Buy Coromandel Inter; target of Rs 359: PINC Research

PINC Research has maintained buy rating on Coromandel International with a target of Rs 359, in its April 21, 2011 research report.

"Coromandel International's (CIL) Q4FY11 results were below expectations as net sales decreased by 13.9% YoY to Rs11.7bn due to preponement of annual shutdown in Q4 and lower trading volumes. Higher other expenses coupled with lower production resulted in adj OPM contraction of 354bps to 5.3%. Consequently, adj. net profit declined 50.2% YoY to Rs409mn. However for FY11, net sales and net profit grew by 17.7% and 48.3% respectively with OPM expansion of 145bps.

"We maintain our FY12 estimates and have introduced FY13 estimates. At the CMP of Rs318, CIL trades at FY12 and FY13 PER of 11.2x and 9.7x and EV/EBITDA of 3.8x and 3.0x respectively. We are positive on complex fertiliser space and maintain our

Read More