Paradeep Phosphates
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Paradeep Phosphates is navigating a complex landscape characterized by high raw material costs and geopolitical tensions impacting supply chains. Management has reported a robust 24% EBITDA growth, primarily driven by efficient raw material sourcing and increased profitability in Diammonium Phosphate. The company's strategic initiatives, including significant capacity expansions and backward integration, are expected to enhance long-term growth prospects, despite near-term uncertainties. Vista's financial outlook reflects a strong buy recommendation, supported by anticipated revenue growth and stable margins, with a target price of INR 213.75, indicating an expected upside of approximately 45%. The ongoing geopolitical tensions may pose challenges, particularly in raw material availability and costs, but the company's proactive measures and market leadership position are likely to mitigate these risks. Over the next 12-24 months, key opportunities include the commissioning of new capacity and diversification into non-subsidy businesses, while watchpoints include execution risks related to capacity expansions and the uncertain subsidy environment
Why We Like This Stock
- Strong EBITDA growth driven by efficient raw material sourcing and profitability in key products
- Strategic capacity expansions and backward integration initiatives expected to enhance long-term revenue and margin stability
- Market leadership in NPK fertilizers and proactive management strategies to navigate geopolitical challenges
Things To Watch Out For
- High raw material costs and geopolitical tensions may disrupt supply chains and impact profitability
- Execution risks related to capacity expansion projects could delay anticipated growth benefits
- Uncertain subsidy environment poses risks to revenue stability and margin expansion
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 11,575 | 13,820 | 21,826 | 25,239 | 29,106 |
| Profit Before Tax (Cr.) | 164 | 736 | 1,367 | 1,982 | 2,159 |
| PBT Margin | 1.4% | 5.3% | 626.3% | 7.9% | 7.4% |
| Net Profit (Cr.) | 157 | 563 | 1,047 | 1,518 | 1,653 |
| Earnings Per Share | 1.5 | 5.4 | 10.1 | 14.6 | 15.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Elara Capital | ► Accumulate | 160 | 03-Aug-2026 |
| Prabhudas Liladhar | ► Accumulate | 158 | 03-Aug-2026 |
Company Overview
Show Company Profile
Paradeep Phosphates Limited manufactures, trades, distributes, and sells urea and complex fertilizers in India. It offers di-ammonium phosphate; nitrogen, phosphorus, potassium fertilizers; muriate of potash; triple super phosphate; zypmite; phospho-gypsum; sulphuric acid; hydrofluorosilicic acid; and ammonia; as well as sulphur and zinc. It sells its products through dealers and retailers under the Navratna and Jai Kisaan brand names. The company was incorporated in 1981 and is based in Bengaluru, India. Paradeep Phosphates Limited is a subsidiary of Zuari Maroc Phosphates Private Limited.