Coromandel International Ltd - Q4FY20 Result update - Buy - Geojit

Coromandel International (CRIN) is one of the leading private sector fertilizer producers in the country with significant presence in South India. They are one of the leading producers of NPK and SSP grade fertilizers.

- Q4FY20 revenues grew by 9% YoY, led by 7% growth in Nutrient and other allied business and 22% growth in crop protection business (CPC).

- During the year EBITDA margins grew to 13.2% vs 10.9% in FY19 as increase in sale of high margin complex fertilizers, debottlenecking of plants and soft raw material prices aided margin expansion.

- The Company expects the recent ban on pesticides to be overturned, CRIN sells 4 out of the 27 molecules banned

- With the expectation of a normal monsoon, backward integration and new launches, we expect net profit CAGR of 12% over FY20-FY22E

- Hence we recommend a "Buy" and value CRIN at 18x FY22E EPS with a target of Rs.821.

Shares of COROMANDEL INTERNATIONAL LTD. was last trading in BSE at Rs.662.85 as compared to the previous close of Rs. 638.05. The total number of shares traded during the day was 42610 in over 2740 trades.

The stock hit an intraday high of Rs. 671.95 and intraday low of 641.35. The net turnover during the day was Rs. 28105458.

Source : Equity Bulls

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