Coromandel International Limited is an Indian company which is primarily involved in the business of fertilizers, crop protection solutions, and speciality nutrients.Market Capitalisation
The market capitalisation of Coromandel International Limited, as of August 7, 2018, is a little over Rs.12,500 crore.
Company’s Wealth and Recent Performance
- For the first quarter of the financial year 2018-19, Coromandel International Limited reported its total consolidated income to be at Rs.2,537.29 crore. This marks an increase of roughly Rs.200 crore in the revenue reported for the June quarter of the previous fiscal year. For the year ended on March 31, 2018, the company’s total consolidated income was stated to be at Rs.11,186 crore.
- Consequently, the net profit after tax for the Q1 FY 2018-19 was stated to be at Rs.90.21 crore - an increase of a little over 20% with respect to the net PAT reported for the corresponding quarter of the previous year.
- The company’s earnings per share for the period stands at Rs.3.09 as against Rs.2.49 reported for the June quarter of the previous fiscal year.
- Considering the segment-wise revenue of the company, its nutrient and other related businesses witnessed an increase of roughly Rs.55 crore in revenues with respect to the quarter ended on March 31, 2018. A similar growth was also seen in its crop protection business.
- Lastly, the total assets of Coromandel International Limited are worth Rs.10,805 crore. This marks an increase of more than 10% in the assets column with respect to the corresponding quarter of the previous year. In the same period, the company’s liabilities have also increased by around Rs.1,800 crore to stand at Rs.7,821 crore at the end of Q1 FY 2018-19.
Coromandel International Limited Stock Trends in 2018
- On January 2, 2018, the opening price of Coromandel International Limited shares was Rs.557.90 on the National Stock Exchange. Over the course of the first month, the price dipped slightly by less than 5%. However, the scrip managed to end the month at Rs.554.60.
- Things got fairly rocky over the course of February as the markets across the world reacted to the news of interest rate hike by the Federal Reserve. Luckily, the Coromandel International Limited shares didn’t suffer a lot in this period and the scrip lost only around Rs.40. Once again, in the final week of the February, the share price of Coromandel International recovered to end the month at Rs.558.75.
- The month of March was along similar lines. The scrip was quite volatile in the first half of the month. In the second half, the company announced an interim dividend of 300% which helped the stock price of Coromandel International Limited recover. The closing price on March 28, 2018 was Rs.525.15.
- Things were fairly even through most of April. It wasn’t until the final week of the month that the share price of Coromandel International took a massive nosedive. This sharp drop in the prices was caused by the updates in the financial results. The shares slipped into the Rs.400 region and the closing price on April 30, 2018, was Rs.475.50.
- The month of May didn’t bring any reprieve to the investors. Through most of the month, the Coromandel International Limited shares were traded at levels varying from Rs.450 - Rs.470. In June, the share price plummeted further. The shares shed more than 10% and eventually, they hit their 52-week low at Rs.383.45.
- The prices recovered slightly in July, although the gains made here weren’t as optimal as the ones made in 2017. On July 31, 2018, the closing price of Coromandel International Limited shares was Rs.425.10. The company also announced a final dividend of 350% in the month.
Coromandel International Limited Stock Trends in 2016 and 2017
- At the start of 2016, the share price of Coromandel International Limited was around Rs.190. The price went down by roughly 10% over the course of January and February and the shares descended into the Rs.170 territory. In the month of March, however, the shares commenced a steady bull run which resulted in good gains for the investors.
- The price rose steadily in March and by April, the shares had crossed the Rs.200 mark. Through the months of May and June, the shares made small gains and they moved up in a gradual manner. They maintained their bearings well above the Rs.200 mark. By the end of June, the Coromandel International Limited stocks were being traded at levels above Rs.250.
- In July, the company announced a final dividend of 400%. However, this announcement came at a time when the shares had lost a little over 5% to descend to their previous levels at Rs.230. However, the prices started to rise once again and by late October, the shares had soared to touch the Rs.280 mark.
- Things got fairly rocky post demonetisation as the shares shed their recently made gains to slip down to levels at Rs.240. However, the prices did manage to recover slightly in December to end the year at Rs.292.45. This marked an increase of more than 50% in the value of the stock with respect to the start of the year.
- In January 2017, the price rose to cross the Rs.300 mark. In fact, this rise signalled the start of a bull run which resulted in excellent gains for the investors over the course of the year. In mid-February, the Coromandel International Limited stock price was around Rs.345. However, this was followed by a gradual decrease in the share price. By early April, the shares had retreated back to their previous levels at Rs.310.
- This stock compensated for this gradual decline in the prices with a bearish behaviour. Through the course of April, May, and June, the stock price of Coromandel International Limited rose handsomely to cross the Rs.400 mark. In early July, the shares were seen changing hands at levels above Rs.415. A final dividend of 500% was also announced in the period.
- Through the months of August and September, the share prices stabilised at levels above Rs.400. It wasn’t until October that the prices rose once again and this time, they went up to ascend into the Rs.500 region. The second half of December also witnessed a dramatic surge in the prices and as a result, the closing price on December 28, 2017, was Rs.565.10.
Should you invest in Coromandel International Limited?
- Coromandel International Limited is an Indian fertiliser company which offers a variety of crop protection and high and superior yield solutions. It is one of the leading players in the fertilisers industry in India. Furthermore, it is also present in the retail sector and it primarily covers the rural areas of Andhra Pradesh and Karnataka.
- Being a part of the agriculture industry, its sales are highly cyclical in nature. The sales of the company are more during the months of August - October in comparison to the rest of the year.
- Considering the financial performance of the company, Coromandel International Limited has reported decent sales figure for the first quarter of the FY 2018-19. However, the results for the second quarter are likely to be better, considering that they will be taking place during the monsoon season. A similar trend has also been observed in the performance of the company’s stock. Over the course of the last three years, its stock price has increased in the second half of every year.
- As of August 2018, the stock has been highly bearish. It has effectively shed all the gains it made in the second half of 2017. With the sales of the company likely to pick up in the second quarter, buying this stock at the present levels makes for an attractive buy. Even with respect to its peers, the company is at the top in terms of sales turnover and profit. It is also fairly consistent with dividends.
- Coromandel International Limited is a good stock as a part of a diversified portfolio. However, it is strongly suggested that you do your own research before investing in this particular scrip.
Coromandel International Limited is one of the largest fertiliser manufacturers and distributors in India. While its primary business operations are focussed on fertilisers, it also offers a variety of crop protection solutions in the form of insecticides, pesticides, fungicides, and herbicides. In fact, it is one of the largest companies in the Indian Pesticide Industry. Apart from this, Coromandel International Limited also offers speciality nutrients for better crop yields.
History of the Company
The roots of the company can be traced back to the year 1961 when the company was incorporated as a private entity. In April 1964, the erstwhile Coromandel Fertilisers Limited was converted into a public company. The company started its operations by selling fertilisers and urea and subsequently branched into other domains. Through the 70s and the 80s, the company worked on expanding its operations and solidifying its position in the Indian markets. Starting in 2000, Coromandel International Limited signed business agreements and MoUs with various national and international companies. Over the course of this decade, Coromandel also acquired a stake in many companies which made it one of the leading players in the fertilisers sector in India.
Management of the Company
Mr. M.M. Murugappan - Chairman
Mr. Murugappan presently serves as the Chairman of the Board at Coromandel International Limited. In addition to this, he serves as the Chairman of the Board at Cholamandalam Investment and Finance Company. He is also associated with the Murugappa Group Limited, where he serves as the Chief Technology Officer and Director of Technology. Furthermore, he also serves as the Chairman of MEL Systems & Services Limited and Murugappa Morgan Thermal Ceramics Limited. He is also associated with various educational institutes - he serves as a Director at M M Muthiah Research Foundation and as a correspondent of the Murugappa Polytechnic College.
Mr. V. Ravichandran - Vice Chairman
Mr. Ravichandran presently serves as the Vice Chairman of Coromandel International Limited. Prior to this, he served as the Managing Director and the President of the organisation. Over the course of his illustrious career, he has had held various key management positions like the General Manager of Long Haulage Vertical at Ashok Leyland Limited, Managing Director of Godavari Fertilisers and Chemicals Limited, and Vice President of the Farms Inputs Division - E.I.D. Parry India Limited. He joined the Murugappa Group in October 1985 and worked with the Parry Group of Companies in the field of finance and marketing.
Mr. B.V.R. Mohan Reddy - Director
Mr. B.V.R. Mohan Reddy presently serves as the Non-Executive & Independent Director of Coromandel International Limited. Apart from this, he also serves as an Executive Chairman of Infotech Enterprises Information Technology Services Private Limited. He is also the Executive Chairman and Executive Director of Infotech Enterprises Limited. He has played an important role in broadening the scope of Engineering Research and Development in India. He has been honoured with the famed American Society of Mechanical Engineers Leadership Award for his role in advancing the use of computers in information engineering.
Coromandel International Limited Listings in NSE, BSE, and Listings
The equity shares of Coromandel International Limited are available to the general public for trading. The shares are listed on the country’s two prominent stock markets - National Stock Exchange of India Limited and the Stock Exchange, Mumbai. The respective call signs for the same are as follows:
- NSE Code: COROMANDELEQ
- BSE Code: 506395
- ISIN: INE169A01031
- Sector: Fertilisers
Coming to the stock market indices, the company forms a part of the following indices:
- NIFTY 200
- NIFTY 500
- NIFTY Full Midcap 100
- NIFTY Midcap 100
- S&P BSE 200
- S&P BSE AllCap
- S&P BSE 500
- S&P BSE Basic Materials
- S&P BSE SmallCap
Coromandel International Limited
Sardar Patel Road,
Secunderabad - 500-003
Contact number: +91-40-2784-2034
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