Fertilizer Stock on the Rise: Strong Fundamentals and Big Growth Ahead

Here, we are discussing about a mid-cap fertilizer stock company, who has performed so well that its shareholders gained more than 350% in just three years. 

Market Updates:

Today, Nifty 50 opened at 25,139.35, made its high/low at 25,233.50/ 25,085.50 respectively, and closed with a rise of 159.00 points (0.63%) at 25,219.90 whereas Sensex opened at 82,451.87, made its high/low at 82,786.43/ 82,279.73 respectively, and closed with a rise of 539.83 points (0.66%) at 82,726.64. So, Both Nifty and Sensex have closed Positively today.

Yesterday on 22 July 2025, we have discussed about a robust business strategy and about the company that is from “discount-led growth” to “market-share leadership”. For more detail click on the link below:

https://investmentgrip.com/quick-commerce-success-stock-to-record-high/

About the Fertilizer stock:

Paradeep Phosphates Limited (PPL) is Founded in 1981. With a strong presence in the phosphatic fertilizer segment, it is the leading producers of non-urea fertilizers in India. This fertilizer  company has two manufacturing unit facilities in Odisha and Goa and from which the company   annual produce over 3 million metric tonnes.

The products produced by the company are Di-Ammonium Phosphate (DAP), NPK fertilizers (N‑10, N‑12, N‑20, NP‑19, etc.), agrochemicals such as Zypmite, phospho‑gypsum, sulphuric acid, and ammonia etc. The products are marketed under trusted brands like Navratna and Jai Kisaan.

The fertilizer stock company has strong network spreads in 16 states and are supported by thousands of dealers and retailers, reaching millions of Indian farmers.

The company concentrates its growth strategy on backward integration, efficient port-based logistics, and capacity expansion. Particularly in 2022, the acquisition of the Goa plant enhanced its scale and diversification.

The company has been recognized for quality, sustainability, and also achieved multiple awards for safety, energy efficiency, and CSR and innovation. Paradeep Phosphates is well-positioned to support sustainable farming and meet growing demand for high-quality agri-inputs due to modernization of India’s agriculture sector.

The company’s short-term and long-term performance:

The fertilizer stock company’s short-term and long-term returns are: 1-day return: 5.67%, last 5-days returns: 17.48%, 1-Month returns: 22.25%, 6-months return: 63.48%,1-year return: 139.62%, 3 years returns: 310.56%. 5-years returns and it all time returns are same: 356.38% as the company was listed in NSE and BSE on 27 May 2022.

Financial Context:

In today’s trading session, the fertilizer stock PPL opened at ₹ 190.50, made its high ₹ 205.50 which its 52-week high also. The company’s low is ₹ 187.51. The stock is closed at price of ₹ 200.35.

Financial Base of the company

The market cap of the fertilizer stock is ₹ 16,226 Crore. So, the fertilizer company  stock is of mid-cap size. The stock is trading in a current price ₹200. The 52-week high/low are ₹ 205/78.8 respectively. Hence, the stock is trading near its 52-week high now. The price earnings ratio of the stock is 29.4. The company has its reasonable P/E. The ROE/ROCE are 14.4 /13.9 % respectively. The company’s dividend yield is 0.26%.

Quarterly

The fertilizer stock company performs quarterly very well. The revenue of the company has increased to ₹ 3094 Crore in March 2025 from ₹ 2243 Crore in March 2024. After all expenses, tax, and depreciation etc. the Net profit of the company in March 2025 is ₹ 160 Crore and it was only ₹ 22 Crore in March 2024. Hence, accordingly EPS changed from 0.26 in March 2024 to 1.96 in March-2025.

Yearly

Similarly, if we see the company’s performance yearly- The revenue of the fertilizer stock company has increased to ₹ 13,820 Crore in March 2025 from ₹ 11,575 Crore in March 2024. Here we can see the company’s sale is near to its market cap which is ₹ 16,226 Crore. From this data, we can say the company is under-valued. Hence, we can expect more upward movement from this company. After all expenses, tax, and depreciation etc. the Net profit of the company in March 2025 is ₹ 552 Crore and it was ₹ 100 Crore only in March 2024.

Here, it is also noted that, the company delivered more than five-times of profit in 2025 compared to 2024 which is itself a massive profit. Hence, accordingly EPS changed from 1.23 in March 2024 to 6.67 in March-2025.

Shareholding pattern

According to March 2025 data, Promoters are holding 56.04% of the company’s share. FIIs are holding 13.97% and DIIs are holding 18.18% company’s share and the publics are holding 11.82% of company’s share.

Growth & Expansion

PPL has pursued both organic expansions such as revamping production trains at Paradeep into a run rate above 5,000 MT/day and acquisitions, particularly its Goa facility of USD 280 million in 2022, which has added urea capacity for a diversified product mix. The revamped production infrastructure has raised Granulation output with improved environmental controls and product consistently.

Technical Context & Market Sentiment

The sharp rise in volume on July 21 indicating the bulk buying from institutional or bulk investor. PPL has traded above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages which is showing its bullish momentum.

https://in.investing.com/equities/paradeep-phosphates-historical-data

Conclusion:

PPL is one of the leading players in fertilizer industry in India, combining both strong manufacturing capabilities with a farmer-focused approach. This fertilizer stock company has all the criteria for its long-term growth such as strategic expansion, reliable brand presence, and commitment to sustainability. In future due to demand in agriculture, PPL’s integrated operations and nationwide reach can make it a vital contributor to India’s food security and rural development.