Coromandel International Ltd is Rated Hold

Current Rating and Its Significance

MarketsMOJO’s 'Hold' rating for Coromandel International Ltd indicates a balanced view on the stock’s prospects. It suggests that while the company maintains solid fundamentals, there are factors that temper enthusiasm for immediate buying. Investors are advised to maintain their existing positions rather than aggressively accumulate or divest at this stage. This rating reflects a comprehensive evaluation of the company’s quality, valuation, financial trends, and technical outlook as of today.

Quality Assessment: Strong Fundamentals Underpin Stability

As of 11 February 2026, Coromandel International exhibits excellent quality metrics. The company boasts a robust long-term Return on Equity (ROE) averaging 20.41%, signalling efficient capital utilisation and consistent profitability. Net sales have grown at an impressive annual rate of 16.45%, underscoring healthy demand and operational strength in the fertiliser sector. Additionally, the company maintains a conservative capital structure with an average Debt to Equity ratio of just 0.03 times, reflecting minimal leverage and financial prudence. These quality indicators provide a solid foundation for the company’s ongoing operations and future growth potential.

Valuation: Premium Pricing Reflects Market Expectations

Despite strong fundamentals, Coromandel International is currently valued as very expensive. The stock trades at a Price to Book (P/B) ratio of 5.5, which is significantly higher than the average for its peers in the fertiliser sector. This premium valuation is supported by a Price/Earnings to Growth (PEG) ratio of approximately 1.1, indicating that the market prices in expected earnings growth. The company’s ROE of 17.5% relative to its valuation suggests investors are paying a premium for quality and growth prospects. However, this elevated valuation warrants caution, as it limits upside potential and increases sensitivity to any adverse developments.

Financial Trend: Flat Recent Results Amidst Growth Challenges

The latest financial data as of 11 February 2026 reveals a flat performance in the December 2025 half-year results. Interest expenses have risen sharply by 38.47% to ₹185.31 crores, which may pressure profitability going forward. The Debt to Equity ratio has increased to 0.12 times in the half-year, though it remains low by industry standards. Cash and cash equivalents stand at ₹1,362.74 crores, the lowest in recent periods, signalling a tighter liquidity position. While the company’s profits have grown by 28.8% over the past year, these mixed financial trends contribute to a cautious stance on the stock’s near-term outlook.

Technicals: Mildly Bearish Momentum Suggests Caution

From a technical perspective, Coromandel International’s stock shows mildly bearish signals as of 11 February 2026. The short-term price movements have been subdued, with a one-day decline of 0.55% and a one-month drop of 2.31%. However, the stock has delivered a strong 24.06% return over the past year, outperforming the BSE500 index over one, three, and even three-month periods. This mixed technical picture suggests that while the stock has demonstrated resilience and market-beating performance in the longer term, recent price action advises investors to monitor momentum closely before initiating new positions.

Stock Returns and Market Positioning

Currently, Coromandel International’s stock has delivered a 24.06% return over the last year, reflecting solid investor confidence and operational success. The company’s midcap status within the fertiliser sector places it in a competitive position, supported by high institutional holdings of 30.49%. Institutional investors typically possess superior analytical resources, which lends credibility to the stock’s valuation and outlook. The company’s ability to outperform broad market indices over multiple timeframes further highlights its strength, though the 'Hold' rating suggests that investors should weigh valuation risks carefully.

Here's How the Stock Looks TODAY

As of 11 February 2026, Coromandel International Ltd presents a nuanced investment case. Its excellent quality metrics and strong long-term fundamentals are offset by a very expensive valuation and flat recent financial results. The mildly bearish technical indicators add a layer of caution for near-term price movements. Together, these factors justify the current 'Hold' rating, signalling that investors should maintain existing holdings while awaiting clearer signs of valuation normalisation or improved financial momentum.

Investor Takeaway

For investors, the 'Hold' rating on Coromandel International Ltd suggests a prudent approach. The company’s strong fundamentals and market-beating returns over the past year make it a reliable player in the fertiliser sector. However, the current premium valuation and flat recent financial trends imply limited near-term upside. Investors should consider maintaining their positions while monitoring upcoming quarterly results and market developments that could influence valuation and momentum.

Sector and Market Context

Within the fertiliser sector, Coromandel International remains a key midcap stock with a solid track record of growth and profitability. The sector itself faces cyclical pressures and regulatory factors that can impact earnings visibility. The company’s low leverage and strong cash position provide resilience against sector volatility. Nonetheless, investors should remain vigilant to broader market conditions and commodity price fluctuations that may affect future performance.

Conclusion

In summary, Coromandel International Ltd’s current 'Hold' rating by MarketsMOJO reflects a balanced assessment of its strengths and challenges as of 11 February 2026. The company’s excellent quality and long-term growth are tempered by expensive valuation and recent flat financial results. Technical indicators suggest cautious optimism but advise close monitoring. This rating guides investors to maintain existing holdings while awaiting clearer signals for renewed buying opportunities or valuation adjustments.

Unlock special upgrade rates for a limited period. Start Saving Now →