Added to YB: 2026-03-12
Pitch date: 2026-01-09
CRDA.L [bullish]
Croda International Plc
+2.81%
current return
Author Info
No bio for this author
Company Info
Croda International Plc engages in the consumer care, life science, and industrial specialty businesses in Europe, the Middle East, Africa, North America, Asia, and Latin America.
Market Cap
GBP 3.8B
Pitch Price
GBP 27.05
Price Target
5.7K (+20688%)
Dividend
4.08%
EV/EBITDA
11.80
P/E
61.22
EV/Sales
2.55
Sector
Chemicals
Category
turnaround
Croda International Plc - $CRDA.L
CRDA.L: Share price -75% as EBIT margins collapsed 24.5%→17% & ROIC 20%→7%. Market sees structural decline; we see temporary ops disruption in improved biz (pure specialty vs 45% industrial '15, 2x pharma in biologics). 750bps margin drop from: 300bps underutilization (recovery to 100% FY19 by mid-FY26), 250bps overhiring (£100M cost cut, -450 heads), 200bps depreciation (£550M capex online). FY29: £2.2B sales, 25% EBIT, £400M NOPAT. At 20x (vs historical 21x for inferior portfolio)=£8B EV, £57/share vs £27 current. 110% upside, 25% IRR. 5% activist stake. Risks: execution, macro, portfolio complexity
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