India's Coromandel International posts 56% fall in Q3 profit on soft demand

SRF

30/01/2024 10:01

BENGALURU, Jan 30 (Reuters) - Indian agricultural chemicals maker Coromandel International  CORF.NS 
reported a 56.2% fall in its third-quarter profit on Tuesday, hurt by subdued demand in its mainstay
fertilizers and nutrient chemicals business.
    Consolidated net profit after tax fell to 2.31 billion rupees (nearly $28 million) for the quarter ended
Dec. 31 from 5.27 billion rupees a year earlier, according to an exchange filing. The company's earnings have
taken a hit for third straight quarter. 
    Revenue from operations fell 34% to 54.64 billion rupees.
    For further results highlights, (click)
        
  
    KEY CONTEXT
    India's agricultural chemicals sector is seeing mixed demand, with a slight pick up in the north, central,
and southeast regions, but weaker demand in the western and southwestern parts due to an erratic monsoon
season, analysts said.
    Coromandel International is brokerage Elara Securities' top pick in the sector.
    
 
    
    PEER COMPARISON
    
                                   Valuation (next   Estimates (next 12      Analysts' sentiment       
                                     12 months)           months)                                      
                    RIC            PE     EV/EBITDA  Revenue    profit   Mean    No. of   Stock to     Div
                                                     growth     growth   rating  analyst  price        yield
                                                                         *       s        target**     (%)
 Coromandel          CORF.NS       15.77      10.01    2.21      13.28   Buy           9     0.92         1.05
 International Ltd                                                                                     
 SRF Ltd             SRFL.NS       32.59      19.09    12.05     19.81   Buy          24     0.88         0.36
 Deepak              DPFE.NS       10.61       6.78    5.05      Null    Buy           1     0.85         1.59
 Fertilisers and                                                                                       
 Petrochemicals                                                                                        
 Corp Ltd                                                                                              
 Sumitomo Chemical   SUMH.NS       39.84      28.13    11.88     23.93   Buy           8     0.91         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
    
    OCTOBER-DECEMBER STOCK PERFORMANCE
  


 
    -- All data from Refinitiv
    -- $1 = 83.1166 Indian rupees
 

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 (Reporting by Yagnoseni Das and Manvi Pant in Bengaluru)