BSE Index Analysis, Securties , Standard Experts
Coromandel International - standalone recurring earnings
Coromandel International : Q4 Margin Dip - An Aberration......
Reco : Buy
Cmp : 277
Target : 350
Coromandel reported Q4FY12 standalone recurring earnings of Rs 1.3 bn (+47% YoY) led by dividend income of Rs 0.5 bn from CFL, Mauritius (100% subsidiary).
The company pushed its sales aggressively during the quarter due to governmentâ³ decision to sharply reduce FY13 NBS subsidy, which led to lower EBITDA margin of US$ 26/tn (vs. US$ 41/tn in Q3FY12).
Fertilizer sales volumes increased 100% YoY to 0.9 mnte, which may impact Q1FY13 sales volumes.
Key takeaways
Domestic market oversupplied over next 1-2 quarters due to high industry wide inventory levels (2.5-3 mn tn)
Kakinada project on track to get commissioned in September
TIFERT start-up delayed to Sept (May earlier); Coromandel to receive 0.1 mnte phosphoric Acid Sabero utilization expected to reach 70-75% in next 2-3 years (currently 40-45%) once environmental issues are resolved (expected in 4-5 months) .
Company has announced total dividend of Rs 7/share in FY13, implying 2.5% dividend yield. Read detailed report.
Key takeaways
Domestic market oversupplied over next 1-2 quarters due to high industry wide inventory levels (2.5-3 mn tn)
Kakinada project on track to get commissioned in September
TIFERT start-up delayed to Sept (May earlier); Coromandel to receive 0.1 mnte phosphoric Acid Sabero utilization expected to reach 70-75% in next 2-3 years (currently 40-45%) once environmental issues are resolved (expected in 4-5 months) .
Company has announced total dividend of Rs 7/share in FY13, implying 2.5% dividend yield. Read detailed report.
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