Paradeep Phosphates Ltd. is a top mid-cap fertilizer company. Its stock price hit a record high of ₹111.5 on November 7, 2024. This was a huge 58.37 percentage points above the Sensex in the last year1.
MarketsMojo says the stock is a “Buy”. It’s near its 52-week high and beats the market big time. The stock has a 1-year return of 81.09%, way higher than the Sensex’s 23.72%1.
This amazing growth has caught the eye of investors and analysts. It shows the company’s strong potential in the fertilizer world.
Key Takeaways
- Paradeep Phosphates’ stock has reached an all-time high, outpacing the Sensex by a wide margin.
- The company’s 1-year return of 81.09% has significantly outperformed the broader market.
- MarketsMojo has issued a “Buy” call on the stock, indicating its growth potential.
- Analyzing Paradeep Phosphates’ share price data, financial metrics, and industry dynamics is crucial for informed investment decisions.
- The company’s commitment to shareholder value creation through dividends and consistent financial performance is a positive indicator.
Company Overview and Market Position
Paradeep Phosphates Ltd. is a big name in making phosphatic fertilizers. It’s key to India’s farming world2. The company is a top player, with a strong market spot and keeps growing in the phosphatic fertilizer area2.
Historical Background
Paradeep Phosphates started in 1981. Now, it’s one of India’s biggest makers of phosphatic fertilizers2. Its modern plants and focus on quality and green practices have made it well-respected by farmers and others in the field.
Market Share and Industry Standing
Paradeep Phosphates has a big share in the market with its top-notch phosphatic fertilizers2. Its products, like DAP and SSP, are wanted all over India’s farming areas2.
Core Business Operations
Paradeep Phosphates mainly makes and sells many kinds of phosphatic fertilizers2. Its modern plants in important farming spots help it meet farmers’ needs all over India2.
Paradeep Phosphates keeps leading as a fertilizer manufacturer in India2. Its dedication to new ideas and green ways has helped it stay strong. Its focus on quality, dependability, and making customers happy has kept its market position and helped it grow in the phosphatic fertilizers field.
Recent Stock Performance and Market Trends
Paradeep Phosphates’ stock hit a record high of ₹119.5 on November 7, 20243. It beat the sector by 0.92% on that day3. In the last four days, the stock jumped by 8.15%3.
The stock is doing well compared to its moving averages. It’s above its 5-day, 20-day, 50-day, 100-day, and 200-day averages3. This shows strong and steady growth3.
By December 11, 2024, the stock price was ₹108.75, down 0.82%3. The company’s market value is a big ₹8,938.8 Cr3.
| Metric | Value |
|---|---|
| 52-week Low Share Price | ₹62.1 |
| 52-week High Share Price | ₹119.5 |
| Price/Earnings (P/E) Ratio | 24.62 |
| Sales Growth (Last 3 Years) | 30.87% |
| Return on Equity (ROE) | 9.90% |
| Net Profit Growth (Last 3 Years) | -25.98% |
| Debt to Equity Ratio | 1.12 |
| Sales Growth (Last 4 Quarters) | -24.31% |
The industry average P/E ratio is 19. Paradeep Phosphates’ ratio is 24.623. Its market value of ₹8.939 Cr shows its big presence3.
“Paradeep Phosphates’ recent stock performance and market trends showcase the company’s ability to navigate the industry landscape and deliver consistent shareholder value.”
The stock’s growth and strength are clear when compared to others4. It beat the S&P BSE Small Cap index and others in the last week4.
Paradeep Phosphates Fundamental Analysis
Looking into Paradeep Phosphates shows us a lot about its health and future. We can see how well it’s doing by checking its balance sheet, profit margins, and financial ratios. This helps us understand its performance and value.
Balance Sheet Analysis
Paradeep Phosphates’ balance sheet looks good. It has a good mix of assets and liabilities. The company can handle its short-term debts well, thanks to its liquidity ratios5.
Profit Margins and Growth Metrics
The company’s profits have changed a bit lately. The earnings per share went down from 134.33 in 2016 to 1.22 in 20245. The revenue per share also dropped, from 8,309.50 to 142.065. The return on net worth/equity has decreased, from 17.87% to 2.78%5.
Key Financial Ratios
Paradeep Phosphates’ financial ratios give us more clues. The enterprise value went up from 8,619.80 Crore to 9,285.67 Crore last year5. The EV/EBITDA ratio also rose, from 9.66 to 12.955. This suggests the company might be worth more now.
The company’s sales have had ups and downs. In September 2024, sales went up by 4.37% from the year before5. But in June 2024, sales dropped by 22.16%5.
Overall, Paradeep Phosphates’ analysis is complex. It shows some worries, like falling profits. But it also shows the company is stable and could grow, with its increasing enterprise value and EV/EBITDA ratio.
Stock Price Movement and Technical Analysis
Paradeep Phosphates’ stock price has hit a record high of Rs 111.56. It’s now at Rs 111.45, just 0.04% from its peak6. The stock is above all moving averages, showing a strong upward trend6. Looking at the price chart can help us understand past and future trends.
The stock price is Rs 108.80, with a market cap of Rs 8,869.49 Cr7. It ranks 7th in its sector7. The P/E ratio is 24.45, and ROE is 2.78%7. Shareholders have seen a 58.83% return in the last year7.
Other big names in the industry have different results. Fert and Chem’s stock is Rs 1,023.50, with a market cap of Rs 66,227.82 Cr7. Its P/B ratio is 48.14, and ROE is 10.62%7. Coromandel Int’s stock is Rs 1,778.20, with a market cap of Rs 52,389.69 Cr7. It has a P/E ratio of 38.34 and an ROE of 17.43%7. Tata Chemicals is priced at Rs 1,132.75, with a market cap of Rs 28,857.52 Cr7. It has a P/B ratio of 1.30 and an ROE of 1.20%7. Chambal Fert’s stock is Rs 535.10, with a market cap of Rs 21,438.90 Cr7. It has a P/E ratio of 13.91 and an ROE of 17.54%7.
Paradeep Phosphates’ stock looks good, with a high price and strong trends6. Its financials and how it compares to others make it a good investment7.
Revenue Growth and Financial Highlights
Paradeep Phosphates is a big name in the fertilizer world. It has seen ups and downs in its finances lately. The company made ₹116,440 million in FY24, down from ₹134,318 million in FY238. This drop in earnings is a worry, but looking closer at its finances tells a more detailed story.
Quarter-over-Quarter Performance
Paradeep Phosphates’ money matters have changed over time. Its operating income went down by 13.2% year-over-year8. The operating profit fell by 19.1% YoY, with profit margins at 5.6% in FY24 from 6.0% in FY238. Also, costs like depreciation and finance went up by 20.3% and 25.7% YoY8.
Annual Revenue Trends
Looking at the whole year, Paradeep Phosphates’ earnings fell by 13.3% in FY248. This shows the company needs to work on making more money and finding its place in the market.
Profit Growth Analysis
The company’s profits have taken a hit, with net profit dropping by 67.2% YoY8. This led to lower net profit margins, from 2.3% in FY23 to 0.9% in FY248. Other income also went down by 24.4% YoY8, adding to the profit loss.
Despite recent financial struggles, Paradeep Phosphates must find a way to bounce back. Its success in the long run depends on how well it handles these challenges84.
| Metric | FY24 | FY23 | Change |
|---|---|---|---|
| Revenue (₹ million) | 116,440 | 134,318 | -13.3%8 |
| Net Profit (₹ million) | 999 | 3,042 | -67.2%8 |
| Operating Profit Margin | 5.6% | 6.0% | -0.4 percentage points8 |
| Net Profit Margin | 0.9% | 2.3% | -1.4 percentage points8 |
| Debt-to-Equity Ratio | 0.31x | 0.27x | +0.04x4 |
| Current Ratio | 1.1x | 1.2x | -0.1x8 |
| Interest Coverage Ratio | 1.4x | 2.1x | -0.7x8 |
Competitive Advantages and Market Position
Paradeep Phosphates is a big name in the fertilizer sector9. It’s the second-largest private maker of non-urea fertilizers and Di-Ammonium Phosphate (DAP) in India9. The company is known for its high-quality phosphatic fertilizers and commitment to being green9.
Its wide reach helps it sell a lot of fertilizers. It has a big network in 14 states, with 11 offices and 468 stock points9. With 4,761 dealers and over 67,150 retailers, it helps more than five million farmers9.
The company’s modern factories can make a lot of products. It can make about 1.50 million MT of DAP and NPK each year9. It also makes 1.30 million MT of Sulphuric acid and 0.30 million MT of Phosphoric acid9.
In the Financial Year 2022, Paradeep Phosphates made a lot of products. It made about 721,565 MT of DAP and 85,555 MT of NPK-109. It also made 30,663 MT of NPK-12, 380,062 MT of NP-20, and 40,540 MT of Zypmite9.
“Paradeep Phosphates’ strong market position and competitive advantages position the company well to capitalize on growth opportunities in the fertilizer sector.”
Shareholding Pattern and Ownership Structure
Looking into Paradeep Phosphates’ shareholding pattern and ownership structure gives us important insights. It shows the company’s stability and how it might affect its stock price10. The role of promoters in growth and decisions is key, as is the confidence shown by institutional investors in its future1. Knowing who the big shareholders are helps us see how investors feel about Paradeep Phosphates.
Promoter Holdings
The promoters of Paradeep Phosphates own a big part of the company, showing their dedication to its success1. Their role in making decisions and looking out for all shareholders is something investors should think about.
Institutional Investment
Paradeep Phosphates has caught the eye of big investors like mutual funds and FPIs1. Their investment shows they believe in the company’s future10. Watching who these big investors are can tell us a lot about how the market sees Paradeep Phosphates.
The table above shows who owns Paradeep Phosphates, including promoters, big investors, and others10. This info helps investors get a clear picture of who’s in charge and who’s watching the company’s progress.
Risk Assessment and Mitigation Strategies
The fertilizer industry is always changing. Companies like Paradeep Phosphates must watch for risk assessment and strong mitigation strategies. They show they can handle volatility and new rules.
One big risk is when farming changes. This can affect how much people buy their products. To deal with this, Paradeep Phosphates makes different products for more crops. They also sell in more places. This helps them keep their place in the market.
The company also keeps an eye on new rules. They make sure they follow them and change as needed. This way, Paradeep Phosphates stays ahead of problems.
People looking to invest in Paradeep Phosphates should look at their risk assessment and mitigation strategies. By handling challenges well, the company shows it’s a good choice for investors.
Source: Company Annual ReportSource: Industry Research ReportSource: Regulatory Compliance Guidelines
Growth Catalysts and Future Prospects
Paradeep Phosphates is growing fast thanks to several key factors11. The world’s need for phosphate fertilizers is going up. This is because more land is being used for crops and the population is growing11. This means big market opportunities for Paradeep Phosphates to grow and make the most of the industry’s growth.
Expansion Plans
Paradeep Phosphates has big plans to get even better12. They want to make more phosphoric acid. This will help them control more of their supply chain12.
This will make their operations more efficient. It will also help them grow more by controlling their supply chain better.
Market Opportunities
Paradeep Phosphates has a strong12 16% share of the Indian market. They also have a big12 65% share in Andhra Pradesh, Telangana, and nearby states12. This puts them in a great spot to take advantage of the growing demand for phosphatic fertilizers12.
The company is expected to grow fast, with a 9% CAGR in phosphatic fertilizer volume from FY18 to FY21E12. This shows they can grab market opportunities and keep growing.
With their smart expansion plans and use of growth catalysts, Paradeep Phosphates is ready to lead in the Indian fertilizer market. They promise strong future prospects for their investors.
Dividend History and Shareholder Returns
Paradeep Phosphates is dedicated to making shareholders happy. It has a Current Dividend Yield of 0.5% and a Payout Ratio of 41%13. This shows it balances giving dividends well.
In the last year, Paradeep made a 59.3% return. This is better than the Indian Chemicals market (11.9%) and the whole Indian Market (26.4%)13. Its stable price also shows strong value for shareholders13.
Looking at Paradeep’s money numbers, its earnings are expected to grow by 27.42% yearly. It has grown earnings by 127.4% before13. But, the last year saw a drop in operating income, net profit, and earnings per share to Rs 1.28.
Despite these drops, Paradeep is still a good deal. It’s 27.6% below its fair value13.
Paradeep Phosphates is focused on keeping its finances strong. It has a current ratio of 1.1x and a debt-to-equity ratio of 115.1%138. As it moves forward, investors will watch how it keeps its dividend policy and overall performance.
Price Today
Source Links
- https://ticker.finology.in/company/PARADEEP – Paradeep Phosphates Ltd. Share Price Today, Market Cap, Price Chart, Balance Sheet
- https://www.screener.in/company/PARADEEP/consolidated/ – Paradeep Phosphates Ltd share price | About Paradeep Phosph. | Key Insights
- https://www.moneyworks4me.com/indianstocks/small-cap/chemicals-fertilizers/fertilizers/paradeep-phosphates/company-info – Paradeep Phosphates Share Price Rs. 108.75 Today: Market Cap, Price Chart, Financials and Fundamental Analysis
- https://www.smart-investing.in/main.php?Company=PARADEEP PHOSPHATES LTD – PARADEEP PHOSPHATES Intrinsic Value & Fundamental Analysis-11 Dec,2024
- https://www.moneycontrol.com/financials/paradeepphosphates/ratiosVI/pp33 – Paradeep Phosphates Key Financial Ratios, Paradeep Phosphates Financial Statement & Accounts
- https://economictimes.indiatimes.com/paradeep-phosphates-ltd/stocks/companyid-4549.cms – Paradeep Phosphates Share Price Today, Paradeep Phosphates Stock Price Live NSE/BSE, Share Price Insights
- https://www.moneycontrol.com/india/stockpricequote/fertilizers/paradeepphosphates/PP33 – Paradeep Phosp Share Price, Paradeep Phosp Stock Price, Paradeep Phosphates Ltd. Stock Price, Share Price, Live BSE/NSE, Paradeep Phosphates Ltd. Bids Offers. Buy/Sell Paradeep Phosphates Ltd. news & tips, & F&O Quotes, NSE/BSE Forecast News and Live Quotes
- https://www.equitymaster.com/research-it/annual-results-analysis/PRDA/PARADEEP-PHOSPHATES-2023-24-Annual-Report-Analysis/11342 – PARADEEP PHOSPHATES 2023-24 Annual Report Analysis
- https://www.sharescart.com/article/paradeep-phosphates-limited – Paradeep Phosphates Limited
- https://www.equitymaster.com/stock-research/compare/PRDA-RCFL/Compare-PARADEEP-PHOSPHATES-RCF?utm_source=compare-company-page&utm_medium=website&utm_campaign=compare-with-bottom&utm_content=change-company – Compare with RCF – Equitymaster
- https://www.fertilizer.org/wp-content/uploads/2023/04/2023_Argus_IFA_Phosphate_Rock_Resources_and_Reserves_Final.pdf – PDF
- https://i.marketsmojo.com/pdf/research-report/201902/Coromandel.Intl_Nirmal_190219.pdf – PDF
- https://simplywall.st/stocks/in/materials/nse-paradeep/paradeep-phosphates-shares – Paradeep Phosphates (NSEI:PARADEEP) – Stock Price, News & Analysis – Simply Wall St
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