1. At a Glance
India’s second-largest phosphatic fertiliser seller, dominant in Andhra and Telangana, is now experimenting with bio-pesticides, gypsum, and… pharmaceuticals? With 70,000+ Cr market cap and ambitions rooted in soil (literally), Coromandel might be sprouting a multi-sector empire.
2. Introduction with Hook
If Dhirubhai Ambani reincarnated as a farmer, he’d probably run something like Coromandel International. What started as a fertiliser biz is now spreading faster than monsoon gossip—into crop protection, bio products, even green energy and pharma.
- Market Cap: ₹70,322 Cr
- Net Profit FY25: ₹2,055 Cr
- Q4 PAT YoY growth: +86%
Buckle up, the yield is high and so are the ambitions.
3. Business Model (WTF Do They Even Do?)
Coromandel’s revenue bouquet is as follows:
- Nutrient & Allied Products (85%): Complex fertilisers, Urea-free SSP, high-margin NPKs.
- Crop Protection (15%): 60+ brands, exports to 50+ countries. Think pesticides, fungicides, insecticides.
- Biologicals: Neem-based azadirachtin—world leader with 65% market share.
- Diversification Drive: Green energy, e-commerce (yes, seriously), gypsum JV, and now acquiring 53% of NACL Industries (pharma + agri inputs).
Think of it as the ITC of agri—with better soil and less cigarettes.
4. Financials Overview
| Year | Sales (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | ROE (%) | ROCE (%) |
|---|---|---|---|---|---|
| FY22 | 19,111 | 2,156 | 1,528 | 22% | 35% |
| FY23 | 29,628 | 2,902 | 2,013 | 17% | 38% |
| FY24 | 22,058 | 2,380 | 1,641 | 16% | 26% |
| FY25 | 24,085 | 2,577 | 2,055 | 17% | 23% |
Commentary:
FY23 was the banger. FY24 saw a dip thanks to erratic monsoons and subsidy delays. FY25 is back with a vengeance.
5. Valuation
- P/E: 40.9 (ouch, but justified?)
- Industry median P/E (fertilizer peers): ~25
- Book Value: ₹376
- Price-to-Book: 6.34
Valuation Range (EduFair™):
₹1,880 – ₹2,600 (Fair Value)
Depending on rainfall, subsidy policies, and whether they launch Coromandel.com for agri e-commerce.
6. What’s Cooking – News, Triggers, Drama
- NACL Industries Acquisition: Pharma + agchem synergy + mandatory open offer.
- MoU with Ma’aden (Saudi): Secures rock phosphate supply = supply chain control.
- Gypsum JV with Sakarni: Capital-light expansion into building materials.
- Massive Capex Pipeline: ₹1,000+ Cr earmarked for bio & tech upgrades.
- Executive reshuffle: New Executive Vice Chairman (Mr. Natarajan Srinivasan)—signals aggression.
7. Balance Sheet
| FY | Equity | Reserves | Debt | Cash | Net Worth |
|---|---|---|---|---|---|
| FY23 | ₹29 Cr | ₹7,878 Cr | ₹393 Cr | ₹688 Cr | ₹7,907 Cr |
| FY25 | ₹29 Cr | ₹11,058 Cr | ₹780 Cr | ₹-872 Cr | ₹11,087 Cr |
Key Takeaways:
- Practically debt-free until FY24. FY25 sees borrowing spike (acquisitions + JV).
- Strong reserve build-up. ROE holds at ~17%.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | 591 | 640 | -543 | +688 |
| FY24 | 1,428 | -1,338 | -363 | -273 |
| FY25 | 2,464 | -2,638 | -698 | -872 |
Interpretation:
Cash from ops doubled in FY25, but massive investment cash outflows = expansion mode ON. This is not a hold-the-cash business—it’s more like YOLO-for-phosphates.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 38 | 26 | 23 |
| ROE (%) | 17 | 17 | 17 |
| OPM (%) | 10 | 11 | 11 |
| Debt/Equity | 0.05 | 0.05 | 0.07 |
| CCC (days) | -7 | 8 | -7 |
Verdict:
Working capital kings. Negative CCC = suppliers are funding the business. That’s Big Agri flex.
10. P&L Breakdown – Show Me the Money
| FY | Sales | Gross Profit | EBITDA | Net Profit | EPS |
|---|---|---|---|---|---|
| FY23 | ₹29,628 Cr | ₹2,902 Cr | ₹2,013 Cr | ₹68.46 | |
| FY25 | ₹24,085 Cr | ₹2,577 Cr | ₹2,055 Cr | ₹70.14 |
TL;DR:
Despite top-line softening, margins are back. EPS growth is impressive, supported by operating leverage and R&D monetisation.
11. Peer Comparison
| Company | Market Cap | P/E | ROE (%) | OPM (%) | D/E |
|---|---|---|---|---|---|
| Coromandel Intl | ₹70,322 Cr | 40.9 | 17 | 11 | 0.07 |
| Chambal Fert. | ₹21,827 Cr | 13.2 | 20.6 | 14.9 | 0.3 |
| Paradeep Phosphates | ₹13,889 Cr | 25.1 | 14.4 | 9.1 | 0.2 |
| RCF | ₹8,361 Cr | 34.9 | 5.1 | 4.0 | 0.8 |
Takeaway:
Premium P/E, but with premium fundamentals. Chambal’s a lean rival, but Coromandel plays the long game.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 56.96% (slightly reduced over 2 years)
- FIIs: 10.61% (rising)
- DIIs: 18.97%
- Public: 13.44%
Red Flag?
Nothing alarming. FII confidence is growing. If TMB or ICICI Pru starts offloading—then we gossip.
13. EduInvesting Verdict™
Coromandel is that overachieving agri nerd in class—topping exams and building rockets in spare time. Its core is a predictable, cash-generating fertiliser biz. But the side quests—biologicals, gypsum, pharma—could be breakout hits if executed well. Capex is aggressive, and management intent is clear: Scale now, profit forever. Watch for volatility in global raw material prices and subsidy timing—but don’t be surprised if this firm becomes India’s first agri-conglomerate unicorn that actually makes sense.
Metadata
– Written by EduInvesting | 14 July 2025
– Tags: Coromandel, Fertilizers, Agrochemicals, Multibagger, CropProtection, NACL, Capex, AgroPharma, BioPesticides, FertilizerKing
