Subsidy expectations have boosted Coromandel shares, but rising input costs, weather risks, uncertain policy support and rich valuations warrant caution.
Coromandel’s operations in India have more than 80% dependence on imported ammonia and sulphur. Most of the company’s shipments pass through the Strait of Hormuz, leading to a steep rise in input costs. Rupee depreciation against the US dollar, along with higher freight and insurance costs due to the war, has further increased the landed cost of imports.
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