Synopsis:
Promoter Zuari Maroc Phosphates acquired 97.5 lakh shares of Paradeep Phosphates through a bulk deal worth ₹177.3 crore, increasing stake by 1.2% and signaling confidence.
The company, a leading player in the fertilizer industry, is known for producing and marketing vital phosphatic fertilizers across India. In this article, we look at a key development where its promoter has increased stake through a bulk deal, signaling confidence and strengthening the company’s future outlook.
Paradeep Phosphates Limited’s stock, with a market capitalisation of Rs. 15,819 crores, rose to Rs. 197.85, hitting a high of up to 0.55 percent from its previous closing price of Rs. 192.73. Furthermore, the stock over the past year has given a positive return of 125 percent.
Bulk Deal
Zuari Maroc Phosphates, the promoter of Paradeep Phosphates, acquired 97.5 lakh shares of the company at Rs. 182.06 per share. The purchase represents a 1.2% stake, translating to a transaction value of approximately Rs. 177.3 crore.
Company Capacity
Paradeep Phosphates Limited (PPL) is the second-largest private company in India that makes phosphatic fertilizers. It can produce up to 3 million metric tons each year. PPL has two main units: Paradeep, which makes products like DAP and different NPK fertilizer grades, and Goa, which produces special NPK grades and urea.
PPL is skilled at finding important raw materials and selling its fertilizers. The company reaches more than 9.5 million farmers and works with over 95,000 retailers across 15 states in India. PPL’s popular brand, Jai Kisaan Navratna, is well respected by farmers.
Also read: Cable stock in focus as promoter likely to offload stake worth ₹887 Cr via block deal
Q1 Financial Highlight
The company reported strong numbers in Q1FY26, with revenue at Rs. 3,754 crore, rising 58% YoY from Rs. 2,377 crore in Q1FY25 and 7% QoQ from Rs. 3,494 crore in Q4FY25. The sales performance remains supported by a 3-year CAGR of 21%.
Profit after tax surged to Rs. 256 crore in Q1FY26, a massive jump compared to Rs. 5 crore in Q1FY25 and up 60% QoQ from Rs. 160 crore in Q4FY25. Over the longer horizon, the company has delivered a 3-year profit CAGR of 10% and ROE CAGR of 10%, reflecting improving profitability trends.
Written By Fazal Ul Vahab C H
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