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Coromandel is India’s largest phosphatic fertilizer company with presence in crop protection and rural retail stores as well. Government regulation, monsoon vagaries and mispricing of fertilizers results in volatility in earnings. Fluctuation in raw material prices has also impacted margins, however commissioning of phosphoric acid will reduce external dependence on this critical input. Gradual implementation of DBT scheme should reduce outstanding for subsidy and improve working capital. We have an over weight rating despite volatile performance matrix due to expectation of good monsoons, adequate water in reservoirs leading to higher demand for company’s products. The pandemic impact has been minimal as rural areas are less affected and agriculture is an essential service – 27-07-2020 Price: 779.30 Rating: Over Weight Recommendation: Buy

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