Paradeep Phosphates (PARADEEP IN) – Initiating Coverage – Nurturing the roots – Accumulate
Published on 23 Mar 2026
We initiate coverage on PPL with ‘Accumulate’ rating and TP of INR120, based on 10x FY28E EPS. PPL is positioning itself to capitalize on the import substitution opportunity in India’s chemicals sector, through backward integration, product mix optimization, and capacity expansion. It is expanding phosphoric and sulfuric acid capacity (+57% and +100%, respectively) and targets to achieve full backward integration by FY29. Further, it is shifting its portfolio toward high-value complex fertilizers, thus reducing reliance on DAP. PPL is expanding its fertilizer capacity to reach ~5.0mmtpa by early FY29. Also, the MCFL merger will strengthen PPL’s presence in South India.
