India's Coromandel International misses Q2 profit estimates on muted demand

SRF

26/10/2023 10:49

BENGALURU, Oct 26 (Reuters) - Indian agricultural chemicals maker Coromandel International Ltd  CORF.NS  on
Thursday marginally missed profit estimates, hurt by muted demand for fertilisers and nutrients.
    Consolidated net profit after tax for the second quarter rose 2% to 7.57 billion rupees ($91.00 million) from 7.41
billion rupees a year earlier.
    Analysts, on average, expected a profit of 7.59 billion rupees, as per LSEG data.
    Revenue from operations slumped more than 30% to 69.88 billion rupees.
    For further earnings highlights, click here.
    
    WHY IT MATTERS
    Analysts at Nirmal Bang said agrochemical companies' revenue growth is likely to be muted due to weak topline amid
persistent pressure on prices and unabated Chinese supplies at lower rates as per industry. 
    Rival SRF Ltd is expected to report its earnings on Friday.
    Coromandel reported a fall in its profit for the last two consecutive quarters. 
 
    
    PEER COMPARISON
                              Estimates (next      Analysts' sentiment                                       
                                12 months)                                                        
                      RIC      PE    EV/EBITD   Revenue   profit    Mean     # of     Stock to         Div yield (%)
                                        A       growth    growth   rating   analyst     price     
                                                                      *        s      target **   
    Coromandel      CORF.NS   14.90   10.10      -4.81     5.47    STRONG     10        0.91               1.08
 International Ltd                                                   BUY                          
      SRF Ltd       SRFL.NS   28.45   17.03      10.11     8.34      BUY      25        0.84               0.37
      Deepak        DPFE.NS   8.64     6.41      3.76      NULL      BUY       1        0.89               1.64
  Fertilisers and                                                                                 
  Petrochemicals                                                                                  
     Corp Ltd                                                                                     
 Sumitomo Chemical  SUMH.NS   36.22   25.97      10.33     14.65     BUY       7        0.87               0.30
     India 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
    
    JULY-SEPT STOCK PERFORMANCE
  

 
    -- All data from Refinitiv
    -- $1 = 83.1860 rupees
     


($1 = 83.1860 Indian rupees)

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Coromandel International Jul-Sept stock performance    https://tmsnrt.rs/46J2YPG
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 (Reporting by Yagnoseni Das in Bengaluru; Editing by Sohini Goswami)
 ((Yagnoseni.Das@thomsonreuters.com; +91 6001289066;))