BENGALURU (Reuters) – Indian agricultural chemicals maker Coromandel International Ltd 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.
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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.
Estimates (next Analysts’ sentiment
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
Sumitomo Chemical SUMH.NS 36.22 25.97 10.33 14.65 BUY 7 0.87 0.30
* 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)
(Reporting by Yagnoseni Das in Bengaluru; Editing by Sohini Goswami)