COROMANDEL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | COROMANDEL | Market Cap | 58,463 Cr. | Current Price | 1,982 ₹ | High / Low | 2,720 ₹ |
| Stock P/E | 27.0 | Book Value | 410 ₹ | Dividend Yield | 0.61 % | ROCE | 24.6 % |
| ROE | 17.5 % | Face Value | 1.00 ₹ | DMA 50 | 2,076 ₹ | DMA 200 | 2,160 ₹ |
| Chg in FII Hold | -0.77 % | Chg in DII Hold | 1.50 % | PAT Qtr | 530 Cr. | PAT Prev Qtr | 816 Cr. |
| RSI | 43.3 | MACD | -13.0 | Volume | 4,18,368 | Avg Vol 1Wk | 3,29,164 |
| Low price | 1,818 ₹ | High price | 2,720 ₹ | PEG Ratio | 3.39 | Debt to equity | 0.05 |
| 52w Index | 18.1 % | Qtr Profit Var | 0.86 % | EPS | 76.1 ₹ | Industry PE | 18.5 |
📊 Coromandel International shows solid fundamentals with ROE (17.5%) and ROCE (24.6%), supported by low debt-to-equity (0.05). EPS of ₹76.1 reflects strong earnings power, and dividend yield of 0.61% adds shareholder value. However, quarterly PAT dropped sharply (530 Cr vs 816 Cr), raising concerns about earnings volatility. Valuation appears stretched with P/E (27.0) above industry average (18.5) and PEG ratio (3.39), suggesting limited growth-adjusted value. Technical indicators (RSI 43.3, MACD -13.0) show weakness, with price trading below both 50 DMA (2,076 ₹) and 200 DMA (2,160 ₹).
🎯 Entry Zone: 1,950 ₹ – 2,000 ₹ (near support and below DMA levels)
📌 Long-Term Holding: Suitable for 2–3 year horizon. Strong fundamentals support sustainability, but earnings volatility and stretched valuations warrant cautious accumulation with partial profit booking near 2,150–2,200 ₹.
Positive
- Strong ROE (17.5%) and ROCE (24.6%) highlight efficiency.
- Low debt-to-equity (0.05) ensures financial stability.
- EPS of ₹76.1 supports earnings visibility.
- DII holdings increased (+1.50%), showing domestic institutional confidence.
Limitation
- Quarterly PAT dropped significantly (816 Cr → 530 Cr).
- High PEG ratio (3.39) indicates limited growth-adjusted value.
- Trading below 50 DMA and 200 DMA reflects weak technical trend.
- Decline in FII holdings (-0.77%) shows reduced foreign investor confidence.
Company Negative News
- Earnings pressure due to sharp quarterly PAT decline.
- Weak technical indicators (RSI, MACD) suggest bearish momentum.
Company Positive News
- Stable dividend yield supports investor returns.
- Strong efficiency metrics with low leverage.
- Domestic institutional investors increasing stake.
Industry
- Industry P/E at 18.5 is lower than Coromandel’s P/E (27.0), indicating premium valuation.
- Agribusiness sector remains resilient, supported by demand for fertilizers and crop protection products.
Conclusion
⚡ Coromandel International is fundamentally strong with efficient capital use and low debt. Entry around 1,950–2,000 ₹ offers valuation comfort. Long-term holding (2–3 years) is justified, but investors should monitor earnings volatility and technical weakness. Partial profit booking near 2,150–2,200 ₹ is advisable, with exit below 1,900 ₹ on heavy volume.
This structured HTML report balances Coromandel’s strong fundamentals with its earnings volatility and valuation risks. If you’d like, I can extend this into a peer benchmarking overlay against other agribusiness companies like Chambal Fertilizers or RCF to highlight relative positioning. Would you like me to prepare that next?