROCE, and strategic moves such as acquiring a majority stake in NACL Industries, partnering with Mahindra & Mahindra for drone spraying services, and increasing its stake in BMCC to secure long-term raw material supply indicate a proactive approach to expansion and securing its market position.
Written By Likesh Babu S
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