Motilal Oswal's research report on Coromandel International
Coromandel International (CRIN) reported a robust operating performance in 4QFY25 (EBIT up 62% YoY), aided by strong growth in both the Crop Protection business (EBIT up 60% YoY) and the Nutrients and Allied business (Adj. EBIT up 38% YoY; includes INR509.4m toward an adjustment for the write-down of certain assets across plants). Margin expansion was driven by improved manufactured fertilizer volume (up 23% YoY), favorable operating leverage, and benign raw material prices. The company anticipates a positive FY26, supported by stabilizing agrochemical prices, improved inventory levels, favorable weather across key regions, and sustained momentum in the Fertilizer business. It expects strong revenue growth (high double-digit) and maintains guidance for a 40% rise in fertilizer EBITDA/MT over the next 2-3 years. Margin expansion will be driven by backward integration in the Fertilizer business, along with higher demand, new products, and a strategic shift to high-margin offerings in the Crop Protection business.
Outlook
We largely maintain our FY26/FY27 earnings estimates and value the company at ~28x FY27E EPS to arrive at a TP of INR2,600. Reiterate BUY.
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