⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
COROMANDEL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | COROMANDEL | Market Cap | 59,630 Cr. | Current Price | 2,023 ₹ | High / Low | 2,720 ₹ |
| Stock P/E | 27.5 | Book Value | 410 ₹ | Dividend Yield | 0.59 % | ROCE | 24.6 % |
| ROE | 17.5 % | Face Value | 1.00 ₹ | DMA 50 | 2,191 ₹ | DMA 200 | 2,207 ₹ |
| Chg in FII Hold | -0.72 % | Chg in DII Hold | 0.91 % | PAT Qtr | 530 Cr. | PAT Prev Qtr | 816 Cr. |
| RSI | 38.1 | MACD | -73.7 | Volume | 1,74,491 | Avg Vol 1Wk | 2,81,963 |
| Low price | 1,855 ₹ | High price | 2,720 ₹ | PEG Ratio | 3.45 | Debt to equity | 0.05 |
| 52w Index | 19.4 % | Qtr Profit Var | 0.86 % | EPS | 76.1 ₹ | Industry PE | 17.9 |
📊 Core Financials
- Revenue Growth: Stable, but PAT dropped (₹530 Cr vs ₹816 Cr)
- Profit Margins: EPS ₹76.1, decent profitability
- Debt Ratio: Very low (Debt-to-Equity 0.05)
- Cash Flows: Supported by consistent operations
- Return Metrics: ROCE 24.6%, ROE 17.5% — solid but not outstanding
💹 Valuation Indicators
- P/E Ratio: 27.5 (above industry PE of 17.9, overvalued)
- P/B Ratio: ~4.9 (premium valuation)
- PEG Ratio: 3.45 (high, growth priced expensively)
- Intrinsic Value: Current price ₹2,023 is near lower band (₹1,855), offering cautious entry
🏢 Business Model & Competitive Advantage
- Leading agrochemical and fertilizer company in India
- Strong distribution network and brand presence
- Low debt enhances financial resilience
- Dividend yield of 0.59% adds shareholder value, though modest
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹1,860–₹2,050 range (near support levels)
- Long-Term Holding: Suitable for investors seeking exposure to agriculture sector growth
- Risk: Weak earnings growth and high PEG ratio may limit upside
✅ Positive
- Low debt ensures strong financial stability
- Solid ROCE and ROE metrics
- Strong market presence in agrochemicals and fertilizers
⚠️ Limitation
- P/E ratio higher than industry average, indicating overvaluation
- Dividend yield is modest compared to peers
- Stock trading below DMA 50 & DMA 200, showing weak momentum
📰 Company Negative News
- Decline in FII holdings (-0.72%) shows reduced foreign investor confidence
- PAT dropped significantly from ₹816 Cr to ₹530 Cr
🌟 Company Positive News
- DII holdings increased (+0.91%), showing domestic investor support
- Debt-to-equity ratio at 0.05, indicating strong balance sheet
🏦 Industry
- Agriculture and agrochemical sector with long-term demand
- Industry PE at 17.9, COROMANDEL trades above this, showing premium valuation
- Government support for agriculture enhances sector growth prospects
🔎 Conclusion
- COROMANDEL offers stability with low debt and strong market presence
- Valuation is expensive compared to industry peers
- Entry near ₹1,860–₹2,050 is favorable for long-term conservative investors
- Best suited for portfolios seeking exposure to agriculture sector growth with moderate risk tolerance