Brokerage research firm Dynamic Levels has placed a buy call on Phosphatic fertilizer player Coromandel International. Coromandel, as it is widely known, is India's second largest phosphatic fertilizer player. The Company clocked a turnover of Rs. 11,500 Crore during FY 2015-16. It was ranked among the top 20 best companies to work for by Business Today.
Here is why Dynamic Levels is betting on the stock:
Strong on fundamentals
"The EPS has shown a jump from Rs 5.28 to Rs 7.32 almost 25.77 per cent on a yearly basis. Bottom line year-on-year has shown tremendous growth where operating profit has gone up by 28.66 per cent and Profit after tax jumped by 25.54 per cent, year-on-year," the research firm has stated. Long Term Borrowings has also come down drastically from Rs 66.81 crores in March 2015 to Rs 30.55 crores in March 2016.
Renewed thrust on strategies
"Coromandel is working with Punjab Agricultural University and Aston University to do a three year study on analyzing bio-char as a fertilizer, analyzing the energy output for rural application and do a cost benefit analysis for this technology for commercial applications.
Under their umbrella brand "Gromor Suraksha", Coromandel offers a host of high impact crop protection products. These products help millions of farmers every day to address their crop protection related concerns" Dynamic Levels has stated.
Emphasis on research
Coromandel has introduced "Gromor Sampoorthi", a complete nutrition programme for empowering the farmers with the right knowledge. Under the programme, the farmers are provided with a complete crop-wise nutrition scheduled developed by their experts after extensive research.The company continues to provide innovative products based on heavy research. This should augur well for the company in the years to come.
Share price of Coromandel international
The stock of Coromandel International is currently trading at Rs 328. It hit a 52-week high of Rs 353 and 52 week low of Rs 142. Check stock quote of Coromandel International
Strong business model
Coromandel offers unique fertilizer grades that provide balanced nutrition to the crops. The company ventured into organic manure for improving the health of Indian soils and has been enhancing their offerings. Also, Coromandel has introduced "Gromor Sampoorthi", a complete nutrition programme for empowering the farmers with the right knowledge. Under the programme, the farmers are provided with a complete crop-wise nutrition scheduled developed by their experts after extensive research.
Disclaimer: The contents of the article is sourced from the research report of Dynamic Levels with due permission. Dynamic Levels is a website owned by Dynamic Equities Pvt Limited, a member of BSE and NSE. You can visit Dynamic Levels by clicking: www.dynamiclevels.com The article is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article. The author and his family do not own any shares in the above mentioned stocks.