Buy Coromandel International; target of Rs 942: Geojit
Geojit recommended is bullish on Coromandel International has recommended buy rating on the stock with a target price of Rs 942 in its research report dated July 29, 2020.
August 03, 2020 / 04:09 PM IST
Geojit's research report on Coromandel International
Coromandel International (CRIN) is one of the leading private sector fertilizer producers in the country with significant presence in South India. They are one of the leading producers of NPK and SSP grade fertilizers. CRIN saw significant revenue growth of 51% YoY to Rs.3213cr during the quarter as above average monsoon and growth in sowing activities saw large volume offtake. Volumes of key fertilizer products saw large off-take as Nitrogen-Phosphate-Potassium (NPK) and Di-Ammonium Phosphate (DAP) fertilizers saw an 80% growth in sales volumes.
The Crop Protection segment saw its revenues grow by 55% YoY to Rs.420cr as exports and domestic business saw good performance Considering the good monsoon, focus on CPC business and backward integration, we expect a net profit CAGR of 20% over FY20-FY22E Hence we recommend a "Buy" and value CRIN at 18x FY22E EPS with a target of Rs.942.
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