Nuvama has upgraded Coromandel International to a ‘Buy’ rating, raising its target price to ₹2,347 per share, citing multiple growth catalysts and a promising outlook following the company’s recent analyst meet. The firm highlighted several key factors contributing to its optimism, including backward integration that is expected to improve EBITDA per ton by 40%, translating to gains of approximately ₹6,000–₹7,000 per ton.
Additionally, Coromandel’s focus on organic and inorganic growth opportunities in the crop protection business has garnered investor confidence. The company also outlined plans to double its retail footprint, deepen its presence in the northern market, and establish a pan-India presence, which could significantly bolster its market reach.
Nuvama emphasized Coromandel’s exploration of adjacent growth opportunities, including CDMO, specialty chemicals, drones, nano fertilisers, and biologicals, as critical growth levers. The brokerage firm further praised the company’s disciplined capital allocation and robust return ratios, which merit a valuation premium.
In light of these developments, Nuvama has revised its FY26E and FY27E EPS estimates upward by 2% and 4%, respectively, and values the company at 25x FY27E EPS. The report reflects confidence in Coromandel International’s ability to sustain growth and deliver strong returns, positioning it as a compelling investment opportunity.
