Coromandel International Limited: Comprehensive Stock Analysis Report | Scrolls

by KarNivesh | 23 October, 2025

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Coromandel International Limited is one of India’s leading agri-solution providers, serving farmers for over six decades. The company, part of the prestigious Murugappa Group, has grown from being a fertilizer manufacturer to offering complete farming solutions — from fertilizers and crop protection to retail services for farmers.

Over the past five years, Coromandel’s stock has shown remarkable growth — jumping from ₹792 in 2020 to ₹2,179 in 2025, a gain of 175%. This performance reflects investor confidence in its business strength and market leadership.

Business Overview

Coromandel operates mainly through two key segments:

1. Nutrient and Allied Business (85% revenue): This includes fertilizers, organic and bio-products. The company has a strong hold in southern India with a 40% market share in unique grade fertilizers and leads in SSP sales nationwide.

2. Crop Protection (15% revenue): This segment deals with insecticides, fungicides, and herbicides, exporting to over 50 countries.

The company also runs India’s largest bio-pesticide facility in Tamil Nadu and operates around 900 “Mana Gromor” retail outlets providing soil testing, crop advice, and farm mechanization services to millions of farmers every year.

Revenue and Net Profit comparison for Coromandel International over five fiscal years, showing revenue growth from ₹14,182 Cr to ₹24,085 Cr and net profit increasing from ₹1,329 Cr to ₹2,055 Cr.

Financial Performance

Coromandel’s revenue grew from ₹14,182 crores in FY2021 to ₹24,085 crores in FY2025, showing a strong growth rate. Net profit also rose from ₹1,329 crores to ₹2,055 crores during this time. The company’s debt is almost zero, giving it financial stability and room for future expansion.

Return on Equity (ROE) and Return on Capital Employed (ROCE) remain healthy at 20.07% and 23.63%, reflecting efficient use of capital. Its book value per share has more than doubled in five years, highlighting consistent wealth creation.

Investor Confidence

Promoters hold around 56.9% of the shares, while foreign institutional investors (FIIs) have increased their stake to 14.28%, showing strong global confidence. Mutual funds and retail investors also hold meaningful portions, making ownership diverse and stable.

Valuation and Market Position

The stock trades at a premium valuation with a P/E ratio of 28.41x and a P/B of 5.8x. Although costlier than its peers like Chambal Fertilizers or Deepak Fertilizers, the higher valuation reflects Coromandel’s leadership, diversified operations, and consistent growth.

Growth Outlook

Coromandel’s future looks promising with projects like backward integration in raw materials, specialty chemicals expansion, drone technology for precision farming, and the recent acquisition of NACL Industries to strengthen its crop protection business. The company’s push into sustainable products like bio-fertilizers and nano DAP also aligns with the growing focus on eco-friendly farming.

Conclusion

Coromandel International is a financially strong, well-managed company with a proven track record of performance. While its shares trade at a premium, the company’s strong fundamentals, innovation, and leadership in India’s agriculture sector make it an attractive long-term investment choice. For beginners, it represents a reliable way to invest in India’s growing agri-economy through a trusted and established name.