Paradeep Phosphates Ltd.
ISIN: INE088F01024 • Market Cap: ₹15,671 Cr
The 5-Pillar Quality Audit for Paradeep Phosphates Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (9.8%), Return on Capital Employed (22.7%), and equity compounding (13.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 1.07 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (20.7%) and 3Y PAT CAGR (52.2%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 14.62 vs PEG of 1.35 and Dividend Yield of 1.0%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 57.9%, backed by 23.3% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 22.7%)
Paradeep Phosphates Ltd. generates exceptional return on capital employed of 22.7%, reflecting pricing power and competitive moat.
Strong Topline Expansion (3Y Sales CAGR: 20.7%)
Revenue has expanded at 20.7% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 52.2%)
Net earnings have compounded at 52.2% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 14.62)
Trading at a P/E multiple of 14.62, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 1.07)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Sectoral & Macro Headwinds (Chemicals)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Chemicals space.
Quantitative Strategy Eligibility
Checking PARADEEP against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 74/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Chemicals Sector Peer Comparison
Compare PARADEEP directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Paradeep Phosphates Ltd. (PARADEEP)Current | 74/100 | ₹15,671 Cr | 14.62 | 22.7% | 1.07 | — |
| Solar Industries India Ltd. (SOLARINDS) | 80/100 | ₹1.79 Lakh Cr | 89.97 | 30.2% | 0.23 | View |
| Pidilite Industries Ltd. (PIDILITIND) | 75/100 | ₹1.68 Lakh Cr | 63.40 | 28.7% | 0.01 | View |
| SRF Ltd. (SRF) | 73/100 | ₹76,329 Cr | 35.31 | 15.2% | 0.36 | View |
| Coromandel International Ltd. (COROMANDEL) | 72/100 | ₹60,148 Cr | 32.83 | 21.6% | 0.07 | View |
| Linde India Ltd. (LINDEINDIA) | 61/100 | ₹57,146 Cr | 104.59 | 12.2% | 0.00 | View |
Frequently Asked Questions: Paradeep Phosphates Ltd.
Q:What is the 5-Pillar Fundamental Score for Paradeep Phosphates Ltd. (PARADEEP)?
Paradeep Phosphates Ltd. has a RupeeTools Fundamental Score of 74/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (70/100), Financial Health (59/100), Growth (92/100), Valuation (80/100), and Ownership Quality (78/100).
Q:Is PARADEEP fundamentally strong for long-term investment?
Yes, PARADEEP exhibits solid fundamental strength with a 74/100 score, driven by a return on equity of 13.5% and a debt-to-equity ratio of 1.07.
Q:Does PARADEEP pass the Coffee Can Investing filter?
Yes! PARADEEP satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does PARADEEP compare against other Chemicals peers?
Within India's Chemicals sector, PARADEEP trades at a P/E of 14.62 and generates an ROCE of 22.7%. Compare its 5-Pillar score of 74/100 against top sector peers like Solar Industries India Ltd. (80/100), Pidilite Industries Ltd. (75/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.