Paradeep Phosphates Ltd

 BSE: 543530 NSE: PARADEEP

Cmp : 104,  Stop Loss 86.10
High 103, Low 62 . All Time High 103 , All Low 37.40

Roce – 6.74 , Roe – 3.28 , OPM 9.06

Promoter 56.08% , FII 2.05 , DII 27.09 , Public 14.79%

Target : 33% to 51%
 

Stock weak below : 78

CHART : STOCK GAVE GOOD ALL TIME BO WITH RANGE BO ALSO. THIS WEEK 18.59% UP AS OF NOW.

Paradeep Phosphates Limited, incorporated in 1981, is one of India's leading manufacturers and distributors of phosphatic fertilizers and urea. With robust backward integration, advanced production facilities in Paradeep and Goa and an extensive distribution network, PPL plays a vital role in enriching India's agricultural economy

Company has been maintaining a healthy dividend payout of 18.0%

CO-PARTNER-PROMOTERS:

History ^:- Paradeep Phosphates Limited (PPL) was incorporated in 1981 as a joint venture between the Government of India (GoI) and the Republic of Nauru to set up facilities for manufacturing di-ammonium phosphate (DAP) at Paradeep, Orissa. In 1993, the Republic of Nauru disinvested its equity stake in the GoI and PPL became a public sector enterprise wholly owned by the GoI.
After the IPO in FY23, Zuari Agro Chemicals (ZACL) and OCP Group together hold 56.1% in PPL post IPO

CAPEX ^:-  Captive phosphoric acid addition from 3-5 Lakh and installation of 04th Evaporator was completed in Q1FY24

Captive Power Plant ^:-  The company also has two captive power plants of 16 MW each

Key Products

1. Di-Ammonium Phosphate (DAP): A core product for PPL, DAP is widely used as a fertilizer due to its high phosphorus content, which is essential for crop growth.
2. NPK Complex Fertilizers: PPL produces various grades of NPK fertilizers, combining nitrogen, phosphorus, and potassium, each tailored to the specific nutrient needs of different crops and soil types.
3. Phosphoric Acid and Sulfuric Acid: These are raw materials used for manufacturing fertilizers. PPL also produces these acids for commercial purposes, enhancing its revenue streams.
4. Muriate of Potash (MOP): MOP is another essential fertilizer offered by PPL, although it is primarily imported, as India has limited potash reserves.
5. Other Specialty Fertilizers: The company also produces specialty fertilizers enriched with micronutrients that target specific crop needs, supporting improved productivity and soil health.
6.  

Operational Strengths

• Integrated Production Facility: PPL’s manufacturing facility in Paradeep has its own sulfuric acid and phosphoric acid plants, which allows it to maintain efficient production costs and control over quality.
• Port Access: The Paradeep location provides the company with a strategic advantage for importing raw materials and exporting products, significantly reducing logistics costs.
• Backward and Forward Integration: PPL has engaged in backward integration to ensure a steady supply of raw materials (like phosphoric acid) and forward integration through an extensive distribution network across India.

Market Presence and Growth

PPL has a strong market presence in eastern and northern India and is expanding into other regions. In May 2022, Paradeep Phosphates went public, listing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The IPO helped strengthen its financial position, enabling it to invest in expansion and modernization projects.

The company plays a significant role in ensuring food security in India by supplying affordable, high-quality fertilizers to the agricultural sector.

FINANCIAL PERFORMANCE :

FOCUS AREA :-


 

Analyst - Ragesh Shah 

info@smartinvestment.in 

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