institutional research e coromandel international ltd....e coromandel international ltd. november...

Man

age

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November 20, 2018

Coromandel International Ltd.Downside

Scenario

Current

Price

Price

Target

51224%

Upside

Scenario

STRONG BUY

413Recently, we met with Mr. Sameer Goel (Managing Director) and Ms. Jayashree Satagopan(Chief Financial officer) at Coromandel House in Secunderabad and came back veryenthusiastic about the growth prospects of the company. We also visited one of theirprominent Gromor centres in the same city to understand DBT processes and activitiesundertaken by the centre to ensure total professional support to the farming community inthe area.

DBT roll out has been a game changer:The management has complimented the government on the smooth roll out of DBT. Thelag of receiving subsidies which was 6-8 months earlier has now come down to one month.Because of DBT, channel inventory has got cleaned up and it is easy to track the fertilisers interms of market availability and sales. The smooth subsidy processes started only fromAugust 2018. Old claims are still not received yet but the company is hopeful that it will besettled soon.

The management is keen to see how the government will be able to continue the DBT andthat there would no setbacks going ahead. They are of the opinion that the direct benefitwill happen only when the subsidy is transferred directly to farmers, then the company willbe free of receiving subsidy from government.

Increase EBITDA share from non subsidy business:CRIN relies heavily on subsidies from the government. Even though DBT roll out hasensured that the subsidies will be received on time, the management is of the opinion thatthey need to ensure that the EBITDA share from the non subsidy part of their businessneeds to increase.

They have, therefore, started focussing on the sales of unique grade fertiliser, nonphosphatic fertilisers as well as on their crop protection business. The management has avision of equal contribution to EBITDA from subsidy and non subsidy business segments.

Crop protection:CRIN has expanded the Dahej facility by 10,000 MT taking the total capacity at both thefacilities to 60,000 MT. The new R&D center is focussed on developing new molecules forthe crop protection segment.

Mancozeb continues to remain its main molecules and CRIN is one of the three playersglobally to market it. The management plans to focus on formulations and introduce 5 newcombination molecules every year . This year two patented molecules have already beenintroduced and 3 other molecules will be introduced in March 2019.

CRIN is operational in 80 markets globally. The management is of the opinion that they willenter only in those markets where they feel they can command 60% share going ahead.They will choose these markets depending upon their molecule portfolio.

The management is positive on the performance of biopesticides division that they haveacquired from EID Parry and also mentioned that since acquiring growth of the same hasbeen phenomenal.

CRIN has good presence in southern markets and also in Rajasthan and Punjab. CRINimports 70% of its raw materials from China and they have a dedicated team in China forthe same. The management also iterated that co-marketing with global companies is alsoone of the strategies. Domestically, CRIN co-markets with companies like Insecticide, Rallis,etc.

Raw material prices:The company has taken four price hikes this year. Even though there is a cap on the MRP ofproducts of 5%, the company can hike prices when the industry does the same to helpthem sustain. The company submits a cost sheet to the department of fertilisers (DoF)which contains raw material costs they have incurred during the year.

DoF does this to ensure no undue advantage is taken by any company by increasing theirprices. The company has taken a price increase of 34% in DAP since January. Themanagement said that the capacity expansion in Vizag is on track and will be completed inAugust/ September 2019. In terms of cost, they could benefit 100-125$ from thisexpansion.

Market Data

Industry Agrochemicals

Sensex 35775

Nifty 10768

Bloomberg Code CRIN:IN

Face Value (INR) 1

52-w H/L 588/ 340

Market Cap (INR Crores) 12078

Valuation Data FY18 FY19E FY20E

P/E (x) 23.1 12.8 9.8

EV/EBITDA 14.3 8.2 6.6

Coromandel International Ltd. Vs SENSEX

Sep’18 Jun’18 Mar’18

Promoters 61.8 61.8 61.81

FIIs 3.76 4.36 5.58

DIIs 12.8 12.11 10.49

Retail 21.64 21.73 22.12

Share Holding Pattern

*

* Read last page for disclaimer & rating rationale

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300

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Coromandel Sensex

ANALYSTVaibhav Chowdhry vaibhav.chowdhry@ nalandasecurities.com

NALANDA SECURITIES PRIVATE LIMITED310-311 Hubtown Solaris, NS Phadke Marg, Opp Teli Gali, Andheri East, Mumbai 69+91-22-6281-9649 | [email protected] | www.nalandasecurities.com

ANALYSTHarmish Desai harmish.desai@ nalandasecurities.com

Institutional Research

mailto:[email protected]


Gromor center visit in Shamirpet, Secunderabad:The retail arm of Coromandel was started in the year 2007 with 2 outlets in Andhra Pradesh and by 2013-14 the business expandedto over 800 retail centers in rural Andhra Pradesh, Telengana, Karnataka and Maharashtra. Coromandel's retail centers are locatedat Mandal headquarters (Mandal is a revenue unit in Andhra Pradesh, which is 1/50th of a district.)

Each retail center has an average area of 1750 square feet with a catchment area of 30-40 villages and about 5,000 farmer families.The centre opens in the morning around 6.00 am and remains open till 5.00 pm in the evening. Each centre has a reception,fertiliser and pesticide display, godown for storage and a soil testing area. Each centre consists of 3 people, store manager, accountsexecutive and business development executive (BDE).

The reception area is equipped with POS machines, computer and a printer for generating the bill of purchase. In the soil testingarea, the farmers when they bring the soil, can be tested for nutrients. The apparatus can also be carried by a BDE when he visits afarmer. The store that we visited clocked a annual sale of INR 2 crore.

The BDE visits nearby villages in the morning till 11:30 am and leaves again for the field around 4.00 pm. They visit the villages tounderstand the need of the farmers with respect to fertilizers and pesticides. All employees are trained rigorously for the first threemonths on the use of different pesticides and fertilizers.

All the employees in a gromor centre are graduates and coromandel has tie ups with local universities where they are asked toattend lectures on agricultural science. These centres have a call centre where a team of agriculture scientists sit which can help theemployees of the gromor when they call with any queries.

Valuation:CRIN has benefitted with the DBT rollout and that remains of one the key elements for the company going ahead. Along with thesubsidised fertilisers, the management is also focussed on increasing share of unique grades which stood at 39% this year.

The management is increasing focus on the non subsidised part of the business as they want to reduce dependency on thegovernment going ahead.

The management has also identified the potential of growth they can achieve from the crop protection business and hence plans tocome out with 5 new molecules every year as well as identify new markets for marketing of these molecules. They are also planningmany new strategies in this segment.

At CMP of INR 413, the company is trading at 6.6x FY20E EV/ EBITDA and 9.8x FY20E EPS. We value the company using average ofEV/ EBITDA and P.E. multiple methodology. We have given an exit multiple of 8x for EV/EBITDA and 12x for PE to arrive at anaverage target price of INR 512 which is an upside of 24%.

Coromandel International Ltd. | Management Meet Note |

Financial Snapshot (INR Crores) FY16 FY17 FY18 FY19E FY20E FY21E

Net Revenues 11481 10031 10947 12425 13306 14160

YoY - -13% 9% 14% 7% 6%

EBITDA 767 983 1227 1687 2116 2480

YoY - 28% 25% 38% 25% 17%

PAT 357 477 664 944 1235 1461

YoY - 33% 39% 42% 31% 18%

P/E 15.5 19.1 23.1 12.8 9.8 8.3

EPS (INR) 12.3 16.4 22.7 32.3 42.2 50.0

EV/ EBITDA 10.4 11.4 14.3 8.2 6.6 5.6

D/E 1.0 0.8 0.9 0.7 0.6 0.5










Gromor Center in Secunderabad:



Company Profile:Coromandel International Ltd (CRIN), formerly Coromandel Fertilisers Ltd, was established in 1961. The company went public in1964. It is promoted by the Murugappa group. Coromandel was formed by the joint efforts of two major companies of the US,namely Chevron Chemical Co and International Minerals and Chemicals Corp. Coromandel is a leading manufacturer of a wide rangeof fertilisers and pesticides.

The company has phosphatic fertiliser plants at Visakhapatnam & Kakinada in Andhra Pradesh and Ennore & Ranipet in Tamil Nadu.It produces phosphatic fertilisers, plant protection chemicals, speciality nutrients, sulphur bentonite and potash. Some of the majorproducts of the Coromandel International Limited are complex fertilisers, including di-ammonium phosphate (DAP), single superphosphate (SSP), speciality fertilisers etc.

CRIN has two business segments:a) Nutrient & other allied businessesb) Crop Protection

Phosphatic Fertilisers:CRIN has 16% market share in phosphatic fertilisers. They have gained magnitude by means of expansion and acquisition andcurrent capacity stands at 3.5 million tons. They account for around 22% of the domestic manufacturing capacity. Its productionfacilities at Visakhapatnam, Kakinada and Ennore provides considerable presence in South, East and West India markets.Coromandel, with its integrated manufacturing facilities at Visakhapatnam and Ennore, features among the lowest cost producers inIndia. In addition, Coromandel markets imported DAP & MOP and along with its Urea handling contracts at Kakinada in AndhraPradesh and Kandla in Gujarat, offers complete nutrient solutions to the Indian farmers.

After the DBT roll out and introducing neem coated Urea a year ago, government has mandated the industry to market Urea in 45kilogram (kg) bags instead of traditional 50 kg bags from 2018-19 onwards. The Phosphoric acid project for captive consumption,envisaged to add another 1 lakh tons of acid at Visakhapatnam unit will be completed in 2019-20.

Speciality nutrients:Coromandel has a speciality nutrients division (SND) to market speciality nutrients. This compliments their efforts in improving theIndian farm productivity by upgrading the quality of Indian soils and focuses on the marketing of concept products for Indianagriculture. New crop specific water soluble fertiliser products were introduced during the year which have received good responsefrom the market. With the government’s thrust towards promoting balanced nutrition and water use efficiency, the businessexpects significant growth opportunities in coming years. Recently, Coromandel has entered into a joint venture agreement withSociedad Quimicay Minera, Chile to set up a water soluble fertiliser (WSF) plant for manufacturing WSF at Coromandel's KakinadaPlant.

Retail:The retail arm of Coromandel was started in the year 2007 with 2 outlets in Andhra Pradesh and by 2013-14 the business expandedto over 665 retail centers in rural Andhra Pradesh and Karnataka. Coromandel's retail centers are located at Mandal, AndhraPradesh. Each retail center has an average area of 1750 square feet with a catchment area of 30-40 villages and about 5,000 farmerfamilies. Currently, they operate a network of around 800 rural retail outlets across Andhra Pradesh, Telangana, Karnataka andMaharashtra.

To improve farm advisory services, ‘Gromor Advisory Council’ comprising of scientists from leading agriculture universities wasconstituted and nutritional package of practices for eight crops were developed. They expanded to Western Maharashtra byopening four new stores during the year. They also partnered with the Andhra Pradesh Government to open five new Custom Hiring& Service Centres (CHSC) for providing farm mechanization services. Each retail center has an average area of 1750 square feet witha catchment area of 30-40 villages and about 5,000 farmer families.

Crop Protection:The company’s major products in crop protection include Mancozeb, Acephate, Monocrotophos and Profenofos. These constitute85 ‐ 90% of volumes, with Mancozeb making up ~50%. Coromandel is the second largest manufacturer of Malathion and is the majormanufacturer of Phenthoate in Asia. By taking over M/s Sabero Organics in 2011, Coromandel has added many technicals to itsrange of products and is currently among the top 5 Indian companies in Indian Pesticide Industry. The Company has globalregistrations in 62 countries and has strong presence in export markets of Latin America, SE Asia & Africa.

The company’s crop protection chemicals (CPC) business has three R&D centers at Ankleshwar, Sarigam and Hyderabad. The newlyestablished Hyderabad R&D center is concentrating on development of new off patent molecules, synthesizing impurities forvarious products to ease the registration process.

During FY 17-18, they acquired the Bio pesticide business from E.I.D Parry (India) Limited which would enable the business to gainentry in high growth bio pesticide segment in Indian, North American and European markets. The transaction is valued at INR 338crore and includes purchase of bio-pesticides business of E.I.D. Parry together with its R&D unit, captive plantations and its wholly-owned subsidiary Parry America, Inc.








Source: NSPL Research, department of fertilisers

11

48

1

10

03

1

10

94

7

12

42

5

13

30

6

14

16

0

2016 2017 2018 2019E 2020E 2021E

Revenue from operations (INR Crores)

Revenue from operations

767

983

1,22

7

1,68

7

2,11

6

2,48

0

6.7%

9.8%11.2%

13.6%

15.9%17.5%

0.0%

5.0%

10.0%

15.0%

20.0%

0

500

1,000

1,500

2,000

2,500

3,000

2016 2017 2018 2019E 2020E 2021E

%

INR

Cro

res

EBITDA EBITDA Margin

357

477

664

944

1,23

5

1,46

1

3.1%

4.8%

6.1%

7.6%

9.3%10.3%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0

200

400

600

800

1,000

1,200

1,400

1,600

2016 2017 2018 2019E 2020E 2021E

%

INR

Cro

res

PAT PAT Margin

1.00

0.77

0.87

0.70

0.63

0.70

2016 2017 2018 2019E 2020E 2021E

D/E Ratio

D/E Ratio

21

.95

23.9

6

23

.48

24

.31

27

.25

0.3 1

.66

3.36

0.5

5

0.4

2

FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18

Manufactured Imported

0%

10%

20%

30%

40%

2016 2017 2018 2019E 2020E 2021E

%

Gross Margins EBITDA Margin

EBIT Margin PAT Margin

14

%

16

%

21

%

26

%

29

%

30

%

2016 2017 2018 2019E 2020E 2021E

RoE

RoE

14%

18%

20%

27%

30%

32%

2016 2017 2018 2019E 2020E 2021E

RoCE

RoCE

Coromandel Phosphatic Fertiliser Sales (Lakh tons)

PAT & PAT Margin EBITDA & EBITDA Margin

Margins







Source: NSPL Research

Profit & Loss (INR Crores) FY16 FY17 FY18 FY19E FY20E FY21E

Net sales 11,481.4 10,030.8 10,946.7 12,425.1 13,306.4 14,159.5

COGS 8,723.1 7,121.0 7,559.3 8,490.4 8,698.6 9,051.6

Employee Expenses 291.9 310.8 351.0 374.5 406.7 444.6

Other Expenses 1,699.7 1,616.3 1,809.4 1,872.9 2,084.6 2,183.6

EBITDA 766.8 982.7 1,226.9 1,687.3 2,116.5 2,479.8

D&A 106.1 100.7 97.6 125.0 132.6 142.5

Other income 66.5 54.8 58.4 83.4 90.1 92.3

EBIT 727.2 936.8 1,187.7 1,645.8 2,074.0 2,429.6

Interest Expense 220.9 223.8 178.3 209.9 195.7 208.1

PBT 531.2 713.0 1,009.4 1,435.8 1,878.3 2,221.5

Exceptional Items 25.0 0.0 0.0 0.0 0.0 0.0

Tax 171.6 235.3 345.2 491.0 642.3 759.7

Share of profit/ (loss) of joint ventures -2.2 -0.7 -0.6 -1.2 -0.8 -0.9

PAT 357.4 477.0 663.6 943.7 1,235.2 1,461.0

EPS in INR 12.3 16.4 22.7 32.3 42.2 50.0

Balance Sheet FY16 FY17 FY18 FY19E FY20E FY21E

EQUITY AND LIABILITIES

Shareholders' Equity 2634.0 2890.8 3125.9 3628.4 4221.6 4888.0

Other financial liabilities 1.6 1.2 1.3 1.6 1.6 1.7

Provisions 17.8 14.2 14.4 17.5 18.2 19.3

Deferred tax liabilities (net) 167.9 149.5 129.0 204.4 213.1 224.5

Other non-current liabilities 10.7 10.2 9.8 11.6 12.5 13.1

Current liabilities

Borrowings 2582.6 2228.4 2728.4 2532.8 2640.1 2650.4

Trade payables 3232.9 2934.5 3359.0 3721.8 3754.3 3965.5

Other financial liabilities 353.9 312.2 243.3 344.5 357.0 362.0

Provisions 7.9 14.7 9.1 12.2 14.4 13.6

Current tax liabilities (net) 38.7 16.4 22.0 25.7 21.3 23.0

Other current liabilities 89.6 72.8 85.3 93.6 99.5 107.5

Total liabilities 6305.6 5579.1 6447.0 6730.7 6886.8 7122.1

Total equity and liabilities 9181.7 8645.0 9727.3 10594.2 11353.8 12268.7

ASSETS

Non-current assets

Property, plant and equipment 1310.1 1315.9 1293.5 1647.9 1739.8 1819.1

Capital work-in-progress 30.9 13.7 35.9 26.8 25.4 29.4

Goodwill 0.3 0.3 0.3 0.3 0.3 0.3

Other intangible assets 9.1 11.3 11.1 10.5 11.0 10.9

Intangible assets under development 10.8 8.3 10.6 11.2 11.9 13.0

Financial assets 0.0 0.0 0.0 0.0 0.0 0.0

Investments 0.0 0.0 0.0 0.0 0.0 0.0

Investments in joint ventures 14.7 16.8 16.2 15.9 16.3 16.1

Other investments 462.3 371.6 205.1 216.4 227.6 240.0

Other financial assets 15.8 0.0 0.0 0.0 0.0 0.0

Income tax assets (net) 0.6 0.3 0.5 0.5 0.4 0.5

Other non-current assets 79.7 70.3 89.1 90.5 98.8 107.7

Current assets

Inventories 2345.8 1724.6 2227.1 2280.3 2335.2 2509.3

Investments 0.3 0.1 0.1 0.2 0.2 0.2

Trade receivables 1641.9 1621.7 1523.4 1531.9 1640.5 1745.7

Government subsidies receivable 2367.1 2557.0 2626.9 3020.9 3323.0 3655.3

Cash and cash equivalents 174.5 146.7 441.9 807.8 845.0 881.2

Bank Balances 23.3 21.1 108.9 57.9 73.8 94.9

Loans 480.0 522.3 407.8 425.4 444.0 462.4

Other financial assets 42.4 37.9 21.6 38.6 39.0 37.8

Other current assets 172.3 205.3 707.3 411.3 521.6 645.0

Total assets 9181.7 8645.0 9727.3 10594.2 11353.8 12268.7







RATIOS FY16 FY17 FY18 FY19E FY20E FY21E

Profitability

Return on Capital Employed (%) 14% 18% 20% 27% 30% 32%

Return on Equity (%) 14% 16% 21% 26% 29% 30%

Return on Assets (%) 4% 6% 7% 9% 11% 12%

Margin Trend

EBITDA Margin (%) 7% 10% 11% 14% 16% 18%

Net profit Margin (%) 3% 5% 6% 8% 9% 10%

Solvency

Total Debt / Equity 1.0 0.8 0.9 0.7 0.6 0.5

Valuation Ratios

P/E 15 19 23 13 10 8

P/B 4.6 4.2 3.9 3.3 2.9 2.5

EV/ EBITDA 10.4 11.4 14.3 8.2 6.6 5.6

Cash Flow (INR Crorers) FY16 FY17 FY18 FY19E FY20E FY21E

PBT 529.06 712.30 1,008.79 1,434.67 1,877.52 2,220.65

Operating profit before working capital changes 942.79 993.27 1,334.51 1,686.19 2,115.65 2,478.93

Operating profit after working capital changes 191.91 1,180.31 602.55 2,085.24 1,590.43 1,973.29

Less income tax paid -173.53 -265.07 -347.00 -490.99 -642.32 -759.67

Cash Flow from Operating 18.38 915.24 255.55 1,594.24 948.12 1,213.62

(Incr)/ Decr in Gross PP&E -107.58 -89.80 -114.25 -470.32 -224.24 -226.85

Cash Flow from Investing -61.41 -78.60 40.63 -381.63 -180.56 -185.11

Cash Flow from Financing 8.48 -864.40 -0.98 -846.73 -730.33 -992.32

Incr/(Decr) in Balance Sheet Cash -34.55 -27.76 295.20 365.88 37.23 36.19

Cash at the Start of the Year 208.82 174.48 146.71 441.90 807.78 845.01

Cash at the End of the Year 174.48 146.71 441.90 807.78 845.01 881.21

No. of transactions in the month of October eligible for DBT

Name of the PSU/Fertilizers Company No. of Digital Transaction made in the Month

CFCL 3973

CRIN 2443

GSFC 2440

PPL 1613

KRIBHCO 1443

IFFCO 1345

SPIC 1243

NFL 1190

RCF 992

HINDALCO 869

Zuari 811

GFL 732

FACT 461

Smartchem 317

MCFL 315

GNFC 211

BVFCL 144

Yara 98

MFL 36

NFCL 36

SFC 11

Source: NSPL Research, mfms.nic.in






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Disclaimer:This report has been prepared by Nalanda Securities Pvt. Ltd(“NSPL”) and published in accordance with the provisions of Regulation 18 of the Securities and Exchange Board of India(Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for circulation or public distribution. NSPL includes subsidiaries, group and associatecompanies, promoters, directors, employees and affiliates. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available toothers, in any form, in whole or in part, for any purpose without prior written permission from NSPL. The projections and the forecasts described in this report are based upon anumber of estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and itcan be expected that one or more of the estimates on which the projections are forecasts were based will not materialize or will vary significantly from actual results and suchvariations will likely increase over the period of time. All the projections and forecasts described in this report have been prepared solely by authors of this report independently.None of the forecasts were prepared with a view towards compliance with published guidelines or generally accepted accounting principles.This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything containedtherein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into accountthe particular investment objective, financial situation or needs of individual clients. The research analysts of NSPL have adhered to the code of conduct under Regulation 24 (2) ofthe Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their owninvestment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particularcircumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. NSPL does not take any responsibility thereof. Any such recipient shall beresponsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved insecurities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investorsmay realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.Except for the historical information contained herein, statements in this report, which contain words such as ‘will’, ‘would’, etc., and similar expressions or variations of such wordsmay constitute ‘forward‐looking statements’. These forward‐looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differmaterially from those suggested by the forward‐looking statements. Forward‐looking statements are not predictions and may be subject to change without notice. NSPL undertakesno obligation to update forward‐looking statements to reflect events or circumstances after the date thereof. NSPL accepts no liabilities for any loss or damage of any kind arising outof use of this report.This report has been prepared by NSPL based upon the information available in the public domain and other public sources believed to be reliable. Though utmost care has beentaken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by NSPL that such information is accurate or complete and/or isindependently verified. The contents of this report represent the assumptions and projections of NSPL and NSPL does not guarantee the accuracy or reliability of any projection,assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable orappropriate to recipients’ specific circumstances. This report is based / focused on fundamentals of the Company and forward‐looking statements as such, may not match with areport on a company’s technical analysis report. This report may not be followed by any specific event update/ follow‐up.

Following table contains the disclosure of interest in order to adhere to utmost transparency in the matter;

Disclosure of Interest Statement

Details of Nalanda Securities Pvt. Limited (NSPL)

• NSPL is a Stock Broker registered with BSE, NSE and MCX ‐ SX in all the major

segments viz. Cash, F & O and CDS segments. Further, NSPL is a Registered

Portfolio Manager and is registered with SEBI

• SEBI Registration Number: INH000004617

Details of Disciplinary History of NSPL No disciplinary action is / was running / initiated against NSPL

Research analyst or NSPL or its relatives'/associates' financial interest in

the subject company and nature of such financial interest

No (except to the extent of shares held by Research analyst or NSPL or its

relatives'/associates')

Whether Research analyst or NSPL or its relatives'/associates' is holding

the securities of the subject companyNO

Research analyst or NSPL or its relatives'/associates' actual/beneficial

ownership of 1% or more in securities of the subject company, at the

end of the month immediately preceding the date of publication of the

document

NO

Research analyst or NSPL or its relatives'/associates' any other material

conflict of interest at the time of publication of the documentNO

Has research analyst or NSPL or its associates received any compensation

from the subject company in the past 12 monthsNO

Has research analyst or NSPL or its associates managed or co‐managed

public offering of securities for the subject company in the past 12 monthNO


for investment banking or merchant banking or brokerage services from

the subject company in the past 12 months

NO


for products or services other than investment banking or merchant

banking or brokerage services from the subject company in the past 12

months

NO


or other benefits from the subject company or third party in connection

with the document.

NO

Has research analyst served as an officer, director or employee of the

subject companyNO

Has research analyst or NSPL engaged in market making activity for the

subject companyNO

Other disclosures NO

Rating Legend

Strong Buy More than 15%

Buy 5% - 15%

Hold 0 – 5%

Reduce -5% - 0

Sell Less than -5%

Coromandel International Ltd.

Date CMP (INR) Target Price (INR) Recommendation

November 20, 2018 413 512 Strong Buy

October 30, 2018 (Q2FY19 Result Update) 395 501 Strong Buy

October 12, 2018 (Company Update) 382 495 Strong Buy







institutional research e coromandel international ltd....e coromandel international ltd. november...

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