Motilal Oswal has given Buy recommendation for Coromandel International with a target price of Rs. 1071 in its research report issued on Feb 03, 2021

Motilal Oswal’s research report on Coromandel International

Coromandel International (CRIN) reported a decent EBITDA performance (on a high base of last year) on the back of margin expansion in Crop Protection and better manufacturing and trading margins in the Fertilizer segment. Increasing phos acid prices (+35% YoY and +15% QoQ) and, consequently, a price hike in complex fertilizers would continue to be the key monitorable. CRIN reported in-line numbers in 3Q; thus, we maintain our estimates for FY21/FY22/FY23E. Maintain Buy.

Outlook

We expect a revenue/EBITDA/PAT CAGR of 9%/13%/18% over FY20–23E. We value CRIN at 18x FY23E EPS to arrive at TP of INR1,071. Maintain Buy.

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