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.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.