COROMANDEL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | COROMANDEL | Market Cap | 53,601 Cr. | Current Price | 1,820 ₹ | High / Low | 2,720 ₹ |
| Stock P/E | 25.5 | Book Value | 423 ₹ | Dividend Yield | 0.66 % | ROCE | 25.4 % |
| ROE | 17.9 % | Face Value | 1.00 ₹ | DMA 50 | 1,994 ₹ | DMA 200 | 2,124 ₹ |
| Chg in FII Hold | -0.77 % | Chg in DII Hold | 1.50 % | PAT Qtr | 228 Cr. | PAT Prev Qtr | 530 Cr. |
| RSI | 33.4 | MACD | -48.9 | Volume | 5,75,435 | Avg Vol 1Wk | 5,23,460 |
| Low price | 1,786 ₹ | High price | 2,720 ₹ | PEG Ratio | 21.6 | Debt to equity | 0.07 |
| 52w Index | 3.69 % | Qtr Profit Var | -27.0 % | EPS | 68.1 ₹ | Industry PE | 15.8 |
📊 Financial Overview: Coromandel International shows moderate fundamentals with ROE at 17.9% and ROCE at 25.4%, reflecting decent efficiency. Debt-to-equity is low at 0.07, ensuring financial stability. Dividend yield is modest at 0.66%. Quarterly PAT dropped sharply from ₹530 Cr. to ₹228 Cr., showing a -27% decline, which raises concerns about earnings consistency.
💹 Valuation Indicators: Current P/E of 25.5 is above the industry average of 15.8, suggesting premium valuation. P/B ratio is ~4.3 (1820/423), which is moderate. PEG ratio of 21.6 signals weak growth prospects relative to valuation. Intrinsic value appears lower than current price, implying cautious accumulation.
🏢 Business Model & Advantage: Coromandel operates in agrochemicals and fertilizers, benefiting from India’s agricultural demand. Its competitive advantage lies in scale, diversified product portfolio, and strong distribution network. However, earnings volatility due to commodity cycles and input costs remains a challenge.
📈 Entry Zone: A favorable entry zone lies between ₹1,700–1,750, closer to support levels and below intrinsic value. Current price (₹1,820) is slightly above this zone, so staggered accumulation is advisable.
🔒 Long-Term Holding Guidance: Coromandel is a stable long-term play due to its strong industry presence and low debt. However, sharp profit decline and stretched valuations warrant caution. Long-term investors can hold selectively, monitoring earnings and commodity price trends.
Positive
- 🌟 Strong ROCE (25.4%) and ROE (17.9%)
- 🌟 Debt-light structure (0.07 debt-to-equity)
- 🌟 Diversified agrochemical and fertilizer portfolio
- 🌟 DII holdings increased (+1.50%)
Limitation
- ⚠️ Sharp quarterly profit decline (-27%)
- ⚠️ Elevated P/E (25.5) vs industry average (15.8)
- ⚠️ PEG ratio (21.6) signals weak growth prospects
- ⚠️ Dividend yield relatively low (0.66%)
Company Negative News
- 📉 PAT dropped from ₹530 Cr. to ₹228 Cr.
- 📉 FII holdings reduced (-0.77%)
Company Positive News
- 📈 DII holdings increased (+1.50%)
- 📈 Strong distribution network and market presence
Industry
- 🏦 Industry P/E at 15.8 reflects moderate valuations
- 🏦 Agrochemical sector growth supported by rising agricultural demand in India
Conclusion
✅ Coromandel International is financially stable with low debt and strong industry presence, but faces earnings volatility and stretched valuations. A better entry zone lies between ₹1,700–1,750. Long-term investors can hold cautiously, leveraging its agrochemical leadership while monitoring profit trends and commodity cycles.
Would you like me to also prepare a commodity cycle impact analysis to understand how raw material price fluctuations could affect its profitability?