Paradeep Phosphates Limited IPO (Paradeep Phosphates IPO) Detail

PARADEEP PHOSPHATES : CO. May on 02, 2022 had intimated about the shut down the Ammonia and Urea Plants for annual maintenance w.e.f. May 01, 2022.

Co. informs that, the operations of Ammonia and Urea Plants of the Company at Goa, have resumed operations after the annual maintenance activities.

I AM GONNA HOLD TWO LOT TILL THIS MANSOON QUATER RESULT I HOPE IT GIVE AT LEAST 20% RESULT

India and Egypt are working to swap wheat for fertilizer and other goods to ease potential food shortages.

SW Monsoons advances to NE India , Forecatsed rainfall is 103% of LPA. good prospectus on the card. Add on Dips.

Non promoter Shareholding pattern of PP on day of listing.
Interestingly LIC can be seen which usually doesn't invest in IPO.
Top Shareholders:
SBI Multicap : 5.25%
LIC : 4.28%
NIPPON Smallcap fund : 3.39%
ICICI pru Multiasset fund : 2.35%
HDFC balance advantage : 1.4%
Mirae asset equity saving: 1.4%
Goldman Sachs : 1.71%
Bnp paribas Arbitrage : 1.58%
Retail investors : 14.14%.

@ JETHA LAL JI thanks for showing your kindness by replying in detail. I will keep a watch on the performance GOD BLESS YOU

@Jetha lal ji kindly sir guide about paradeep is it ok to hold for some time for good returns or sell now

@Kanwarjit ji
I am not an expert and I tried to dive down into this group and company. I will tell you my limited view about this company and sector and accordingly you can take decision related to PP as per your choice.

Fertilizer Stocks like Coromandel, Chambal, Deepak fertilizers made good wealth in long term for investors and even Agrochemical companies too. There is growing demand of food in india and world (geopolitical tension made food scarcity too and india has abundant and potential to grow huge). Monsoon is also in favour from last few years and Government have good budgetary support & till will continue till next election at least.

Now coming to this company i.e PP, this company has best in sector margin, raw material price stability (because it sources its RM from morrocan JV), valuation is also attractive (before till new acquisition of Goa unit).
Now I will tell you what worries me about this company and I didn't apply in IPO because of only these reasons:

PP made acquisition of Goa unit (loss making with negative cash flow from last three years from group company i.e ZACL(Zuari Agrochemical Company Ltd). This PP is also JV between ZACL and a morrocan company. Here promoter sold a loss making company to PP and encashed their money. It would be opportunity and challenge for PP to turnaround (make profitable) Goa unit and I would like to wait and watch how Goa unit is managed.
I have some concern related efficiency of promoter group too because Mangalore Chemicals and Fertilizers Ltd (a listed company) is also a subsidiary company of Zuari group and this company hasn't performed well either on financial record or share price record.
In the long term PP might able to make synergy between Paradeep unit and Goa unit but in near term this Goa unit will definitely impact financial of PP because turnaround doesn't happen overnight and we are not very sure whether they will able to do it or not because if the promoter is same then why they can't able to do till now and they made decision to sell it to another group company.
Market is always forward looking and the current valuation (P/E 6) doesn't include loss of Goa unit and Goa unit financial will start combining with PP from next year and I don't know how it will impact.

This was my research which put me away from applying in PP's IPO. There are a lot of If & but in this company and I chose to stay away.
Whether you want to hold or sell then in my opinion if you applied for short term then trade with stoploss (your loss bearing capacity) and if you applied for long term then keep track of its quarter result and further updates company gives.

Goa unit acquisition detail.

Goldman sachs bought at 46+.
Should thay sold today or holding in loss

@Nilaykumar ji
Goldman Sachs bought 1.14 cr share @ Rs 42 in anchor allotment too and added again 41.32 lakhs share @ Rs45.95.(holds around 2% of company now)
These big FII take position for longer time horizon.
We should not follow any Investor or institution blindly. This is general statement and not in relation with Goldman Sachs.

Okay got it. thanks both of you.
Sold 5 lot on listing and holding 3 lot

Please HOLD Rainbow, It has resumed Normalcy now. More IT folks started returning from their Home town/s, we can see spike in OP Volume and pent up demand in Q1.
Now it is trading 500+ , soon it will reach it's IPO price, and TP is 600 by Q1 End

Rainbow Results snippet and concall Outcome :
: AOLSS is 2.83 compared to 3 and it is 4.79 for KIMS ( In-line)
: ARPOB ~45,711 ( in Line)
: IP Volume ( In line)
: Op Volume (Miss ) (But Management clarified , it picked up now as schools started opening and IT folks returning from their Home town)
: Occupancy : 44.59% (Miss) - Management clarified that Omicron disrupted for 6 weeks in Jan & Feb. it picked up now

EBITA down : 400 bps ( compared to (9MFY22) - Miss

Management clarified that due to Omicron and one time lease payment of 20crs reduced bottom line compared to QoQ
please HOLD, do not sell this GEM
it is trading 500+ now

Looks like most investors of PP are exiting in panic. The result is not bad at all. Although I did not apply in this. I have bought few at 41.1, would keep buying in next few sessions, if available further down. People with short horizon should exit (*So people like me can buy😆).

Intraday is open.... Shorting is going on...Plus the stoploss was placed on 44 , 43 and 42...ot is highly unlikely it'll happen again. But seeing the delivery it seems.. operator is accumulating shares ....50% + delivery today also......

Exit at a stop loss of 42. Once it goes below it, it will never rise again in the short term until its results are mind-blowing in future. It works like a PSU. So, do not expect fireworks.

Now hell will wreck PPL. Luckily today I had exited fully with SL @ 45. Sometimes, I feel we should not do too much research on such stocks and also not waste too much time. And always beware of the Operators play in the initial stages of listing.

Huge selling... Luckily kept stop loss at 44.7 ... All got executed.... Expect in one account where forgot to keep sell order... I believe this is good stock but not sure whether it will consolidate for long or come up... All imp positive triggers are not respected... Not sure what more positive expected ???

Monsoons touched Kerala shores, one can expect gap up opening , and can sustain until Q3-FY23. one can accumulate , cheapest stock in Fertilizer sector. more over it is into non-urea ( complex fertilizer business ), it's Jaikisan brand is a high margin business , their backward integration for phosphoric acid is a big boon. if EU, Russia agrees to clear shipments of odesa port (Primarily agri-comodities), it is a big booster for Fertilizer sector , as most of key raw materials can be sourced from there. Government is paying subsidies on time. one should not see this stock, as it can easily touch 52

The reason for lower EBITDA of Goa Unit or for that matter even any commodity company
is as simple as given below ,
1. Higher Variable operating cost ( one need to have their own Captive berth in ports etc)
2. Not able to meet key input raw material / Intermediaries through backward Integration
3. Do not have Long terms purchasing agreements through JVs or some other means based out of Africa/ Middle east / Russia / South America etc suppliers for their RM
4. Inadequate product mix
5. High debt / Interest cost outgo
7. Lack of quality management
Hope You understood now of PPL Business model and its future prospects

IPOHNILEARN sir,
Thank you so much for detailed explanation and we highly appreciate for your efforts.
The points you mentioned make a lot of sense and I do agree with you.
I hope things go as you said and as planned by company and near term future looks bright for this company amid global food crisis, good monsoon and budgetary support to fertilizer sector.

God bless you sir. Thanks again 🙏

Net profit of Paradeep Phosphates rose 364.19% to Rs 35.65 crore in the quarter ended March 2022 as against Rs 7.68 crore during the previous quarter ended March 2021. Sales rose 22.17% to Rs 1898.75 crore in the quarter ended March 2022 as against Rs 1554.20 crore during the previous quarter ended March 2021.
For the full year,net profit rose 78.47% to Rs 398.45 crore in the year ended March 2022 as against Rs 223.26 crore during the previous year ended March 2021. Sales rose 52.16% to Rs 7858.72 crore in the year ended March 2022 as against Rs 5164.73 crore during the previous year ended March 2021

Listing can be around 41.5 to 44...its a good buy below 41 if available for those who didn't applied....
Whoever allotted multiple lots can book partial profit around 45-46 levels if it comes in some days and keep holding remaining. Whoever has 1 lot, better keep holding for longer term, it may give 40-50% returns in 6-12 months. Don't get panic if it goes down in short term like other recently listed IPOs due to market conditions etc. Next two quarter results can come good.

@SHEKHAWAT T - w.r.t Rainbow Children please hold . please see my posting on HOLD recommendations. i was there in their today's Analyst call . Management commentary is good , and they were upbeat. many Analysts took it in a positive way. Omicron disrupted for 6 weeks in Jan - Feb. Normalcy is resumed now. they will post very good set of Q1 nos. it is crossed 500 now.

@shekhawat @have faith: better to hold rainbow for some months, it should bounce back along with markets, results were good and future growth should be there. i am holding few quantities only now from my allotments, sold mostly between 460 and 505....
@k.atar: yes everyone's opinion are always welcome so no one should have problem with someone's opinion/advice, no one is forcing anyone, now you may read comment no. 19 in this thread again.

Anyways, here in paradeep, as i mentioned above, my decision came right to sell at 47, anyone can buy again at lower price who wish so after selling initially.....

it may be out of the nowhere, anyone still holding tega everything is positive in tega it still struggling to go above its base price, and cybertech

MAPMYINDIA? i am holding both tega and mapmyindia as it already 6months, but it seems worst time to exit i was expecting result anyone has speculation for future

People forget much hyped IPO after few months unless it gives exorbitant return.

PP Q4 result out. As expected Raw material cost increased. Q4 is not best quarter for Fertilizer and Agrochemical companies.

@Cautious ProPrio Sir,
Since Fertilizer and Agrochemical chemical businesses are seasonal in nature and usually Q4 is not best quarter for this industry (Q2 & Q3 are best) so we should not Annualise Q4 earning of this sector to calculate valuation.
Your further inputs are most welcome and if I am missing something then you can guide me sir.

Thank you 🙏

@jetha lal..masters can't missed anything ..i remember you teach me lessons on cartrade future prospects

Results snippet:
Seasonal industries need to be compared YoY
Top Line up by 22% ( YOY)
Bottom line up by 364% ( primarily supported by Change in Inventory, need watch this in Q1)
Raw material inflation need to be watched out as it is 117% YoY, looks like global supply chain disruption is the culprit.
Interest outgo is up by 55% ( need to watch down the line), other expenses need to be controlled.
PE works out to 5.28 ( cheap)
Overall Recommendation : HOLD / ADD on dips

Don't sell.

Operator bhai uc bhi le sakta he ..but plz sl laga ke hold karna for upmove.

Me to 48 par hi sell karungi
Bhale 3 months wait karna pade

This was sell on listing day candidate.


Sell, will see 35 levels soon, where bottom fishing can be done.

This matket conditions are very tough..we have to smart enough to books profits in proper timing...buy on lows and sell in rise for 5-7% gain is the mantra for successful trading in this volatile market.

Fertile land, good monsoon and global food crisis present india massive opportunity to feed world. India is among few countries in world which has abundant food for its own people and for the world too.
Seeing global food crisis as opportunity india should rampant food production this year and this will certainly boost Fertilizer and Agrochemical stocks.

Thanks for such information
Keep it up 👍

@krupa ji
Thank you 🙏