Buy Coromandel Interntl.: IIFL Securities's Target Price Rs 1835
IIFL Securities recommends buying Coromandel International at the current market price of Rs 1791.95, with a target price of Rs 1835. This represents a potential upside of approximately 2.4%. The brokerage firm cites the company's strong financial performance, healthy demand for its products, and expansion plans as reasons for its bullish stance.
About Coromandel Interntl.:
Coromandel International Limited (CIL), a part of the Murugappa Group, is a leading agro-chemical company in India. Established in 1943, CIL has a strong presence in the crop protection, specialty nutrients, and organic fertilizers markets. The company offers a wide range of products, including insecticides, fungicides, herbicides, micronutrients, biopesticides, and soil conditioners. CIL has a nationwide distribution network and a strong R&D team, which enables it to develop and introduce innovative products to the market. The company also has a presence in the international market, with operations in over 20 countries.
52 Week Price Trend:
Coromandel International (NSE: COROMANDEL) is currently trading at Rs 1791.95. This price point represents a significant appreciation compared to its 52-week low of Rs 841.5. The stock has also outperformed its 52-week high of Rs 1287.95. This uptrend indicates strong investor sentiment and positive market outlook for Coromandel International. The company's robust financial performance, driven by its core fertilizer business and diversified portfolio, has contributed to this sustained growth. Investors remain看好 on the long-term prospects of Coromandel International, given its strong brand recognition, innovative products, and market leadership in the Indian fertilizer industry.
Stratzy's MOST Analysis:
Coromandel International Limited, rated AA- by Stratzy's MOST framework, demonstrates strong management, a promising outlook, adequate safety, and a consistent trend. The company's solid fundamentals and strategic initiatives translate into low fundamental risks. Its management team effectively executes plans to enhance profitability and drive growth. Coromandel's positive outlook reflects its focus on innovation, market expansion, and sustainability. While the company's safety measures are sound, there is room for further improvement to mitigate potential risks. Overall, the AA- rating indicates Coromandel's strong financial health and potential for continued success.
Company's Fundamentals:
Coromandel International (NSE:COROMANDEL) is a highly valued stock with a trailing price-to-earnings (PE) ratio of 18.15, indicating that investors are willing to pay a premium for its earnings growth potential. Despite its high PE, the company's price-to-book (PB) ratio of 3.45 suggests that its assets are still undervalued relative to its market capitalization. Additionally, Coromandel offers a modest dividend yield of 1.13%, providing investors with a steady stream of passive income. Overall, the combination of high PE, moderate PB ratio, and modest dividend yield suggests that Coromandel is a growth stock with some value appeal.
Fundamental and Technical information provided in this blog were last updated on 07 Nov, 2024
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