Fertilizer stock jumps 5% after announcing ₹1,539 Cr investment for plant expansion

Leading Company in India’s agriculture sector is in focus after getting an Expansion order from the Andhra Pradesh government for the expansion of its fertilizer manufacturing facility.

Stock Price Movement

With a market capitalization of Rs. 54,157 Crore, the stock of Coromandel International opened at Rs. 1783.25 down 1.89 percent from yesterday’s close, but later it made a high of 1,912.70 up 5.11 percent. Additionally, the 1 month’s return for the stock is 2 percent, and the past 5-year return is 190 percent. 

Order Update

Coromandel International has received an order from the Government of Andhra Pradesh extending capital and other subsidies for the expansion of its fertilizer manufacturing facility in Kakinada.

As per the Government Order issued by the Industries & Commerce (P&I) Department, the company has been granted an incentive of 45% of the eligible Fixed Capital Investment, subject to certain compliances and conditions. The total proposed investment will be Rs. 1,539 Crores

Also read: Reliance Group stock crashes 8% after Goldman Sachs sells 34 lakh shares via bulk deal

Financial Highlights

The company reported a 21.30 percent YoY increase in revenue from operations from Rs. 5450.33 Crore in Q3FY24 to Rs. 6925.83  Crore in Q3FY25. On a QoQ basis, the company reported a decrease of 6.81 percent in revenue from operations from Rs. 7432 Crore in the previous quarter. 

Their Net profit saw a 116.56 percent YoY increase from Rs. 242.51 Crore to Rs. 525.18 Crore for the same period. On a QoQ, basis their net profits also saw a decrease of  24.52 percent from Rs. 695.86 Crore for the same period.

The Operating Profit Margin for Q3FY25 stood at 12.12 percent compared to 7.67 percent for Q3FY24, and the Net Profit Margin stood at 7.58 percent from 4.45 percent for the same period.

About the Company

Coromandel International Limited, part of the Murugappa Group, is a leading Indian agri-input company specializing in fertilizers, crop protection, and specialty nutrients. 

It operates a vast network of rural retail stores, offering farming solutions, expert guidance, and high-quality products to support agricultural growth, and one of the most trusted agricultural brands in India with a relentless focus on bettering the lives of farmers, their immediate milieu, and all our stakeholders. Adding to this, we also have the highest brand equity index in operating segments in key markets.

Written By Abhishek Das

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