Paradeep Phospates Share Price Target

Paradeep Phosphates Share Price Target 2023, 2024, 2025, 2030 | Discover the Paradeep phosphates share price target for 2023 and beyond. Our expert analysis reveals insights into the future of this key player in the phosphates industry.

Paradeep Phosphates Share Price Target 2023, 2024, 2025, 2030

Brief overview of Paradeep Phosphates:

Paradeep Phosphates Limited (PPL) is India’s one of the leading player in phosphatic fertilizers. In 1981 established company PPL is a joint venture between the Indian Government and the Republic of Nauru.

After the divestment of RN’s stake OCP group from Morocco which is one of the world’s largest Phosphatic Company partnered into the business.

In May 2022, Paradeep Phosphate successfully launched its Rs. 1500 crores initial public offering (IPO), The Gol divested its entire available stake which is around 19.55%

Paradeep Phospate (PPL) currently running with total capacity of 3 million MT, out of which 2.60 million MT is Phosphates and the balance 0.40 million MT is Urea is produced. Along with that various industrial products like Gypsum, Zypmite, HFSA (Hydrofluorosilicic Acid), Sulphuric Acid, and Ammonia are also been supplied majorly by Paradeep Phospates.

The company has two manufacturing units one at Paradeep, Odisha with capacity of around 1.8 million MT and another is at Zuarinagar, Goa with capacity of around 1.2 million MT.

Raw materials required here is get sourced globally through long-term contracts and selling of the finished fertilizers is carried under the established brand names of “Jai Kisaan” and “Navratna” to over 8 million farmers across 16 states in India.

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Paradeep Phospates Stock performance:

Paradeep Phospates (PPL’s) stock has shown mixed performance over the years from its listing on share market in 2016. The stock listed on the price of Rs. 43.95 and steadily went down and hit all-time low in June Month at Rs. 37.81 due to negative sentiments in market.

Then recovery started in the paradeep phospates share and it hits all time high of Rs.72 in September 2022. Currently Paradeep Phospates share price 2023 in April month is around at Rs. 53.1

Paradeep Phospates current financial standing:

Revenue – in FY 2022 Company has done the revenue of Rs. 7897.99 Crores with around 52.35% growth.

Expenses – Total expenses was increased to Rs. 7363.61 Crores with around 52.86% growth in FY 2022.

Profit – Profit after tax (PAT) recorded by the company for FY 2022 was around Rs. 398.45 Crores with YoY growth rate of 78.46%  

Operating profit margin was 7.88 % and Net profit margin was 5.07%

EBITDA margin percentage declined to 9.03% for FY 2022, in FY 2021 it was around 10.87%

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Paradeep Phospates fundamentals:

Looking at the overall performance of Paradeep Phospates share is not well amongst the low performers. It seems overvalued when compated to the market average. Its financial growth in recent years has been moderate but profitability signs are good.

Total market capitalization of Paradeep Phospates Ltd is Rs. 4337 crores. Its PE ratio is around 10.88 and it is good when compared to sector PE of 13.41. It has consistently performed well with around 5.37% monthly returns.

Paradeep Phosphates Share Price Target 2023, 2024, 2025, 2030

Year	First target	Second target
Paradeep Phospates share price target 2023	55	65
Paradeep Phospates share price target 2024	78	85
Paradeep Phospates share price target 2025	95	107
Paradeep Phospates share price target 2030	150	170

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Paradeep Phospates Share Price Target 2025

As name itself suggest PPL is an India based company which involved in the production and sale of phosphatic fertilizers, ammonia, and sulfuric acid. The company presently serving in the Indian market and has established strong position so to benefit from the growing demand for fertilizers and agricultural products in the country.

In past few years, PPL has started to invest in expansion of its production capacity and enhancing its facilities, which could enable the company to fulfill the increasing demands of fertilizers in market and so to grow its profitability. The step taken towards diversification of its product portfolio helped the company to enter into a new markets, such as exports to other countries.

In addition, PPL’s strong management team has vision to focus on improving operational efficiency and cost reduction at same time, which could further helps to increase the company’s competitiveness and profitability.

However, we should consider that the PPL operates in a highly competitive and volatile industry, and it is highly regulated by government with strict policies. So the growth of the company is sensitive to a variety of factors, such as global economic conditions, regulatory changes, and market trends. So based on study our estimate for paradeep phosphates share price target 2025 will be Rs.95 to Rs.107

Risks and challenges:

Paradeep Phosphates Limited (PPL) faces several risks and challenges that could affect its business operations, financial performance, and growth prospects.

Volatility in fertilizer prices: As PPL’s product prices fluctuates its revenues are largely dependent on the prices of fertilizers, which are totally dependent on to market volatility and which can be influenced by a variety of factors such as global supply and demand, weather conditions.

Regulatory risks: India’s one of biggest industry is agriculture so the fertilizer industry is heavily regulated by government and any changes in regulations, such as tax policies or import/export restrictions directly impact on PPL’s business operations and profitability.

Environmental risks: PPL’s fertilizer production process involve the use of hazardous chemicals and process wastage is highly dangerous, which can have negative impacts on the environment and local communities. So any fluctuation in process is sensitive to the company as this could attracts legal or reputational risks if it fails to comply with environmental regulations or is involved in incidents or accidents.

Technological risks: PPL’s fertilizer production requires significant capital investments as the production machinery and equipment are costly, and the company could face risks related to equipment and technology failure, obsolescence.

Competition: In India as a biggest agriculture market, competition is very high in fertilizer market. PPL has its competitors from both domestic and international players. The company could face challenges in maintaining its market share or expanding into new markets.

Conclusion:

As per our extensive study about one of leading manufacturer of Phospatic fertilizers in India Paradeep Phospates Limited. We can see the company’s fundamentals are not bad and financial growth in recent years has been moderate but profitability signs are good.

The investment involves risk and rewards equally so we should take care and proper guidance before investment in Paradeep phospates Limited.

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