COROMANDEL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

🌾 Fundamental Analysis: Coromandel International Ltd (COROMANDEL) Fundamental Rating: 4.2

💰 Core Financial Insights

Earnings Power

EPS: ₹76.7 ➜ impressive per-share profitability

PAT surged 62.2% QoQ ➜ strong rebound in quarterly earnings

Returns

ROCE: 23.2%, ROE: 16.8% ➜ healthy capital efficiency

Financial Position

Debt-to-equity: 0.07 ➜ virtually debt-free

Dividend Yield: 0.48% ➜ low payout, reinvestment-focused

🧾 Takeaway: Company demonstrates strong earning momentum, clean balance sheet, and well-managed capital returns.

📊 Valuation Metrics

Indicator Value Interpretation

P/E Ratio 37.4 premium valuation over industry avg (26.1)

P/B Ratio ~6.63 (₹2,495 / ₹376) ➜ high asset valuation

PEG Ratio 9.56 very high ➜ pricing suggests future growth may be overstated

📉 Observation: While results are strong, valuation looks overheated, possibly driven by earnings spike and momentum.

🧬 Business Model & Strategic Advantage

Industry: Fertilizers, crop protection, and specialty nutrients

Moats

Integrated rural distribution network

R&D-backed product portfolio

High brand equity and strategic government relationships

Growth Drivers

Rising rural consumption

Digitization and farm efficiency push

Agri-exports from India gaining traction

📈 Ownership & Market Sentiment

FII Holding ↑ 3.67% ➜ bullish foreign sentiment

DII Holding ↓ 3.11% ➜ profit-booking or cautious repositioning

🔍 Technical Snapshot

RSI: 61.8 ➜ approaching overbought zone

MACD: +30.8 ➜ bullish momentum confirmed

Trading above both DMA 50 & 200 ➜ strong uptrend

✅ Suggested Entry Zone: ₹2,300–₹2,390 📌 Watch for pullback or stabilization before entry, especially near high RSI levels

📈 Long-Term Investment View

🌿 Strong play on India’s agricultural transformation

🧪 Stable business, tech-driven expansion, and rural demand insulation

📊 Steady compounder — suitable for low-volatility, long-term portfolios

⚠️ Due to rich valuations, patience will reward better entry timing. Accumulate on dips, ideally during broader sector corrections.

Want a deeper dive into fertilizer sector picks like Chambal Fertilizers or Rallis India? I can whip up a comparative matrix to spotlight strengths.

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