Coromandel International Company Update - Ripe For Rerating: Prabhudas Lilladher

A farmer sprays fungicide in a field of rice in Haryana. (Photographer Prashanth Vishwanathan/Bloomberg)

Coromandel International Company Update - Ripe For Rerating: Prabhudas Lilladher

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

We increase Coromandel International's topline/Ebitda/PAT estimates by 9%/17%/19% for FY22 and 9%/15%/17% for FY23 to factor in benefits arising from increase in NB subsidy for Phosphates by >200% to Rs 45.3/kg.

We believe, this substantially reduces the impact of rising raw material prices and risk of reduction in volumes due to potential sharp price hikes (~30-50%).

Higher subsidy payout and lower maximum retail price coupled with strong underlying demand momentum is likely to aid 5% volume growth in NPK and provide operating leverage benefits.

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Prabhudas Lilladher Coromandel International Company Update .pdf


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