Fertilizer Stock To Buy For 17% Potential Gain, TP Rs 1430: Sharekhan Recommends

Leading brokerage firm appears bullish on Coromandel International shares and assigned buy call with target price of Rs 1430. Current market price of Coromandel International share on BSE is Rs 1224.60 per share and if you buy Coromandel International stock at this price, you can likely return of 16.77%. Coromandel International shares gave 28% return in last 6-months and jumped 37% year-to-date. Check details below:

Coromandel International Stock Performance & Return: Las trading price of Coromandel International stock on BSE is Rs 1224.60 apiece with intraday fall of 1.25%. Its 52-week high price is Rs 1252.55 per share and 52-week low price is Rs 838.95 per share, respectively. The company has a market capitalisation of Rs 36,051.43 crore. Coromandel International stock gained 10% in last 1-month, soared 27% in last 1-year, rallied 62% in last 2-years, and offered return of 198% in last 5-years.

Coromandel International Financials: The company for the financial year FY24 ending September 2023 declared a growth of 2% in its net profit to Rs 755 crore as compared to Rs 741 crore in the corresponding quarter of last year. The company's total income for the quarter ended September 2022 declared at Rs 7033 crore as against Rs 10,145 crore for the corresponding quarter of last year. "Coromandel displayed a resilient performance in a challenging business environment, sustaining its profitability and improving its working capital position during the quarter. The company's key operating markets were impacted by sub-normal monsoons affecting the agri inputs offtake," said Arun Alagappan, executive vice chairman of Coromandel International.

Valuation: According to Sharekhan, "We expect PAT to grow by 10% over FY2023-FY2026E along with a high RoE/RoCE of 21%/28% in FY2026E. A potential foray into CDMO/specialty chemicals and ramping up of the drone business would further support medium to long-term earnings growth. The valuation of 14.9x/13.7x its FY2025E/FY2026E EPS seems reasonable, considering the healthy growth outlook. Hence, we maintain our Buy rating with a revised price target (PT) of Rs. 1,430."

Key Risks: 1) Lower demand due to poor monsoons and regulatory changes might affect revenue growth momentum and 2) Unfavourable variations in raw-material prices, delay in the ability to pass on price hikes, and adverse currency fluctuations might affect margins.

Disclaimer:

The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.