Coromandel International- Positive surprise by EBITDA margins BUY:: Emkay,

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Coromandel International

Positive surprise by EBITDA margins

BUY

CMP: Rs307                                        Target Price: Rs435

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n     Q2FY12 APAT of Rs 2.6 bn, +17%yoy, was ahead of est driven by higher than estimated EBITDA margins at 13.8% (85bps yoy / 130bps qoq)

n     Revenue growth of 5.7% yoy to Rs 27.2 bn despite 12% decline in volumes (emkay est) is led by higher fertiliser prices which were up by 30-40% yoy

n     Volume growth to pick up in H2FY12 due to improved availability of phos acid from Tunisia and increased imports of MOP to facilitate higher NPK production

n     Announced bonus debenture of Rs 15 / - for every one share, Maintain estimates of Rs 26.4/Rs 32.3 for FY12 & FY13 resp and maintain our BUY reco on the stock