Geojit has given Buy recommendation for Coromandel International with a target price of Rs. 941 in its research report issued on May 04, 2021

Geojit’s research report on Coromandel International

CRIN’s total revenues in Q4FY21 de-grew by 0.5% YoY to Rs.2,856cr on the back of de-growth in revenues and volumes from the fertilizer business. The de-growth was mainly due to the planned maintenance shutdown of fertilizer plants and inventory build-up for the kharif season. The crop protection business saw a 16.5% growth YoY to Rs.515cr in revenues during the quarter with new product launches contributing to revenue growth. CRIN received subsidy reimbursements of Rs.2,943cr from the government in Q4FY21, which will improve the working capital cycle in the long term. Rainfall is forecasted to be normal in the coming year which will enable further volume growth.

Outlook

We reiterate a “Buy” rating on CRIN with a target price of Rs.941 based on 16x FY23E EPS.

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