This report is the updated version of the report published on December 16, 2025, 09:26 AM GMT.

Croda International PLC (LSE: CRDA)

Croda International PLC (LSE: CRDA) is an FTSE 100 listed company specializing in creating high performance ingredients and technologies that improve people's lives. Its sales, marketing and research activities are organized into three global market sectors: consumer care, life sciences and industrial specialties. This Report covers the Key Recommendation Rationale, Conclusion, and Recommendation on the stock.

Key Recommendation Rationale – Buy at GBX 2,728.00

• Broad-Based Sales Growth Driven by High-Quality Segments: Croda delivered solid third-quarter sales growth, with Group revenues rising 6.5% at constant currency despite a challenging demand environment. Performance was led by higher-value, innovation-rich areas including Beauty Actives, Fragrances & Flavours and Crop Protection, all of which recorded strong growth. This demonstrates the strength of Croda’s portfolio positioning in resilient end markets with favourable long-term demand drivers.
• Tangible Progress on Efficiency and Margin Recovery - The Group continues to execute its transformation plan effectively, with actions in place to deliver £25m of cost savings in 2025 and confidence in achieving £100m of annualised savings by the end of 2027. Improved utilisation of shared manufacturing sites and portfolio optimisation are already supporting volume growth and operational efficiency, underpinning management’s confidence in future margin recovery.
• Maintained Full-Year Guidance Despite Market Headwinds - Croda has reaffirmed its full-year 2025 adjusted profit before tax guidance of £265m–£295m at constant currency. This reflects good year-to-date trading, disciplined cost control and resilience in core businesses, even as customers remain cautious and currency remains a headwind. The unchanged outlook highlights the Group’s ability to navigate near-term volatility while continuing to invest for long-term value creation..

Valuation Methodology: Price/ Earnings Approach

Share Price Chart  

Conclusion

For conducting the valuation, the following peers have been considered - Johnson Matthey PLC (LSE: JMAT), Victrex PLC (LSE: VCT) and others.

Given its current trading levels, Tangible Progress on Efficiency and Margin Recovery, Broad-Based Sales Growth Driven by High-Quality Segments, relative valuation, and associated risks a ‘Buy’ recommendation is given on the stock at the Current Market Price of GBX 2,728.00 as of 16 December 2025 at 08:03 AM GMT.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 16 December 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and/or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.