Check Before You Invest : Indian Phosphate Ltd

Q: Which industry/sub-sector does Indian Phosphate Ltd belong to?

Indian Phosphate Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Fertilizers segment.

Q: Is Indian Phosphate Ltd a good quality company?

Indian Phosphate Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Indian Phosphate Ltd undervalued or overvalued?

Indian Phosphate Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 14.54, Historic Median: 14.97. Price to Book, Current: 0.89, Historic Median: 1.18. Price to Sales, Current: 0.17, Historic Median: 0.19. EV to EBITDA, Current: 7.32, Historic Median: 8.66

Q: Is Indian Phosphate Ltd a good buy now?

Indian Phosphate Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Gross Profit margin of Indian Phosphate Ltd?

Indian Phosphate Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.8% for FY-2025, which is below its 5-year median of 2.9%, indicating decreasing margins.

Q: Operating Profit Margin of Indian Phosphate Ltd?

Indian Phosphate Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.14% for FY-2025, which is below its 5-year median of 3.27% indicating decreasing margins.

Q: Net Profit Margin of Indian Phosphate Ltd?

Indian Phosphate Ltd Net Profit Margin is 1.15% for FY-2025, is below its 5-year median of 1.91%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 1.8, Historic Median: 2.9. Operating Profit Margin (%), Current: 2.14, Historic Median: 3.27. Net Profit Margin (%), Current: 1.15, Historic Median: 1.91

Q: Return on Asset of Indian Phosphate Ltd?

Indian Phosphate Ltd Return on Asset is 4.89%, which is below its 5-year historical median of 8.07%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Indian Phosphate Ltd?

Indian Phosphate Ltd Return on capital employed is 11.76% for FY-2025, which is below its 5-year historical median of 23.2%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q: Return on Equity (ROE) of Indian Phosphate Ltd?

Indian Phosphate Ltd Return on equity is 7.97% for FY-2025, which is below its 5-year historical median of 18.14%, indicating the business is making worse use of its shareholders capital.

Check Before You Invest : Indian Phosphate Ltd

Snapshot

Q.1 Which industry/sub-sector does Indian Phosphate Ltd belong to?

Indian Phosphate Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Fertilizers segment.

Q.2 Is Indian Phosphate Ltd a good quality company?

Indian Phosphate Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Indian Phosphate Ltd undervalued or overvalued?

Indian Phosphate Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	14.54	14.97
Price to Book	0.89	1.18
Price to Sales	0.17	0.19
EV to EBITDA	7.32	8.66

Q.4 Is Indian Phosphate Ltd a good buy now?

Indian Phosphate Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of Indian Phosphate Ltd?

Indian Phosphate Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.8% for FY-2025, which is below its 5-year median of 2.9%, indicating decreasing margins.

Q.2 Operating Profit Margin of Indian Phosphate Ltd?

Indian Phosphate Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.14% for FY-2025, which is below its 5-year median of 3.27% indicating decreasing margins.

Q.3 Net Profit Margin of Indian Phosphate Ltd?

Indian Phosphate Ltd Net Profit Margin is 1.15% for FY-2025, is below its 5-year median of 1.91%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	1.8	2.9
Operating Profit Margin (%)	2.14	3.27
Net Profit Margin (%)	1.15	1.91

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Indian Phosphate Ltd?

Indian Phosphate Ltd Return on Asset is 4.89%, which is below its 5-year historical median of 8.07%, indicating deteriorated asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Indian Phosphate Ltd?

Indian Phosphate Ltd Return on capital employed is 11.76% for FY-2025, which is below its 5-year historical median of 23.2%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.6 Return on Equity (ROE) of Indian Phosphate Ltd?

Indian Phosphate Ltd Return on equity is 7.97% for FY-2025, which is below its 5-year historical median of 18.14%, indicating the business is making worse use of its shareholders capital.

C: How much debt does the business have and is it at a sustainable level?

Q.7 Debt to Equity ratio of Indian Phosphate Ltd?

Indian Phosphate Ltd Debt-to-Equity ratio is 0.12, which is lower the industry average of 0.41, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Indian Phosphate Ltd?

Indian Phosphate Ltd Debt to cash flow from operations is 12.25, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Indian Phosphate Ltd?

Q.1 Promoter shareholding and pledge status of Indian Phosphate Ltd?

Promoters hold 72.99% of the Indian Phosphate Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Indian Phosphate Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Indian Phosphate Ltd vs industry peers?

Indian Phosphate Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 8.22%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-	8.2
Gross Profit Growth (%)	-25	13.5
Operating Profit Growth (%)	-26.1	7
Net Profit Growth (%)	-30.8	14.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	4.26	1.19
ROE (%)	7.97	7.02
ROCE (%)	11.76	9.34
Cash Conversion Cycle (days)	36.71	68

Valuation & price assessment

Q.1 Stock return of Indian Phosphate Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -15.85% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-15.9%

Q.2 Valuation ratios of Indian Phosphate Ltd vs historical?

The current P/E ratio of 14.54 is in line with than its historical median of 14.97, indicating that the stock is trading near its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	14.54	14.97	13.55
Price to Book	0.89	1.18	1.43
Price to Sales	0.17	0.19	0.63
EV to EBITDA	7.32	8.66	7.82

Check more companies

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2. Paradeep Phosphates

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4. GSFC

5. MP Bharat Agro Prod

6. Krishana Phoschem

7. National Fertilizers

8. SPIC

9. Madras Fertilizers

10. Zuari Agro Chemicals

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Check Before You Invest : Indian Phosphate Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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