The shares of this fertilizer stock jumped by approximately 5 percent after the company got clearance from the Competition Commission of India for its Rs 820 crore acquisition in NACL.
With a market capitalization of Rs 68,299 crores, the shares of Coromandel International Ltd are currently trading at Rs 2,316 per share, representing a 12.60 percent decline from its 52-week high of Rs 2,649.95 per share. Over the past five years, the stock has delivered a robust return of 208.44 percent.
Additionally, with a market capitalization of Rs 5,079 crores, the shares of NACL Industries Ltd hit the 5 percent upper circuit today and is currently trading at Rs 252 per share. Over the past five years, the stock has delivered a robust return of 557 percent.
The Competition Commission of India (CCI) has approved a significant deal, allowing Coromandel International Ltd., part of the Murugappa Group, to take control of NACL Industries Ltd., a listed agrochemical company.
Under the agreement, Coromandel will buy a 53.13 percent stake in NACL by acquiring over 10.68 crore shares from KLR Products Ltd., promoter K. Lakshmi Raju, and Bright Town Investment Advisor Pvt. Ltd. for about Rs 820 crore. Once the transaction and open offer are complete, Coromandel will become the majority owner of NACL Industries.
Additionally, Coromandel will purchase 5,500 shares each from two public shareholders, Krishi Rasayan Exports Pvt Ltd and Agro Life Science Corporation, through separate share purchase agreements (SPAs) dated March 12, 2025.
With CCI’s approval, Coromandel also plans to make an open offer to purchase up to an additional 26 percent stake from public shareholders, following SEBI’s takeover guidelines.
NACL Industries is a public agrochemical company that provides a wide range of crop protection products. Coromandel International Ltd. (CIL) specializes in agricultural solutions, primarily in nutrients and crop protection. This acquisition will enhance CIL’s position in the agrochemical industry.
Financial Highlights
The company reported a revenue of Rs 24,085 crores in FY25, up by 9.19 percent from its FY24 revenue of Rs 22,058 crores. Additionally, the company reported a net profit growth of 25.22 percent to Rs 2,055 crore in FY25 from Rs 1,641 crore in FY24.
The stock delivered an ROE and ROCE of 17.49 percent and 24.09 percent, respectively, and is currently trading at a P/E of 38.06x as compared to its industry average of 29x.
Coromandel International Ltd. provides agriculture solutions in India and around the world through its Nutrient and Crop Protection segments. It offers a variety of fertilizers, specialty nutrients, and organic products.
The company also sells insecticides, herbicides, fungicides, and plant growth regulators. Additionally, it operates rural retail stores that offer services such as soil testing, crop diagnostics, and farm mechanization in states like Andhra Pradesh, Telangana, and Karnataka.
Written By Satyajeet Mukherjee
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