COROMANDEL - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 4.3
| Stock Code | COROMANDEL | Market Cap | 70,979 Cr. | Current Price | 2,406 ₹ | High / Low | 2,720 ₹ |
| Stock P/E | 32.8 | Book Value | 410 ₹ | Dividend Yield | 0.52 % | ROCE | 24.6 % |
| ROE | 17.5 % | Face Value | 1.00 ₹ | DMA 50 | 2,273 ₹ | DMA 200 | 2,187 ₹ |
| Chg in FII Hold | 0.17 % | Chg in DII Hold | 0.02 % | PAT Qtr | 816 Cr. | PAT Prev Qtr | 508 Cr. |
| RSI | 45.1 | MACD | 8.88 | Volume | 2,58,916 | Avg Vol 1Wk | 2,32,244 |
| Low price | 1,590 ₹ | High price | 2,720 ₹ | PEG Ratio | 4.12 | Debt to equity | 0.05 |
| 52w Index | 72.2 % | Qtr Profit Var | 17.3 % | EPS | 75.9 ₹ | Industry PE | 20.3 |
📊 Core Financials:
- Quarterly PAT at 816 Cr. vs 508 Cr. shows strong sequential growth (+17.3% YoY).
- EPS of 75.9 ₹ reflects robust profitability.
- ROCE (24.6%) and ROE (17.5%) indicate healthy efficiency and shareholder returns.
- Debt-to-equity ratio of 0.05 highlights negligible leverage.
- Cash flows remain strong, supported by consistent demand in agrochemicals and fertilizers.
💹 Valuation Indicators:
- Current P/E of 32.8 is above industry average (20.3), suggesting premium valuation.
- P/B ratio ~ 5.9 (2,406 ₹ / 410 ₹), indicating stretched valuation relative to book value.
- PEG ratio of 4.12 highlights growth lagging valuation.
- Intrinsic value appears slightly lower than current price, limiting margin of safety.
🌱 Business Model & Competitive Advantage:
Coromandel International operates in fertilizers, crop protection, and specialty nutrients. Its competitive advantage lies in strong distribution networks, diversified product portfolio, and government support for agriculture. The company benefits from India’s agricultural dependency and rising demand for agrochemicals.
🎯 Entry Zone & Long-Term Guidance:
- Entry zone: 2,250–2,350 ₹ (near DMA 200 and support levels).
- Long-term holding: Attractive for investors seeking exposure to agriculture and agrochemicals. Accumulate on dips for steady compounding, but monitor valuations.
Positive
- Strong PAT growth (508 Cr. → 816 Cr.)
- EPS of 75.9 ₹ reflects robust profitability
- Healthy ROCE (24.6%) and ROE (17.5%)
- Debt-to-equity ratio of 0.05 shows negligible leverage
- FII holdings increased (+0.17%)
- DII holdings increased (+0.02%)
Limitation
- High P/E (32.8) compared to industry average (20.3)
- P/B ratio (~5.9) indicates stretched valuation
- PEG ratio of 4.12 shows growth lagging valuation
- Dividend yield at 0.52% is modest
Company Negative News
- Valuations remain stretched compared to peers
- Dividend yield relatively low despite strong profitability
Company Positive News
- Quarterly PAT surged to 816 Cr. from 508 Cr.
- FII and DII holdings increased slightly
- Strong 52-week performance (+72.2%)
- MACD positive (8.88) indicates bullish momentum
Industry
- Industry P/E at 20.3 indicates sector is moderately valued
- Fertilizer and agrochemical demand driven by agricultural cycles and government subsidies
- Competition from domestic and global agrochemical companies
Conclusion
⚖️ Coromandel International shows strong fundamentals with high ROE/ROCE, debt-free balance sheet, and robust profit growth. While valuations are stretched, the company remains attractive for long-term investors in agriculture and agrochemicals. Best accumulated near 2,250–2,350 ₹ for steady compounding.
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