Paradeep Phosphates Valuation

Is PARADEEP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of PARADEEP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PARADEEP (₹107.02) is trading below our estimate of fair value (₹149.63)

Significantly Below Fair Value: PARADEEP is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PARADEEP?

Key metric: As PARADEEP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PARADEEP. This is calculated by dividing PARADEEP's market cap by their current earnings.
What is PARADEEP's PE Ratio?
PE Ratio	24x
Earnings	₹3.63b
Market Cap	₹85.74b

PARADEEP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	10.5x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

How does PARADEEP's PE Ratio compare to its peers?

The above table shows the PE ratio for PARADEEP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	27x
RCF Rashtriya Chemicals and Fertilizers	42.3x	n/a	₹84.2b
GNFC Gujarat Narmada Valley Fertilizers & Chemicals	18.1x	n/a	₹82.4b
500690 Gujarat State Fertilizers & Chemicals	14.4x	n/a	₹77.2b
SHARDACROP Sharda Cropchem	33.3x	29.9%	₹73.7b
PARADEEP Paradeep Phosphates	24x	27.4%	₹85.7b

Price-To-Earnings vs Peers: PARADEEP is good value based on its Price-To-Earnings Ratio (24x) compared to the peer average (27x).

Price to Earnings Ratio vs Industry

How does PARADEEP's PE Ratio compare vs other companies in the IN Chemicals Industry?

6 Companies	Price / Earnings	Estimated Growth	Market Cap
ZUARI Zuari Agro Chemicals	4.9x	n/a	US$105.82m
NAGAFERT Nagarjuna Fertilizers and Chemicals	0.3x	n/a	US$66.72m
UNIVPHOTO Universus Photo Imagings	5x	n/a	US$48.63m
526773 Pressure Sensitive Systems (India)	0.6x	n/a	US$7.19m

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: PARADEEP is good value based on its Price-To-Earnings Ratio (24x) compared to the Indian Chemicals industry average (31.4x).

Price to Earnings Ratio vs Fair Ratio

What is PARADEEP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PARADEEP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24x
Fair PE Ratio	37.4x

Price-To-Earnings vs Fair Ratio: PARADEEP is good value based on its Price-To-Earnings Ratio (24x) compared to the estimated Fair Price-To-Earnings Ratio (37.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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