Coromandel International Limited

Basic Materials — Agricultural Inputs · NSE

₹1,755.00−₹10.30 (−0.58%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Coromandel International Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Coromandel International Limited provides agriculture solutions in India and internationally. The company operates through the Nutrient and Other Allied Business, and Crop Protection segments.

IndustryAgricultural Inputs

SectorBasic Materials

Employees6,299

Annual revenue₹20,223 Cr

How does it make money?

Turns over ₹20,223 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 6,299 employees supports ₹3.21 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.21 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 15.6% against a peer median of 22.3% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE22.3%

What is the outlook?

9 analysts covering the stock expect revenue to grow about 5.5% and earnings to grow about 30.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+5.5%

Est. earnings growth+30.9%

Analysts9

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +34% while net margin moved -27% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+34%

Margin effect-27%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 10.2% is steady
✗ Profit has declined at 0.9% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Profit fell 24.5% in the latest year

Quality vs. Valuation

Company Quality

57/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

55/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

28.3x

3Y Median

29.6x

40 monthly readings · mean 27.9x · range 15.3x–48.3x

Sector Median

28.7x

median of 4 sector peers

🟡Currently trading close to its 3y median of 29.6x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 28.7x.

vs. its own history

Fair

29.6x median over 40 months · -4%

vs. sector peers

Fair

28.7x median of 4 peers · -2%

vs. generic bands

Fair

15x–35x

EV/EBITDA

17.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 20.9% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 25.5% to 15.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 34.4% to 20.9% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1563% over 3 years, from ₹393 Cr to ₹6,528 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 252% against revenue up 34% — sales are being booked faster than they are collected.
🟡Margins are compressingFinancial
EBITDA margin is down 3.6 points over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 63% against revenue up 34% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹17 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 20.2% to 16.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 252% against revenue up 34%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 25.5% to 15.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.2% CAGR
Latest reported year was 15.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 16.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹17 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 18%✓ 20.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹51,692 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

28.3x

Fair

Fairly valued against the generic band

P/B Ratio

4.12x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹62.11

Profitable

Profitable on a per-share basis

ROE

15.6%

Strong

Strong capital efficiency

ROCE

20.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

15.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-24.5%

Falling

Profits are shrinking

Dividend Yield

0.63%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹17 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

18.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

6.8%

Average

Average margins

Net Margin

5.6%

Average

Average bottom-line conversion

Current Ratio

1.51

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.13

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1817.9 / 1919.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹15,099 Cr	₹13,832 Cr	₹15,937 Cr	₹20,223 Cr	+10.2%
EBITDA	₹3,049 Cr	₹2,585 Cr	₹2,814 Cr	₹3,365 Cr	+3.3%
EBITDA Margin	20.2%	18.7%	17.7%	16.6%	—
PAT (Net Profit)	₹2,013 Cr	₹1,642 Cr	₹2,066 Cr	₹1,956 Cr	-0.9%
EPS	₹68.38	₹55.75	₹70.12	₹66.31	-1.0%
ROE	25.5%	17.4%	18.6%	15.6%	—
ROCE	34.4%	23.7%	25.0%	20.9%	—
Total Debt	₹393 Cr	₹492 Cr	₹3,842 Cr	₹6,528 Cr	+155.2%
Free Cash Flow	-₹14 Cr	₹901 Cr	₹1,613 Cr	₹17 Cr	—

🟢 Revenue has grown at 10.2% a year over 3 years.

🟢 EBITDA has grown at 3.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 20.2% to 16.6% over 3 years (-3.6 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (-0.9% a year).

🟡 EPS has been broadly flat over 3 years (-1.0% a year).

🔴 ROE has fallen from 25.5% to 15.6% over 3 years (-9.9 pts).

🔴 ROCE has fallen from 34.4% to 20.9% over 3 years (-13.4 pts).

🔴 Total Debt has grown at 155.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹14 Cr to ₹17 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹24,503 Cr

Total Liabilities

₹11,370 Cr

Cash & Equivalents

₹423 Cr

Operating Cash Flow

₹1,558 Cr

Capex

-₹1,540 Cr

Shareholding (proxy)

Institutional Holding

25.5%

Insider Holding

59.6%

Corporate Actions

Next Earnings

29 Oct 2026

Dividend Rate

₹11

Ex-Dividend Date

16 Jul 2026

Analyst Consensus

Recommendations

8 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹2,299.22

+31.0% vs CMP

Target Range

₹2,067 – ₹2,951

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 positive2 mixed3 general

COROMANDEL Outlook for the Week

Equitypandit, 09 Oct

Coromandel International (NSEI:COROMANDEL) Stock Price

Simply Wall Street, 12 Oct

Coromandel International Share Price Falls in Streak

Univest, 08 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Coromandel International FY 2025-26 Annual Report: Record Revenue, Strategic Acquisitions and ESG Milestones

scanx.trade, 11 OctResults

🟢Potentially positiveA record operating figure, if it holds, feeds directly into the growth and profitability inputs on this page.

Coromandel International 52 Week Low Streak: Decline Review

Univest, 08 Oct

COROMANDEL Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Risk

MiddlingBusiness Quality · Profitability · Valuation

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑