homemarket Newsstocks NewsThis analyst expects Paradeep Phosphates to cross Rs 100 per share in the next 12 months
This analyst expects Paradeep Phosphates to cross Rs 100 per share in the next 12 months
Antique's price target of Rs 100 values Paradeep Phosphates at 12 times financial year 2025 estimates Earnings per Share (EPS), which is a 20 percent discount to the largest player - Coromandel International.
Antique Stock Broking has initiated coverage on Paradeep Phosphates Ltd. (PPL) with a Buy recommendation and price target of Rs 100 per share, which implies a potential upside of 71 percent.
The brokerage believes that post the expansion of its fertiliser capacity from 1.2 MMT to 1.8 MMT and the acquisition of Zuari Agro's Goa plant, the company will not only gain market share but also turn into a more profitable platform aided by better product mix, deeper backward integration and better capacity utilisation.
Paradeep Phosphates is Antique's preferred pick in the phosphatic fertiliser space as it has one of the strongest business models supported by volume growth visibility. It also expects the Goa plant capacity utilisation to increase to over 90 percent by financial year 2025.
The brokerage is anticipating Paradeep Phosphates to report volumes, EBITDA and net profit Compounded Annual Growth Rate (CAGR) of 22 percent, 30 percent and 49 percent over financial year 2023-2025. It also expects the company net debt-to-equity to fall to 0.6 times in financial year 2025 from 1.3 times in financial year 2023.
Antique's price target of Rs 100 values the stock at 12 times financial year 2025 estimates Earnings per Share (EPS), which is a 20 percent discount to the largest player - Coromandel International.
Paradeep Phosphates manufactures, trades, distributes and sells a variety of complex fertilisers like di-ammonium phosphate (DAP) and NPK fertilisers. The fertiliser products are marketed under brands like 'Jai Kisaan Navratna' and 'Navratna'.
Shares of Paradeep Phosphates are trading 6.8 percent higher at Rs 62.40. This is the best single-day gain for the stock in two weeks. All three analysts who track the stock now have a buy recommendation on it.
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