Paradeep Phosphates Ltd - Stock Valuation and Financial Performance

BSE: 543530 | NSE: PARADEEP | Fertilizers | Small Cap

Paradeep Phosphates Share Price

66.39 -1.62 -2.38%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Paradeep Phosphates

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Paradeep Phosphates stock performance -

mw4me loader
P/E Ratio (SA):
61.18
Market Cap:
5,409.1 Cr.
52-wk low:
48.4
52-wk high:
85.9

Is Paradeep Phosphates Ltd an attractive stock to invest in?

1. Is Paradeep Phosphates Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Paradeep Phosphates Ltd is a below average quality company.

2. Is Paradeep Phosphates Ltd undervalued or overvalued?

The key valuation ratios of Paradeep Phosphates Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Paradeep Phosphates Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Paradeep Phosphates Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Paradeep Phosphates:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Paradeep Phosphates Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 2%4.7%6.8%7.8%8.7%7.8%8.7%8.7%12.1%8.7%-
Value Creation
Index
-0.9-0.7-0.5-0.4-0.4-0.4-0.4-0.4-0.1-0.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4,2314,1594,7823,6203,7914,3584,1935,1657,85913,34112,976
Sales YoY Gr.--1.7%15%-24.3%4.7%15%-3.8%23.2%52.2%69.8%-
Adj EPS -1.60.51.82.33.43.44.13.97.74.61.1
YoY Gr.-NA231.5%30.7%44.4%0.3%20.4%-3.9%95.2%-40%-
BVPS (₹) 17.217.419.421.724.325.827.931.838.74343.5
Adj Net
Profit
-89.331.210313519419523522644037489
Cash Flow from Ops. 1,127532-552701804-9201,2701,501-43.9-2,377-
Debt/CF from Ops. 23.7-5.23.72.3-3.41.80.8-67.3-2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 13.6%28.6%47.1%69.8%
Adj EPS NA6.3%4%-40%
BVPS10.7%12.1%15.6%11.2%
Share Price - - - 29.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
-8.339.411.314.713.615.213.121.7132.5
Op. Profit
Mgn %
24.16.112.812.911.312.410.69.46.84.6
Net Profit
Mgn %
-2.10.82.23.75.14.55.64.45.62.80.7
Debt to
Equity
2.222.62.11.32.11.40.71.31.3-
Working Cap
Days
29924123835030030233822218116579
Cash Conv.
Cycle
232167157262252248272166961066

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 47.08%

Sales growth is good in last 4 quarters at 26.24%

Return on Equity has declined versus last 3 years average to 2.50%

Net Profit has been subdued in last 3 years 4.00%

Debt to equity has increased versus last 3 years average to 1.32

Latest Financials - Paradeep Phosphates Ltd.

Standalone Consolidated
TTM EPS (₹) 1.1 1.1
TTM Sales (₹ Cr.) 12,976 12,976
BVPS (₹.) 43.5 43.5
Reserves (₹ Cr.) 2,730 2,730
P/BV 1.53 1.53
PE 61.18 61.20
From the Market
52 Week Low / High (₹) 48.35 / 85.90
All Time Low / High (₹) 37.45 / 85.90
Market Cap (₹ Cr.) 5,409
Equity (₹ Cr.) 814.7
Face Value (₹) 10
Industry PE 20.3

Management X-Ray of Paradeep Phosphates:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Paradeep Phosphates

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales4,2314,1594,7823,6203,7914,3584,1935,1657,85913,341
Operating Expenses 4,2004,0084,5243,1803,3133,9163,7344,6227,18812,540
Manufacturing Costs264227219222233235227226281942
Material Costs3,3513,2313,6832,4932,6023,1242,9443,8716,28110,613
Employee Cost 99108118113119131131139139213
Other Costs 486443504352359427432387487771
Operating Profit 31150257440478442459542671801
Operating Profit Margin (%) 0.7%3.6%5.4%12.1%12.6%10.1%11.0%10.5%8.5%6.0%
Other Income 94874453203936193991
Interest 23516419324215915919211186291
Depreciation 253428586270728390175
Exceptional Items 00-7-61-5400000
Profit Before Tax -1344074131224251230367534426
Tax -8-3-344739236143137122
Profit After Tax -126437787151159194223398304
PAT Margin (%) -3.0%1.0%1.6%2.4%4.0%3.6%4.6%4.3%5.1%2.3%
Adjusted EPS (₹)-2.20.81.31.52.62.83.43.96.93.7
Dividend Payout Ratio (%)0%0%0%0%0%36%0%0%0%13%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 1,0161,0591,1361,2461,3951,4831,6041,8282,2263,503
Share Capital 575575575575575575575575575814
Reserves 4404845616718209071,0291,2531,6502,689
Minority Interest0000000000
Debt2,2171,9002,7532,5111,8023,0542,2181,1752,7874,272
Long Term Debt300398384347288219139113528612
Short Term Debt1,9161,5022,3692,1651,5132,8352,0791,0622,2583,660
Trade Payables1733304665306257088069402,2731,912
Others Liabilities 208291411264302383382481643970
Total Liabilities 3,6143,5814,7664,5514,1245,6285,0114,4247,92910,658

Fixed Assets

Gross Block9811,0261,5791,0181,1541,2381,4961,5891,7103,490
Accumulated Depreciation63566264486146213282362449618
Net Fixed Assets3463649359321,0081,0241,2141,2261,2612,872
CWIP 306467139243215255149220336697
Investments 00000041265544
Inventories5427697157246601,4221,0798992,2932,238
Trade Receivables1,7701,2862,2332,2321,9152,3422,1491,1569023,690
Cash Equivalents 444836153020693598110
Others Assets6066477084042965644117041,9851,048
Total Assets 3,6143,5814,7664,5514,1245,6285,0114,4247,92910,658

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 1,127532-552701804-9201,2701,501-44-2,377
PBT -1344074131224251230367534426
Adjustment -48-779-16225170290219198401
Changes in Working Capital 1189453-740615410-1305778993-691-3066
Tax Paid -35-1-24-29-54-36-29-77-86-137
Cash Flow From Investing Activity -211-124-207-13273-103-143-289-1,099-419
Capex -253-157-240-165-78-126-139-169-620-436
Net Investments 00001425-6-121-4828
Others 423333339181139
Cash Flow From Financing Activity -978-404747-589-8681,018-1,141-1,1241,5892,301
Net Proceeds from Shares 000000000975
Net Proceeds from Borrowing 00000-59-69-30506257
Interest Paid -170-132-150-200-164-165-209-118-40-217
Dividend Paid 00000-69-69000
Others -808-272897-388-7041,312-794-9761,1221,286
Net Cash Flow -624-13-209-5-1587446-495
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)-11.814.357.37.3611.411.0512.5713.0219.6310.6
ROCE (%)2.746.67.669.5710.8410.459.9213.715.0110.77
Asset Turnover Ratio1.041.161.150.780.880.890.811.111.291.45
PAT to CFO Conversion(x)N/A12.37-7.178.065.32-5.796.556.73-0.11-7.82
Working Capital Days
Receivable Days1951331332231991781911154762
Inventory Days535756726787106697361
Payable Days18283942172529202921

Paradeep Phosphates Ltd Stock News

Paradeep Phosphates Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Paradeep Phosphates on 28-Mar-2024 16:01 is ₹66.39.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Paradeep Phosphates stood at ₹5,409.1.
The latest P/E ratio of Paradeep Phosphates as of 28-Mar-2024 16:01 is 61.18.
The latest P/B ratio of Paradeep Phosphates as of 28-Mar-2024 16:01 is 1.53.
The 52-week high of Paradeep Phosphates is ₹85.90 and the 52-week low is ₹48.35.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Paradeep Phosphates is ₹12,976 ( Cr.) .

About Paradeep Phosphates Ltd

The company was initially incorporated as “Paradeep Phosphates Limited” a private limited company, in Odisha, under the Companies Act, 1956, pursuant to a certificate of incorporation dated December 24, 1981, granted by the Registrar of Companies, Odisha at Cuttack. The Company was granted an exemption under Section 620 of the Companies Act, 1956 from using the term ‘private’ as part of its name. The Company was thereafter converted to a public company pursuant to a special resolution passed by our Shareholders on April 29, 2002.

Paradeep Phosphates (PPL) is India's third-largest producer of non-urea fertilizer and the second-largest producer of Di-Ammonium Phosphate (DAP). It is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilizers such as DAP, three grades of Nitrogen-Phosphorus-Potassium (NPK) (namely NPK-10, NPK-12 and NP-20), Zypmite, Phospho-gypsum and Hydroflorosilicic Acid (HFSA). It is also engaged in the trading, distribution and sales of Muriate of Potash (MOP), Ammonia, Speciality Plant Nutrients (SPN) and City compost. Its fertilizers are marketed under some of the key brand names in the market ‘Jai Kisaan – Navratna’ and ‘Navratna’.

The company’s manufacturing facility is located in Paradeep, Odisha and includes a DAP and NPK production facility, a Sulphuric acid production plant and a Phosphoric acid production plant. It utilize Sulphuric and Phosphoric acids for manufacturing DAP and NPK. Its integrated business model has been critical to its success and a differentiating factor from its competitors. The company has established an extensive sales and distribution network, with a strong presence in the eastern part of India. The company’s primary raw materials include Phosphate Rock, Phosphoric acid, Sulphur, Ammonia and MOP. It source its raw materials locally as well as from various other countries such as Morocco, Jordan, Qatar and Saudi Arabia. For several of its raw materials, such as Phosphate Rock, Ammonia and Sulphur, it benefit from long-term supply agreements.

Business area of the company

The company is primarily engaged in manufacturing, distribution, trading and sales of a variety of complex fertilizers such as DAP, several grades of NPK, Zypmite and its by-product, Phospho-gypsum and HFSA. It is also engaged in distribution, trading and sales of MOP, Ammonia, City compost and P2O5-HSS.

Awards and Accreditations

2018

  • Awarded the FAI Award, 2018 for the best production performance of an operating fertiliser unit for complex fertilisers by the Fertiliser Association of India.
  • Awarded the Kalinga Safety Award (Gold) for the performance year 2017 at the Odisha State Safety Conclave, 2018.
  • Awarded the Prime Minister’s Shram Vir Award for the year 2016 by Ministry of Labour and Employment, Government of India.
  • Awarded the 17th Annual Greentech Safety Award, 2018 by Greentech Foundation.

2019

  • Awarded the 18th Annual Greentech Safety Award, 2019 by Greentech Foundation.
  • Awarded the Kalinga Safety Excellence Award (Silver) for the performance year 2018 at the Odisha State Safety Conclave, 2019.
  • Awarded the FAI Environmental Protection Award, 2019 by the Fertiliser Association of India.
  • Awarded the FAI Award, 2019 for the best production performance of an operating phosphoric acid plant by the Fertiliser Association of India.
  • Awarded the IconSWM Excellence Award, 2019 for implementing effective waste management and resource recovery towards environmental protection by the IconSWM.
  • Awarded the Smart Exporter – Gypsum at the Smart Logistics Award, 2019 by Maritime Gateway.
  • Awarded the Brand Leadership Award at the Bhubaneswar Brand Leadership Awards, 2019.

2020

  • Awarded the 19th Annual Greentech Safety Award, 2020 by Greentech Foundation Certified as a Premium Member of the British Safety Council.
  • Awarded for commendable contribution in the field of Corporate Social Responsibility at the Samaya Conclave – 2020.
  • Awarded the HR Best Practices - Union Management Relationship by NHRDN, Odisha chapter.
  • Awarded the Brands of Odisha: Pride of India award at the Sambad Corporate Excellence Awards, 2020 by Eastern Media Limited.

2021

  • Awarded the Best Brand Platinum Award 2021 in the category of Corporate Excellence.
  • Awarded the 3rd prize in the CII-HR-Industrial Relations Management Contest by the Confederation of Indian Industries.
  • Awarded the Best Productivity Excellence Award for overall production achievement in financial year 2020-21 by Orissa State Productivity Council.
  • Awarded the Kalinga Safety Excellence Award (Gold) for the performance year 2019 at the Odisha State Safety Conclave, 2021.
  • Awarded the Kalinga Safety Excellence Award (Platinum) for the performance year 2020 at the Odisha State Safety Conclave, 2021.
  • Awarded ISO/IEC 17025:2017 certification for our facilities at Jagatsinghapur, Odisha in the field of testing by the National Accreditation Board for Testing and Calibration Laboratories.
  • Received certificate for recognition of excellence in energy conservation in the large scale category for Energy Conservation Award (ENCON 2021), Confederation of Indian Industries, Eastern Region.

Major events and milestones:

  • 1981: Incorporation of Company.
  • 1986: Commissioning of di-ammonium phosphate plant (Phase I).
  • 1992: Commissioning of sulphuric acid plant, phosphoric acid plant and captive power plant (Phase II).
  • 2002: Disinvestment by GoI; Acquisition by ZMPPL (a joint venture between ZACL and Maroc Phosphore S.A.) of 74% of the paid-up equity share capital of Company.
  • 2002-2003: Rights issue entirely subscribed by ZMPPL, increasing its stake to 80.45% of the paid-up equity share capital of Company.
  • 2009 : Obtained the ISO 14001:2004 and ISO 9001:2008 certifications.
  • 2010: Obtained the BS OHSAS 18001:2007 certification.
  • 2018: Incorporation of joint venture, Zuari Yoma Agri Solutions Limited.
  • 2019: Obtained the ISO/IEC 27001:2013 certification.
  • 2020: Obtained Product Steward Excellence Certificate under IFA Protect and Sustain Product Stewardship Programme.
  • 2019: Obtained ISO: 9001:2015, ISO: 14001:2015 and ISO: 45001:2018 certifications.
  • 2021: Obtained ISO: 50001:2018 certification.
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