Coromandel International plunged 7.2% to end at ₹2,325 on July 1, 2025—driven primarily by reports that China has halted export inspections on specialty fertilisers bound for India, heightening fears of an imminent supply squeeze during the critical Kharif sowing season. There is no evidence of a broad sector-wide selloff on this date; the decline appears to be a company-specific reaction to supply chain concerns, not part of a general market decline.
Quick Statistics
| Date | Closing Price (₹) | Change (%) | Volume |
|---|---|---|---|
| July 1, 2025 | 2,325.60 | –7.17% | ~1.8× 30‑day average |
1. China’s Export-Inspection Freeze Sparks Supply Fears
A June 26 report noted that Chinese authorities have temporarily suspended mandatory inspections for specialty fertiliser shipments bound for India. Given China supplies approximately 80% of India’s high-efficiency fertiliser imports, the halt threatens timely delivery during peak agricultural demand, triggering a sharp drop in Coromandel’s stock price when details surfaced.
2. No Sector-Wide Meltdown Detected
Unlike June 26—when a broader dip occurred across fertiliser names such as FACT, Mangalore Chemicals, and Paradeep Phosphates—July 1’s decline was largely isolated to Coromandel. Moneycontrol data confirms fertiliser benchmarks were stable, reinforcing that the plunge was firm-specific rather than sector-wide
3. High Volume Indicates Institutional Unwinding
Trading volumes surged roughly 80% above the 30‑day daily average, suggesting programmatic stop-loss triggers or institutional exits. There was no unusual promoter activity, reinforcing that the drop was sentiment-driven rather than strategic.
4. Fundamentals Remain Unchanged
Coromandel remains fundamentally strong:
- Q4 FY25 PAT surged ~73% YoY on strong demand.
- Recently added to the MSCI India Index
- Aggressive capex in domestic manufacturing and phosphate mining
- Expanding rural retail network
There are no signs of internal distress or strategic missteps.
Breakdown of the 7.17% Drop
Viraj’s Perspective
Here is my own data-driven Perspective”
“The drop is a supply-chain triggered overreaction, not reflective of any business deterioration in Coromandel. Investors should monitor updates on export inspections or government interventions.”
🔮 Investment Outlook
| Action | Rationale |
|---|---|
| Hold / Accumulate | Strong fundamentals; supply event is likely temporary |
| Track Developments | Especially in China export policy or Indian import routes |
| Review Q1 Earnings | Key to gauge whether volumes or margins were impacted |
Conclusion
Coromandel’s steep fall is driven by fears of disrupted inputs from China, and not due to weakness in the company or a broader sector downturn. For informed investors, this may present a short-term opportunity—provided the export situation resolves—but continued vigilance is advised.