Buy Coromandel Int; target of Rs 435: Emkay

4992 Investors following Coromandel Int. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy Coromandel Int; target of Rs 435: Emkay

Emkay Global Financial Services is bullish on Coromandel Int and has recommended buy rating on the stock with a target of Rs 435 in its May 31, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy NCC; target of Rs 109: Angel Broking Buy Prakash Industries; target of Rs 96: Angel Broking Buy Jagran Prakashan; target of Rs 150: PINC Research ALSO READ See previous views by Emkay Global Financial Services See what other Experts & Brokerages are saying about Coromandel Int See messages about Coromandel Int Coromandel Int BSE | NSE 01/06/12 Are Mutual Funds betting on Coromandel Int?

Emkay Global Financial Services is bullish on Coromandel Int and has recommended buy rating on the stock with a target of Rs 435 in its May 31, 2011 research report.

"Coromandel International has announced acquisition of Gujarat based agro chemical player - Sabero Organics with an investment of Rs 4.7 bn. Company has plans to acquire promoters' stake of 42.2% at Rs 160 / share and non compete fee of Rs 38.5 / share resulting into cost of Rs 2.8 bn. The board has also approved open offer upto 31% (resulting into investment of Rs 1.8 bn). At acquisition price of Rs 160 / share (78% premium to yesterday's close price) the deal is valued at EV/EBITDA of 14.6x and EV/Sales of 1.7x. Sabero has net debt of Rs 870 mn as on Mar'2011. We will like to highlight that that Sabero's results were adversely affected in FY11 on account of lower production. Plant operations were affected due to debottlenecking. Sabero reported revenues of Rs 4.1 bn, EBITDA of Rs 469 mn and PAT of Rs 106 mn in FY11."

"Sabero has wide product portfolio in active ingredients which includes 8-9 key products like Mancozeb, Glyphosate, Monocrotophos, Acephate etc across the category like Insecticide, Herbicide and fungicide. However, Sabero has weak presence in formulations and branded products sales only accounted for 10% of company's revenues. On the other hand Coromandel enjoys strong brand presence and has significant presence in formulations. This acquisition will complement Coromandel's presence in agrochemicals market and will drive synergy benefits. Sabero also has presence in exports market (~55% of revenues) and has 240 registrations in 50 countries which will help Coromandel to mark its presence in these markets. Acquisition to also give Coromandel an opportunity to enter into exports markets. We view this acquisition positive for Coromandel and maintain our BUY recommendation with target of Rs 435," says Emkay Global Financial Services research report.  

What stocks does HSBC hold?

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment