Paradeep Phosphates (PARADEEP IN) – Visit Update – Full Backward Integration Targeted by FY29 – ACCUMULATE
Published on 01 Jun 2026
We got an opportunity to visit PARADEEP’s fertilizer plant at Paradeep, Odisha, and interact with the management team. The visit provided valuable insights into the company’s integrated operations, raw material sourcing strategy, capacity expansion plans, and long-term growth roadmap. The management highlighted that the next phase of growth focus on increasing its phosphatic fertilizer market share to 20%+, adding 1mmtpa granulation capacity at Paradeep, strengthening backward integration through phosphoric acid and corresponding sulfuric acid expansions, enhancing manufacturing efficiencies, and scaling up allied businesses. We have incorporated the impact of the sharp increase in raw material costs, along with the price hike implemented by the company, into our estimates. Accordingly, we forecast revenue/EBITDA/PAT CAGR of ~15%/~9%/~8% over FY26–28E. At CMP, PARADEEP trades at ~10x FY28E EPS. We maintain our 'Accumulate' rating on the stock and value the company at 11x FY28E EPS, arriving at TP of INR133 per share.
