Coromandel Int'l surges 6%, hits record high; EID Parry nears 52-week high

Cholamandalam Investment and Cholamandalam Financial Holdings were also up between 5 per cent and 9 per cent on the BSE.

Shares of Murugappa Group companies were trading higher on Wednesday with Coromandel International hitting a new high, while EID Parry (India) trading close to its 52-week high on the BSE in the intra-day trade.

Besides these two, Cholamandalam Investment and Finance Company and Cholamandalam Financial Holdings were up between 5 per cent and 9 per cent on the BSE. In comparison, the S&P BSE Sensex was up 0.46 per cent at 33,761 level at 02:17 pm.

Coromandel International hit a new high of Rs 720, up 6.2 per cent on the BSE today, surpassing its previous high of Rs 700 recorded on May 27, 2020. The fertilisers and crop protection products manufacturer reported a 91.9 per cent jump in profit before tax (PBT) at Rs 314.16 crore for the quarter ended March 31, 2020 (Q4FY20) as compared to Rs 163.71 crore in the corresponding quarter of the previous year.

The company’s Q4FY20 EBITDA (earnings before interest, taxes, depreciation, and amortisation) margins improved 378bps year-on-year (YoY) to 13.6 per cent on the back of 401bps improvement in the Nutrient segment’s EBIT margins.

“The company generated robust operating cash flow of Rs 1,870 crore in FY20 (Rs 510 crore in FY19) on the back of a shift in the mix away from Urea, and 15-day reduction in inventory due to a strong season,” analysts at Emkay Global Financial Services said.

EID Parry (India), meanwhile, surged 7 per cent to Rs 236.90 on the BSE in the intra-day trade today. The stock was quoting close to its 52-week high level of Rs 245.35, touched on February 2, 2020. In the past one month, it has zoomed 56 per cent as compared 8 per cent rise in the S&P BSE Sensex.

On June 2, 2020, EID Parry had sold 5.85 million equity shares, representing 2 per cent stake, in its subsidiary, Coromandel International at Rs 629.19 per share aggregating to a value of Rs 368 crore. The company said proceeds from the sale will be utilised towards reduction of debt.

The company reported a healthy 30 per cent YoY jump in consolidated EBITDA at Rs 639 crore for Q4FY20, as against Rs 490 crore in the corresponding quarter of the previous fiscal. EBITDA margin improved to 15.05 per cent from 13.44 per cent during the quarter.