⚠ 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: 4.0
| Stock Code | COROMANDEL | Market Cap | 65,164 Cr. | Current Price | 2,218 ₹ | High / Low | 2,720 ₹ |
| Stock P/E | 30.1 | Book Value | 410 ₹ | Dividend Yield | 0.54 % | ROCE | 24.6 % |
| ROE | 17.5 % | Face Value | 1.00 ₹ | DMA 50 | 2,284 ₹ | DMA 200 | 2,215 ₹ |
| Chg in FII Hold | -0.66 % | Chg in DII Hold | 0.81 % | PAT Qtr | 530 Cr. | PAT Prev Qtr | 816 Cr. |
| RSI | 40.9 | MACD | -15.2 | Volume | 47,784 | Avg Vol 1Wk | 2,40,885 |
| Low price | 1,590 ₹ | High price | 2,720 ₹ | PEG Ratio | 3.77 | Debt to equity | 0.05 |
| 52w Index | 55.6 % | Qtr Profit Var | 0.86 % | EPS | 76.1 ₹ | Industry PE | 18.4 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT declined from 816 Cr. to 530 Cr., showing short-term weakness despite long-term stability.
- Profit Margins: ROE at 17.5% and ROCE at 24.6% indicate healthy profitability and efficient capital use.
- Debt Ratios: Debt-to-equity at 0.05 highlights a near debt-free balance sheet.
- Cash Flows: Dividend yield of 0.54% is modest, suggesting reinvestment focus over high payouts.
💹 Valuation Indicators
- P/E Ratio: 30.1 vs Industry PE of 18.4, showing premium valuation.
- P/B Ratio: Current Price 2,218 ₹ / Book Value 410 ₹ ≈ 5.41, relatively high.
- PEG Ratio: 3.77, indicating growth is priced expensively.
- Intrinsic Value: Estimated fair value around 2,050–2,100 ₹, making current price slightly above fair zone.
🏢 Business Model & Competitive Advantage
- Coromandel International is a leading agri-input company with strong presence in fertilizers, crop protection, and specialty nutrients.
- Competitive advantage lies in diversified product portfolio, distribution network, and strong rural penetration.
- Government support for agriculture and rising demand for crop protection products provide long-term growth drivers.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 2,050–2,100 ₹, closer to intrinsic value and near support levels.
- Long-Term Holding: Strong fundamentals, low debt, and diversified business model make it suitable for long-term investors, though valuation is on the higher side.
✅ Positive
- Debt-light structure with debt-to-equity at 0.05.
- Strong ROCE and ROE reflect efficient capital utilization.
- Diversified agri-input portfolio with strong market presence.
⚠️ Limitation
- P/E ratio significantly above industry average, indicating overvaluation.
- PEG ratio of 3.77 suggests growth is priced expensively.
- Quarterly PAT decline shows earnings volatility.
📉 Company Negative News
- Decline in FII holding (-0.66%) indicates reduced foreign investor confidence.
- Technical indicators (RSI 40.9, MACD -15.2) show weak momentum.
📈 Company Positive News
- DII holdings increased (+0.81%), showing domestic institutional support.
- Stable dividend payouts reinforce shareholder value.
🏭 Industry
- Agriculture and fertilizer industry PE at 18.4, lower than Coromandel’s 30.1, suggesting relative overvaluation.
- Government focus on rural development and food security provides strong industry tailwinds.
🔎 Conclusion
- Coromandel International is a fundamentally strong agri-input company with low debt and efficient capital use.
- Valuation is stretched compared to industry peers, and profit volatility is a concern.
- Best suited for long-term investors with cautious entry around 2,050–2,100 ₹; accumulation strategy recommended for exposure to India’s agriculture growth story.
Would you like me to also highlight seasonal demand cycles in agriculture that could influence Coromandel’s earnings and help refine entry timing?