COROMANDEL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.2

📈 Positive

• 💰 Low debt-to-equity ratio of 0.05 ensures financial stability and minimal leverage risk.
• 📊 Strong return metrics — ROCE at 24.6% and ROE at 17.5% reflect efficient capital deployment.
• 📈 EPS of ₹75.9 supports strong earnings visibility and valuation strength.
• 📈 Quarterly PAT growth of 17.3% (₹816 Cr. vs ₹508 Cr.) shows solid operational momentum.
• 📈 FII and DII holdings increased, indicating institutional confidence.

⚠️ Limitation

• 📉 P/E of 29.1 is above industry average (22.7), suggesting premium pricing.
• 📉 PEG ratio of 3.66 indicates valuation may be stretched relative to growth.
• 📉 MACD at -17.3 and RSI at 43.5 reflect weak technical momentum.
• 📉 Trading below DMA50 and DMA200 (₹2,255 and ₹2,155), indicating short-term bearish trend.

📰 Company Negative News

• 📉 Stock down 48.2% from 52-week high, reflecting market caution or sectoral pressure.
• 📉 Technical indicators weak despite strong fundamentals, suggesting short-term downside risk.

🌟 Company Positive News

• 📈 Volume nearly double 1-week average suggests renewed investor interest.
• 📈 Consistent profitability and strong quarterly performance reinforce long-term growth potential.

🌾 Industry

• 🌿 COROMANDEL operates in the agrochemicals and fertilizers sector, benefiting from rural demand and government support.
• 📊 Industry P/E of 22.7 reflects moderate growth expectations and cyclical exposure to commodity pricing.

🧭 Conclusion

• 📌 Suggested entry zone: ₹2,050–₹2,100, near support and below DMA levels for better margin of safety.
• 🕰️ Long-term holding favorable due to strong fundamentals, high return ratios, and sectoral tailwinds.
• ⚖️ Monitor technical recovery and valuation metrics before aggressive accumulation.