India's National Fertilizers swings to quarterly loss on shrinking demand

Coromandel International

08/08/2023 10:19

BENGALURU, Aug 8 (Reuters) - Indian state-owned firm National Fertilizers  NAFT.NS 
swung to a quarterly loss on Tuesday, hurt by dwindling demand.
    The company reported a consolidated loss of 1.21 billion rupees ($14.6 million) for the
first quarter ended June 30, compared to a profit of 1.25 billion rupees a year ago. 
    This is the second consecutive quarter that the company has reported a loss.
    Revenue fell 21.7% to 50.51 billion rupees.

    For further highlights, click  urn:newsml:reuters.com:*:nFWN39O251

    
KEY CONTEXT
    
    Analysts at Kotak Institutional Equities cautioned that the chemicals industry is likely
to continue to see inventory destocking by clients and a weak demand environment for the
majority of the first-half of this fiscal, while Elara Capital said it expects erratic
rainfall, triggered by the El Nino weather phenomenon, to dent demand for agrochemicals in the
second quarter.
    Rival Deepak Fertilisers  DPFE.NS  posted its worst fall in profit in over four years,
while both Coromandel International  CORF.NS  and Chambal Fertilisers and Chemicals  CHMB.NS 
reported a marginal drop in first-quarter profit. 
    

PEER COMPARISON        
    
                               Valuation    Estimates (next  Analysts' sentiment         
                               (next 12       12 months)                                 
                               months)                                                   
                  RIC        PE     EV/EBI  Revenu  Profit   Mean    # of      Stock to  Div
                                    TDA     e       growth   rating  analysts  price     yield
                                            growth           *                 target**  (%)
 National          NAFT.NS   NULL   NaN      NULL    NULL    Null           0    NaN      2.18
 Fertilizers Ltd                                                                         
 Chambal           CHMB.NS    8.32    5.71  -21.78   21.51   Hold           3    0.88     2.74
 Fertilisers and                                                                         
 Chemicals Ltd                                                                           
 Deepak            DPFE.NS    7.95    5.97   1.64    NULL    Buy            1    0.80     1.82
 Fertilisers and                                                                         
 Petrochemicals                                                                          
 Corp Ltd                                                                                
 Coromandel        CORF.NS   14.25    9.64  -8.80    6.12    Strong        10    0.86     1.15
 International                                               Buy                         
 Ltd                                                                                     
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong
Sell

** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the
stock is trading above the PT


APRIL-JUNE STOCK PERFORMANCE OF NATIONAL FERTILIZERS VS PEERS
    
    
    
    
-- All data from Refinitiv

-- $1 = 82.8100 rupees 
       

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National Fertilizers shares vs Peers    https://tmsnrt.rs/3KyFYd3
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 (Reporting by Ashish Chandra in Bengaluru; Editing by Sonia Cheema)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))