Current Rating and Its Significance
MarketsMOJO’s 'Buy' rating for Paradeep Phosphates Ltd indicates a positive outlook on the stock’s potential for value appreciation and overall financial health. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Investors should understand that a 'Buy' rating suggests the stock is expected to outperform the market or its sector peers over the medium to long term, making it a favourable addition to a diversified portfolio.
Quality Assessment
As of 27 December 2025, Paradeep Phosphates Ltd holds a 'good' quality grade. This reflects the company’s robust operational performance and consistent growth trajectory. The firm has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 24.19% and operating profit expanding at an impressive 46.41%. Such growth rates underscore the company’s ability to scale its operations efficiently while maintaining profitability.
Moreover, the company has declared positive results for five consecutive quarters, signalling sustained operational strength. The return on capital employed (ROCE) stands at a notable 14.70% for the half year, indicating effective utilisation of capital to generate earnings. This quality metric reassures investors of the company’s sound business model and management effectiveness.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Valuation Perspective
The valuation grade for Paradeep Phosphates Ltd is currently 'attractive'. As of 27 December 2025, the stock trades at a discount relative to its peers’ historical valuations, with an enterprise value to capital employed ratio of just 1.9. This suggests that the market is pricing the company conservatively compared to its capital base and earnings potential.
Additionally, the company’s price-to-earnings-to-growth (PEG) ratio stands at a low 0.2, signalling that the stock’s price growth is favourable relative to its earnings growth. Over the past year, the stock has delivered a return of 43.47%, significantly outperforming the broader market benchmark BSE500, which returned 5.76% over the same period. This combination of strong returns and attractive valuation metrics makes the stock compelling for value-oriented investors.
Financial Trend and Performance
Financially, Paradeep Phosphates Ltd is rated 'very positive'. The latest quarterly data as of 27 December 2025 shows net sales of ₹6,872.20 crores, reflecting a 64.4% increase compared to the previous four-quarter average. Profit after tax (PAT) for the quarter stands at ₹341.94 crores, up 53.5% versus the prior four-quarter average. These figures highlight the company’s accelerating revenue and profit growth.
Furthermore, the company’s promoters have increased their stake by 1.16% in the previous quarter, now holding 57.2% of the equity. This rising promoter confidence often signals management’s strong belief in the company’s future prospects, which can be reassuring for investors.
Technical Analysis
From a technical standpoint, the stock is currently graded as 'mildly bearish'. On 27 December 2025, the stock price declined marginally by 0.5% for the day, though it has shown positive momentum over the past week (+2.54%) and month (+2.28%). However, the three-month trend shows a decline of 12.63%, indicating some short-term volatility. Despite this, the longer-term year-to-date (YTD) and one-year returns remain robust at +43.67% and +43.47%, respectively.
Investors should consider that technical signals reflect market sentiment and price momentum, which can fluctuate independently of fundamentals. The mildly bearish technical grade suggests some caution in the short term but does not detract from the stock’s strong fundamental outlook.
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Summary for Investors
In summary, Paradeep Phosphates Ltd’s 'Buy' rating reflects a well-rounded positive outlook supported by strong quality metrics, attractive valuation, very positive financial trends, and a technical profile that suggests some short-term caution but no fundamental weakness. The company’s consistent growth in sales and profits, combined with promoter confidence and market-beating returns, make it a compelling stock for investors seeking exposure to the fertiliser sector’s growth potential.
Investors should note that all financial data and returns mentioned are current as of 27 December 2025, ensuring that the analysis is based on the latest available information rather than historical snapshots. This approach provides a clear and actionable perspective on the stock’s present-day investment merits.
About Paradeep Phosphates Ltd
Paradeep Phosphates Ltd is a small-cap company operating in the fertilisers sector. It has demonstrated strong operational execution and financial discipline, which has translated into consistent earnings growth and shareholder value creation. The company’s strategic focus on expanding its market share and improving profitability underpins the positive outlook reflected in the current rating.
Investment Considerations
While the stock’s fundamentals are robust, investors should remain mindful of sector-specific risks such as regulatory changes, commodity price volatility, and macroeconomic factors impacting fertiliser demand. The mildly bearish technical signals also suggest monitoring price movements closely for entry points or risk management.
Overall, the 'Buy' rating by MarketsMOJO signals that Paradeep Phosphates Ltd is well-positioned to deliver value to shareholders, supported by strong fundamentals and an attractive valuation profile as of 27 December 2025.
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