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Coromandel International Rated 'Buy' As Systematix Initiates Coverage — Check Target Price

Coromandel's current valuation does not fully capture the long-term benefits of its capacity expansion, portfolio diversification and increasing share of value-added businesses, offering an attractive risk-reward opportunity for investors with a medium- to long-term investment horizon, believes the brokerage.

Coromandel International Rated 'Buy' As Systematix Initiates Coverage — Check Target Price
Systematix believes Coromandel deserves to trade at a premium to the broader agrochemical and fertiliser peer group.
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Coromandel International Ltd.
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Report

Domestic brokerage firm Systematix has initiated coverage on Coromandel International Ltd., India's largest private phosphatic fertilizer manufacturer and the flagship agri-inputs vehicle of the Murugappa Group, with a Buy rating and a 12-month target price of Rs 2,510 (16 times FY28E Ebitda), implying ~26% upside.

The  brokerage believes Coromandel deserves to trade at a premium to the broader agrochemical and fertiliser peer group, supported by its market leadership in phosphatic fertilizers, rapidly scaling crop protection franchise, increasing contribution from high-margin specialty nutrients, and improving backward integration.

The company's strong balance sheet, healthy free cash flow generation, disciplined capital allocation and consistent return ratios provide further comfort on the sustainability of earnings growth. In the brokerage's view, the current valuation does not fully capture the long-term benefits of its capacity expansion, portfolio diversification and increasing share of value-added businesses, offering an attractive risk-reward opportunity for investors with a medium- to long-term investment horizon.

Click on the attachment to read the full report:

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This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

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