Stock Price Movement and Market Context
The stock opened the day with a gap up of 5.8%, reaching an intraday high of Rs.144.95, but subsequently reversed course to close at Rs.136, down 0.73% on the day. This closing price represents the lowest level for The Phosphate Company Ltd in the past 52 weeks, a notable drop from its 52-week high of Rs.218.15. Over the last two trading sessions, the stock has declined by 4.83%, underperforming the fertilisers sector by 3.38% today, while the sector itself gained 2.56%.
The broader market environment has been relatively positive. The Sensex opened higher at 84,177.51, gaining 597.11 points (0.71%) and was trading at 84,035.22 at the time of reporting, up 0.54%. The index is currently 2.53% below its 52-week high of 86,159.02 and has recorded a three-week consecutive rise, gaining 3.06% over this period. Mega-cap stocks have been leading the market gains, contributing to the Sensex's positive trajectory.
Technical Indicators and Moving Averages
From a technical perspective, The Phosphate Company Ltd is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning indicates sustained downward momentum in the stock price. The gap up at the open followed by a retreat to the 52-week low suggests volatility and a lack of sustained buying interest at higher levels.
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Financial Performance and Fundamental Metrics
The Phosphate Company Ltd’s financial indicators reflect a challenging environment. The company reported flat results for the quarter ended December 2025, with a Profit After Tax (PAT) of Rs.4.22 crores, representing a decline of 10.2% compared to the previous period. The Debtors Turnover Ratio for the half-year stood at 7.12 times, the lowest in recent periods, signalling slower collection efficiency.
Over the last five years, the company’s operating profit has grown at an annual rate of 9.81%, which is modest relative to sector peers. The average Return on Capital Employed (ROCE) is 7.21%, indicating limited capital efficiency. These factors contribute to the stock’s current rating of Strong Sell, upgraded from Sell on 24 September 2025, with a Mojo Score of 23.0. The Market Cap Grade is 4, reflecting the company’s mid-tier market capitalisation status.
Relative Performance and Valuation
In terms of relative performance, The Phosphate Company Ltd has underperformed the benchmark indices consistently. Over the past year, the stock has delivered a negative return of 10.59%, while the Sensex has gained 7.92%. Furthermore, the stock has underperformed the BSE500 index in each of the last three annual periods, underscoring persistent challenges in generating shareholder value.
Despite these headwinds, the company’s valuation metrics suggest some degree of attractiveness. The ROCE for the most recent period is 6.3%, and the Enterprise Value to Capital Employed ratio stands at a low 0.6, indicating the stock is trading at a discount relative to its capital base. The Price/Earnings to Growth (PEG) ratio is 0.1, reflecting a low valuation relative to profit growth, which has surged by 385% over the past year. Majority ownership remains with promoters, providing a stable shareholder base.
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Sector and Market Dynamics
The fertilisers sector has shown resilience in recent trading sessions, with a 2.56% gain today contrasting with the stock’s decline. This divergence highlights company-specific factors influencing The Phosphate Company Ltd’s share price. The Sensex’s positive momentum, supported by mega-cap stocks, further emphasises the stock’s relative underperformance.
Trading below all major moving averages suggests that the stock remains under pressure technically. The gap up at the open followed by a retreat to the 52-week low indicates volatility and a lack of sustained buying interest. The stock’s current price level of Rs.136 is a significant discount to its 52-week high of Rs.218.15, reflecting a substantial correction over the past year.
Summary of Key Metrics
The Phosphate Company Ltd’s key metrics as of 9 February 2026 are as follows:
- 52-Week Low: Rs.136
- 52-Week High: Rs.218.15
- Day Change: -0.73%
- Consecutive Two-Day Decline: -4.83%
- Mojo Score: 23.0 (Strong Sell)
- ROCE (5-year average): 7.21%
- Operating Profit Growth (5-year CAGR): 9.81%
- PAT (Q4 Dec 2025): Rs.4.22 crores (-10.2%)
- Debtors Turnover Ratio (HY): 7.12 times
- Market Cap Grade: 4
- PEG Ratio: 0.1
The stock’s performance and valuation metrics reflect a complex picture of subdued growth and valuation discounts amid a sector that is advancing. The company’s financial results and technical indicators suggest continued caution in the near term.
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