Coromandel International Q3FY17: Fundamental Analysis - Firstcall India Equity

Firstcall India Equity | May 18, 2016, midnight


SYNOPSIS

  • Coromandel International Ltd, leading manufacturer of a wide range of Fertilizers, Crop Protection and Specialty Nutrient Products.
  • During the quarter, Coromandel International consolidated turnover stood at Rs. 22708.00 mn as against Rs. 2782630 mn in the corresponding quarter of the previous year.
  • During Q3 FY17, consolidated Net profit jumps to Rs. 1118.10 mn from Rs. 807.90 mn in Q3 FY16, an increase of 38.40%.
  • During the quarter, consolidated EBIDTA is Rs. 3018.00 mn as against Rs. 2308.00 mn in the corresponding period of the previous year, up by 30.76%.
  • During Q3 FY17, consolidated PBT increased by 34.12% to Rs. 1704.90 mn from Rs. 1271.20 mn in Q3 FY16.
  • EPS of the company stood at Rs. 3.83 a share during the quarter, registering 38.25% increased over previous year period.
  • During the nine months ended FY17, net sales stood at Rs. 79054.70 mn as compared to Rs. 8528230 mn in the previous year same period.
  • During 9M FY17, Net profit increased to Rs. 3326.90 mn from 2687.30 mn in 9M FY16, an increase of 23.80%.
  • Operating Profit and PAT of the company are expected to grow at a CAGR of 10% and 8% over 2015 to 2018E, respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs.333.00, the stock P/E ratio is at 21.86 x FY17E and 19.39 x FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 15.24 and Rs. 17.17 respectively.
  • Operating Profit and PAT of the company are expected to grow at a CAGR of 10% and 8% over 2015 to 2018E, respectively.
  • On the basis of EV/EBITDA, the stock trades at 9.87 x for FY17E and 9.00 x for FY18E.
  • Price to Book Value of the stock is expected to be at 3.38 x and 2.88 x for FY17E and FY18E respectively.
  • Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

 

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