Coromandel International - No sign of sector's woes receding - Kotak

Coromandel's 4QFY13 results were below estimates, led by lower margins and higher-than-expected interest costs. Working capital remains stretched due to a delay in subsidy payments. Opening inventory (complex fertilizers) in FY2014E at 5-6 mn tons is higher than ~3 mn tons of opening inventory in FY2013. We expect pressure on margins to continue well into 2QFY14.

We have reduced estimates; retain SELL with a revised target price of Rs150 (Rs170 earlier).

Source : Equity Bulls

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