- Coromandel International is engaged in the business of farm inputs comprising of fertiliser, crop protection, specialty nutrients and organic compost.

- In 3QFY20, manufactured fertilizer segment margins grew 30% YoY to Rs.4K/tn as it continues to benefit from backward integration

- The company has a favourable oulook on account of

• Start of irrigation projects in core operating areas will help in medium term

• Favourable Rabi and high reservoir levels will help keep growth momentum

• Margin stability due to backward integration

• Changes in regulatory landscape can shift the balance in favour of complex manufacturers like Coromandel in the long term

- Crop protection performance was slow in 3Q at just 3% YoY growth

- 5 product launches in FY20 and 2 more in Kharif season would help fuel growth

- Valuations are at 17x PE multiple and are expected to remain similar going forward

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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