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HomeSHARE MARKET₹81 Small-cap Stock Will Double? Brokerage Said - Buy It; New Merger...

₹81 Small-cap Stock Will Double? Brokerage Said – Buy It; New Merger News

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Securities to Purchase: The brokerage company has advised to purchase Paradeep Phosphates Ltd. (NSE: PARADEEP), a small-cap company in the fertilizer industry. The company’s board has approved the merger with Mangalore Chemical and Fertilizer. 

The brokerage house believes that with this merger the company will become the country’s leading private-sector fertilizer company.

They has given buy advice on the stock. Paradeep Phosphates’ stocks declined by 0.46 percent in the last trading on February 9.

Paradeep Phosphates Target Price

Stock Broking has given buying advice on Paradeep Phosphate. Additionally, the price of the share has been set at Rs 120. On February 9, the share price closed at Rs 81.82. 

In this way, the stock can get more than a 46 percent return from the current price. The stock has jumped nearly 41 percent in the last year. 

This share is in S&P BSE SmallCap. The market value of the company on BSE was the sum of Rs 6,666.20 crore.

Mangalore Chemical has a strong market in South India, while Paradeep Phosphate has a strong market in North, Central, and East India. After the approval of the merger from the board, Mangalore Chemical will be merged with Paradip Phosphate. 

Let us tell you that both companies are part of Adventz Group. 3.92 crore shares of promoter Zuari Agro (Mangalore Chemical) will be transferred. 

These shares will be transferred to the promoter Zuari Maroc Phosphate (Paradip Phosphate). Under this, the shareholders of Mangalore Chemical will get 187 shares of Paradeep Phosphate for every 100 shares held.

Paradeep Phosphates Price History

The stock of Paradeep Phosphates has seen a spectacular rise in the last year. The annual return of the stock has been greater than 40 percent.

The return in 6 months has been more than 25 percent. In the past month, the share of this company has been up by 4 percent. The 52-week high of the stock is 85.90 as well as the 52-week low price of 48.35.

Paradeep Phosphates: What Is The Brokerage’s Opinion?

Antique Stock Broking says Paradeep Phosphates has delivered strong Q3FY24 results, beating estimates on all fronts. On an annual basis, there was a decrease of 41%/24/ 40 percent in the Revenue/EBITDA/PAT ratio.

The company has given sustainable EBITDA/MT guidance of Rs 5000/MT. After the merger with Mangalore Chemical, Paradeep Phosphates (PPL) EBITDA is expected to increase by 27 percent to Rs 1500 crore in FY26.

The brokerage says further consolidation of the fertilizer business into a single company will help gain pan-India market share, synergy, and strong brand recall. 

However, considering the impact of subsidy cuts despite high RM prices and stable MRP, we cut FY24 EBITDA estimates by 15% and maintained FY25/26 estimates.

About Paradeep Phosphates Ltd 

Paradeep Phosphates Limited (PPL) is among India’s biggest private-sector phosphatic companies that produce various phosphate grades.

PPL is a major provider of fertilizers for the state of Maharashtra, Karnataka, Odisha, Bengal, Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Telangana, Chattisgarh as well as Madhya Pradesh.

The company can also be a key distributor of various industrial items like Phospho Zypmite, Gypsum Hydrofluorosilicic Acid as well as Sulphuric Acid.

The Company has two manufacturing plants. One is located in Paradeep situated in Odisha as well as another located in Zuarinagar, Goa.

The company’s products are sold under the brands “Jai Kisaan” and “Navratna” with more than four decades of brand recognition. In the year ended March 23 of the year, the company boasted customers of over 8 million farmers in 16 states.

Fundamental Analysis of Paradeep Phosphates Ltd

Market Cap₹ 6,669 Cr.
Current Price₹ 81.8
52-wk High₹ 85.9 
52-wk Low₹ 48.3
Stock P/E75.4
Book Value₹ 42.2
Dividend0.61 %
ROCE11.0 %
ROE11.0 %
Face Value₹ 10.0
P/B Value1.94
OPM4.55 %
EPS₹ 1.08
Debt₹ 3,902 Cr.
Debt to Equity1.14

Paradeep Phosphates Share Price Target 2024 To 2030

Year1st Target2nd Target
2024₹85₹128
2025₹140₹189
2026₹200₹222
2027₹225₹235
2028₹240₹265
2029₹280₹300
2030₹321₹354
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Paradeep Phosphates Ltd Shareholding Pattern

Promoters Holding
Dec 202256.10%
Mar 202356.10%
June 202356.10%
Sept 202356.08%
Dec 202356.08%
FII Holding
Dec 20224.74%
Mar 20235.11%
June 20235.25%
Sept 20235.57%
Dec 20235.08%
DII Holding
Dec 202220.73%
Mar 202321.77%
June 202322.48%
Sept 202323.56%
Dec 202322.02%
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Public Holding
Dec 202218.43%
Mar 202317.01%
June 202316.15%
Sept 202314.78%
Dec 202316.81%

Paradeep Phosphates Ltd Share: Last 5 Years’ Financial Condition

To better understand how the market is performing, let’s look at the outlook of this share in the previous years. 

However, investors should be aware of the risks and the market conditions before making any investment decision.

Last 5 Years’ Sales:

2019₹ 4,358 Cr
2020₹ 4,193 Cr
2021₹ 5,165 Cr
2022₹ 7,859 Cr
2023₹ 12,976 Cr

Last 5 Years’ Net Profit:

2019₹ 159 Cr
2020₹ 194 Cr
2021₹ 223 Cr
2022₹ 398 Cr
2023₹ 88 Cr
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Last 5 Years’ Debt-To-Equity Ratio:

20162.42
2020
2021
20221.33
20231.32

Last 10 Years’ Profit Growth:

10 Years:%
5 Years:16%
3 Years:17%
Current Year:-73%

Last 10 years’ Return on Equity (ROE):

10 Years:%
5 Years:14%
3 Years:14%
Last Year:11%

Sales Growth Over 10 Years:

10 Years:%
5 Years:29%
3 Years:47%
Current Year:12%

Conclusion

This article is a complete guide about Paradeep Phosphates Ltd Share. This information and forecasts are based on our research, company fundamentals, history, experiences, and technical analyses. 

Also, We have discussed the share’s prospects and growth potential in detail.

This information will help you in your further investment. 

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Disclaimer: Dear readers, we’d like to inform you that we are not authorized by SEBI (Securities and Exchange Board of India). The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. Also, the share price predictions are completely for reference purposes. The price predictions will only be valid when there are positive signs on the market. Any uncertainty about the company’s future or the current state of the market will not be considered in this study. We are not responsible for any financial loss you might incur through the information on this site. We provide timely updates about the stock market and financial products to help you make better investment choices. Do your research before any investment.

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