Stock Recommendation: An attractive earnings compounder

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15 thoughts on “Stock Recommendation: An attractive earnings compounder”

    1. As mentioned in our philosophy, there is no target price (we see it as a brokerage practice to churn :-)) If our thesis becomes unviable we issue sell calls and as a subscriber you will receive them. thanks, Vidya

  1. Murali Krishnamurthy

    Risks mentioned in the article doesn’t give much confidence. All these can happen with high probability. Govts generally don’t need to take pragmatic decisions due to pulls from different directions. Eg: the current farmer vs govt standoff.
    So a business that depends in some way on govt’s policies may always risky.

    1. The company has delivered growth in a cyclical industry. However the risks are highlighted only so that investors uncomfortable with them can avoid the business. So your view is quite valid, sir.

    2. Instead of Buying Coromandel Directly, Is EID Parry better option??. it holds majority stake in Coromandel and after considering holding company discount.. (felt like am getting EID Parry Business for free, hence thought of checking ) or am i missing something here?

    1. Sriram Ramachandran

      Informative and well researched article as always by Aarati.
      If actual DBT materialises in this budget, it will be big boost to the company since subsidy will be paid directly to farmer account and company can fix market price. Also farmers can go for NPK for better yield and soil health. This will be win-win. Moreover govt cannot delay payment to farmers in DBT.

      1. Thanks. I think DBT may be disruptive in short term.as farmers will need to get used to non subsidised selling prices and change their usage. But yes it’s very positive long term

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