Small Fertilizers
Market Cap
₹7,142 ₹7,142 Cr.
P/E
46.10
PEG
1.70
PEG = P/E ÷ 5yr Forward EPS CAGR
5yr Forward EPS CAGR Thesis - Base Case

- The thesis is live if Dhule Phase 1 DAP/NPK reaches commercial production on time; that ramp drives the bulk of the projected revenue step-up and any slip shifts the outcome toward the bear path.- The bull path requires earlier commissioning, cheaper captive green ammonia, and South India trading customers converting to own-manufactured product; the bear path is triggered by commissioning delays, deeper subsidy cuts or sustained raw-material price pressure.
- The base path leans on trading revenue being progressively replaced by backward-integrated manufacturing, lifting blended margins even without better per-tonne economics.

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5Y Revenue & EBITDA Estimates
KEY TRIGGERS TO WATCH
  • The thesis is live if Dhule Phase 1 DAP/NPK reaches commercial production on time; that ramp drives the bulk of the projected revenue step-up and any slip shifts the outcome toward the bear path.
  • The bull path requires earlier commissioning, cheaper captive green ammonia, and South India trading customers converting to own-manufactured product; the bear path is triggered by commissioning delays, deeper subsidy cuts or sustained raw-material price pressure.
  • The base path leans on trading revenue being progressively replaced by backward-integrated manufacturing, lifting blended margins even without better per-tonne economics.
Bear : 16.7% CAGR ₹492 Cr
Base: 31.2% CAGR ₹885 Cr
Bull: 35.7% CAGR ₹1,040 Cr
Management Credibility Report
TRACK RECORD
  • Management is credible as an operator of completed assets: capacity builds and near-term operating economics have been delivered, often ahead of the stated target.
  • The same trust does not extend to the FY27-FY28 plan, where revenue guidance shifts between growth rates and absolute turnover and the Dhule ramp-up, product-level margins and peak debt remain unproven.
  • The pattern is strong industrial execution but softer forecast discipline, so completed-project guidance deserves weight while long-range guidance needs a discount.
Met : 5
Progress: n/a
Missed : 0
Risk Probe Report
WORST-CASE SCENARIO
  • Overall risk profile is expansion-led but cash-strained: strong operating momentum coexists with negative operating cash flow, working-capital absorption and material related-party transactions.
  • The most severe/existential risk is Dhule commissioning slipping against a large term-debt build-up, which would start debt service before the new earnings arrive.
  • Subsidy-policy dependence and group-related capital flows are additional fault lines that could compound any delay or demand shock.
High Risk : 1
Medium Risk : 7
Low Risk : 5
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