Paradeep Phosph. (PARADEEP)

FairStock Score: 72/100 — STEADY

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Paradeep Phosphates as a Graham-style bargainer with a Buffett lens. At ₹147.85, market cap ₹15,349 Cr, P/E 14.33 and P/B 2.26, I’m paying about two times book, not a giveaway. Book value is ₹65.39, so tangible cushion is limited. But ROE 25.01% and ROCE 13.72% tell me the business earns decent returns on equity, though not exceptional on capital employed. Debt/equity 1.02 is manageable but not conservative; in fertilizers, leverage matters. Growth has been impressive: sales up 63.10%, profit up 20.80%, and five-year revenue CAGR 26.94%. Latest quarter sales ₹5,749 Cr with net profit ₹182 Cr. That is a thin net margin, so cost control and volume matter. Free cash flow ₹789 Cr is a real positive, showing accounting profit is converting into cash. Piotroski F-score 7/9 supports improving fundamentals. PEG 1.39 is not screaming cheap; FairStock Score 72/100 says steady, not extraordinary. Promoter holding 57.70% aligns interests, but dividend yield 0.68% is thin. The 52-week range ₹99.70–₹181.85 shows volatility. Moat? Fertilizers are commodity-like, subsidy-sensitive and raw-material dependent; scale and brand may help but pricing power is limited. I’d want a margin of safety. At 14 times earnings, Mr. Market is not euphoric, but debt and cyclicality cap my enthusiasm. I prefer low-debt, high-ROCE businesses, and here ROCE is 13.72%, not 20%. This is a watchlist candidate, not a fat pitch. I’d monitor debt reduction, ROCE improvement, cash flow consistency and subsidy/raw material trends.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer