2021-08-12 Coromandel Internati.. Geojit BNP Paribas

 

835.85 922.00 835.85
(-5.14%) 16.28 Accumulate

COROMANDEL INTERNATIONAL LIMITED

Revenue grew by 14% YoY to Rs.3,664cr in Q1FY22 driven by growth in both fertilizer and crop protection chemicals (CPC). Fertilizer segment revenue grew 9% while CPC segment grew at a staggering 50% YoY. Backward integration and inventory savings benefitted nutrient segment while higher exports and B2B deals helped consumer product segment. Company launched six new products in CPC segment during the quarter. All of them are combination molecules. Four of them are insecticides while each of the remaining two are herbicide and fungicide....

2021-07-05 Coromandel Internati.. Prabhudas Lilladhar

 

898.95 981.00 898.95
(-11.80%) 23.72 Accumulate

Company Update - Ripe for rerating - ACCUMULATE

We assign ACCUMULATE rating (from Under Review) on CRIN with TP of Rs Change in Estimates | Target | Reco 981 based on 18x FY23E EPS of Rs 54.5 (Previously 15x). We increase CRINs...

2021-05-04 Coromandel Internati.. Geojit BNP Paribas

729.35 941.00 729.35
(8.71%) Target met Buy

COROMANDEL INTERNATIONAL LIMITED

The de-growth was mainly due to the planned maintenance shutdown of fertilizer plants and inventory build-up for the kharif season. The crop protection business saw a 16.5% growth YoY to Rs.515cr in...

2021-05-03 Coromandel Internati.. Prabhudas Lilladhar

730.95 700.00 730.95
(8.48%) 11.72 Sell

Q4FY21 Result Update - Margin pressure building up but Working Capital improves substantially - REDUCE

Working Capital down to 20 days (from 95) CRIN reported mixed results with topline flat @ Rs28.5bn YoY (PLe 8% degrowth), but EBITDA declined 33% YoY @ Rs2.6bn (PLe Rs 3.6 bn) driven by RM cost inflation. The company became net cash due to robust cash generation led by healthy performance in FY21, higher inflow of subsidy (recd Rs50bn in FY) and lower working capital driven by 34-day decline in receivables. CP segment clocked healthy topline growth, but margins were under marginal stress due to pricing pressure from international...

2021-04-08 Coromandel Internati.. Motilal Oswal

770.05 1030.00 770.05
(2.97%) 29.90 Buy

Release of subsidies to aid CFO generation

Overall Fertilizer industry volumes grew 8% YoY in FY21 on the back of 19% volume growth in MOP; NPKS and SSP volumes grew 17% each for FY21. Urea, which accounted for 53% of the Fertilizer industrys volumes, was up by 5% YoY in FY21 (refer to Exhibit 1). CRINs overall fertilizer volumes grew 11% YoY in FY21 on the back of 35%/20%/16% volume growth in urea/MOP/SSP. NPKS volumes were up 8%, while DAP volumes came in flat. CRIN leads the market in the NPKS Fertilizer segment and commands market...

2021-02-15 Coromandel Internati.. Geojit BNP Paribas

 

768.40 914.00 768.40
(3.19%) Target met Buy

COROMANDEL INTERNATIONAL LIMITED

both the Nutrient and Crop Protection segments. The share of unique-grade fertilizers grew from 38% in Q3FY20 to 50% in Q3FY21 with aided the overall EBITDA margin expansion. The crop protection business (14.4% of total revenues) saw a 10.6% growth YoY to Rs.511cr in revenues during the quarter with new product launches contributing to revenue growth. The announcement by the finance ministry to allocate further Rs.65000cr to settle outstanding fertilizer subsidy dues will enable CRIN...

2021-02-03 Coromandel Internati.. Motilal Oswal

784.65 1071.00 784.65
(1.05%) 35.07 Buy

Strong operating show continues

Coromandel International (CRIN) reported a decent EBITDA performance (on a high base of last year) on the back of margin expansion in Crop Protection and better manufacturing and trading margins in the Fertilizer segment. Increasing phos acid prices (+35% YoY and +15% QoQ) and, consequently, a price hike in complex fertilizers would continue to be the key monitorable....

2021-01-18 Coromandel Internati.. Motilal Oswal

846.60 1090.00 846.60
(-6.34%) 37.47 Buy

Financials Snapshot (INR b) Y/E Mar 2021E 2022E 2023E Sales 146.9 158.8 173.0 EBITDA 22.0 23.3 ...

As per data from the Ministry of Fertilizers, CRINs overall volumes in 3QFY21 grew 21% YoY, driven by 128% YoY growth in trading volumes, whereas manufacturing volumes de-grew 3% YoY. Total phosphatic fertilizer volumes grew 8% YoY; growth was seen despite strong growth of 27% in the base quarter. Growth in the current quarter is driven by 13% YoY growth in NPK fertilizer, whereas DAP has de-grown 14% YoY. Manufacturing DAP volumes declined 62% YoY, whereas trading volumes increased 508% YoY in 3QFY21. NPK volumes grew 13% YoY on account of 6%...

2020-11-06 Coromandel Internati.. Geojit BNP Paribas

 

760.80 837.00 760.80
(4.22%) Target met Accumulate

COROMANDEL INTERNATIONAL LIMITED

We expect increasing share of unique-grade fertilizers and crop protection products to aid profit growth in the long term We downgrade our rating from Buy to Accumulate based on 17x FY22E EPS and a target price of Rs.837, as we feel that the current...

2020-11-03 Coromandel Internati.. Motilal Oswal

744.45 981.00 744.45
(6.51%) 23.72 Buy

Higher gross margin results in beat on EBITDA

Coromandel International (CRIN) reported a robust EBITDA performance, led by expansion in the gross margin, higher crop protection revenue, and margin expansion in the Fertilizer and Crop Protection segments. CRIN reported better-than-expected numbers in 2Q; factoring in the same,...

2020-09-23 Coromandel Internati.. Prabhudas Lilladhar

 

789.55 676.00 789.55
(0.42%) 14.74 Sell

Company Initiation - Time to Harvest - Peak Earnings and Valuations - REDUCE

CRIN An Integrated Play on Crop Protection ...................................................... 4 Story in Charts ....................................................................................................... 5 Investment Arguments ........................................................................................... 6 Phosphate fertilizer RM prices have bottomed out ............................................. 6 DAP affordability index @ 61 has bottomed out ............................................. 6 Raw material prices have bottomed out globally ............................................ 6 Rock Phosphate prices imitate Phosphoric acid price trend ....................... 7 Recovery in North American agriculture to drive demand ............................ 10...

2020-07-29 Coromandel Internati.. Geojit BNP Paribas

780.10 942.00 780.10
(1.64%) Target met Buy

COROMANDEL INTERNATIONAL LIMITED

CRIN saw significant revenue growth of 51% YoY to Rs.3213cr during the quarter as above average monsoon and growth in sowing activities saw large volume offtake. Volumes of key fertilizer products saw large off-take as NitrogenPhosphate-Potassium (NPK) and Di-Ammonium Phosphate (DAP) fertilizers saw an 80% growth in sales volumes. The Crop Protection segment saw its revenues grow by 55% YoY to Rs.420cr as exports and domestic business saw good performance Considering the good monsoon, focus on CPC business and...

2020-07-27 Coromandel Internati.. Motilal Oswal

775.00 908.00 775.00
(2.31%) Target met Buy

Higher fertilizer demand on better kharif season drives overall performance

27 July 2020 Coromandel International (CRIN) reported robust performance, led by higher manufacturing volumes (+61% YoY), higher crop protection revenue (off a lower base), and operating leverage. PAT more than quadrupled on higher EBITDA (2.1x YoY), lower tax rate, and lower interest cost. CRIN reported numbers in line with our estimates; thus, we maintain our earnings estimates for FY21/FY22E. Maintain 1QFY21 revenue grew 51% YoY. Overall fertilizer volumes grew 54% YoY on higher manufacturing volumes (+61% YoY) and trading volumes (+25% YoY). Thus, higher manufacturing fertilizer volumes and operating leverage led to a sharp 370bp EBITDA margin expansion to 12.8%. Nutrient and Other Allied segment revenues grew 49% YoY (to INR28.1b), with 240bp EBIT margin expansion (to 13.2%); segmental EBIT grew 83% YoY to INR3.7b. According to our calculations (assuming EBITDA/MT of INR300 for traded fertilizer), EBITDA/MT for manufacturing fertilizer stood at INR4,039/MT (+15% YoY; +8% QoQ) in 1QFY21. Plant Protection revenue grew 55% YoY (to INR4.

2020-06-30 Coromandel Internati.. Sharekhan 752.40 1000.00 752.40
(5.38%) Buy

Coromandel Int

Initiating coverage on Coromandel International with a Buy rating, valuing it at 20x FY2022 EPS with a PT of Rs. 1,000 Company among Indias top integrated agri solutions provider; significant backward integration drives margins, cashflows and return ratios...

2020-06-04 Coromandel Internati.. Geojit BNP Paribas

664.70 821.00 664.70
(19.29%) Target met Buy

COROMANDEL INTERNATIONAL LIMITED

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 FY20FY22E...

2020-05-27 Coromandel Internati.. Motilal Oswal

657.05 766.00 657.05
(20.68%) Target met Buy

Higher manufacturing volumes boost margin expansion???

27 May 2020 CRINs 4QFY20 revenue grew 9% driven by higher manufacturing volumes (+13% YoY) and lower RM costs (gross margins expanded 520bp to 35%), which in turn led to 51% YoY EBITDA growth. Maintain 4QFY20 revenue grew 9% YoY. Overall fertilizer volumes declined 4% YoY due to trading volumes plummeting 43% YoY. However, 13% YoY growth in manufacturing fertilizer volumes led to sharp 380bp EBITDA margin expansion to 13.6%. Nutrient and other allied segment revenues grew 7% YoY (to INR24.4b) with 400bp EBIT margin expansion (to 12.8%), due to higher manufacturing volumes (segment EBIT grew 56% YoY to INR3.1b). CRIN has contracted phosphoric acid at USD607/MT for 1QFY21 (v/s USD590/MT in 4QFY20). According to our calculations (assuming EBITDA/MT of INR300 for traded fertilizer), EBITDA/MT for manufacturing fertilizer stood at INR3,733/MT (+31% YoY; -3% QoQ) in 4QFY20. Plant protection revenue grew 22% YoY (to INR4.4b) with EBIT margin contracting 50bp (to 13.

2020-02-04 Coromandel Internati.. Reliance Securities 619.75 606.00 619.75
(27.94%) Target met Hold

Coromandel International -3QFY20 Result Update

We believe CRIN is one of the best bets in fertilisers space with robust FCF generation and best in-class return profile. We expect it to benefit from a better Rabi season and softening of RM prices in the near-term, while higher level of Backward integration would aid in sustainable margin expansion. The stock has been trading at ~16x of 1-Year forward EPS over the last 3 years and we value it at 15x FY22E EPS. Maintaining our Target Price of Rs606, we revise our...

2020-02-03 Coromandel Internati.. Motilal Oswal

619.75 736.00 619.75
(27.94%) Target met Buy

Higher manufacturing volumes support margins???

3 February 2020 3QFY20 revenues grew 8% driven by higher manufacturing volumes (+33% YoY), which in turn led to 42% YoY growth in EBITDA. While revenue was in line during the quarter, beat of 14%/18% in EBITDA/PAT, led to increase in earnings estimates by 9%/8% for FY20/FY21. Revenue grew 8% in 3QFY20 with overall fertilizer volumes growing a mere 6% due to 44% decline in trading volumes; however, 33% growth in manufacturing fertilizer volumes led to a sharp 320bp EBITDA margin expansion to 13.2%. Nutrient and other allied segment revenues grew 8% YoY (to INR28.4b) with 360bp EBIT margin expansion (to 12.8%), due to higher manufacturing volumes. According to our calculations, in 3QFY20, EBITDA/MT for manufacturing fertilizer stood at INR3,845/MT (+16% YoY; - 5% QoQ). Plant protection revenue grew 4% YoY (to INR4.6b) with EBIT margin contraction of 25bp (to 15.4%) on account of softness in mancozeb prices. For 9MFY19, revenue/EBITDA/PAT grew 3%/13%/33% to INR103b/INR13.4b/INR8.

2020-01-15 Coromandel Internati.. Motilal Oswal

583.80 677.00 583.80
(35.82%) Target met Buy

Higher manufacturing volumes and???

While trading volumes declined 47% YoY, fertilizer manufacturing volumes, which command higher margins, grew 34% YoY. In 2QFY20 too, CRIN witnessed margin expansion of 140bp YoY led by 9% growth in manufacturing fertilizer volumes (despite revenue decline of 3% YoY). Also, CRIN is expected to report record-high absolute 3Q EBITDA of INR3.8b for the Oct-Dec19 quarter, primarily due to (a) higher sales volume due to better acreage in the Rabi season, (b) benign raw material prices, (c) higher share of manufacturing fertilizer, and (d) cost savings on recently commenced phos acid plant. Further, manufacturing of di-ammonium phosphate (DAP) fertilizers surged 5.9x YoY in 3QFY20, while DAP trading declined a steep 86% YoY due to drop in phos acid prices. Acreage dipped marginally in AP by 1%, despite reservoir levels being at 92% of the storage capacity (v/s 48% last year). Acreage increased 30% YoY with reservoir levels of 70% (v/s 30% last year).

2020-01-01 Coromandel Internati.. Geojit BNP Paribas 539.00 656.00 539.00
(47.11%) Target met Buy

COROMANDEL INTERNATIONAL LIMITED

years on the back of growth in sales volumes. Government initiatives to double farmer income to drive demand for fertilizer and crop protection products. Direct Benefit Transfer scheme of the central government has eased pressure on the working capital cycle of CRIN....

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