Indian Potash Limited (IPL) was established in 1955 as a key player in the fertilizer industry in India, ensuring the availability of potash and other fertilizers to Indian farmers at affordable rates. It operates as a leading importer and distributor of fertilizers, specializing in Muriate of Potash (MOP), Di-ammonium Phosphate (DAP), and other agro-chemicals, catering to the Indian agricultural sector by making high-quality fertilizers accessible to rural farmers. Core operations include importing and distributing potash-based fertilizers, manufacturing and marketing organic fertilizers and crop nutrients, and engagement in R&D for sustainable farming practices. Revenue is generated through the sale of fertilizers like MOP, DAP, and NPK to Indian farmers, distribution network across rural India leveraging cooperatives and agricultural societies, and diversified income streams through agricultural research services and related products.
The company is owned and promoted by cooperatives in India, including Indian Farmers Fertilizer Cooperative Limited (IFFCO), Krishak Bharati Cooperative Limited (KRIBHCO), and other state-level cooperative marketing federations. These cooperatives ensure smooth distribution and support across India's vast rural landscape.
Risks associated with the business include dependency on imports (a significant portion of potash is imported, exposing IPL to currency fluctuations and changes in international trade policies), subsidy dependency (IPL heavily depends on government subsidies for fertilizer pricing; any delay or reduction in subsidies can impact profitability), competition (the fertilizer market is highly competitive), and regulatory risks (changes in government policies regarding fertilizer pricing, subsidies, or import/export duties can directly affect the business). Currently, there is no plan for an IPO by the management.
Financial highlights include revenue of ₹16,304 Cr in FY21, ₹18,504 Cr in FY22, ₹33,323 Cr in FY23, and ₹20,946 Cr in FY24. EBITDA was ₹687 Cr, ₹778 Cr, ₹1,082 Cr, and ₹401 Cr for FY21-FY24 respectively. PAT was ₹853 Cr, ₹1,618 Cr, ₹1,874 Cr, and ₹1,258 Cr for the same period. EPS figures were ₹298.36, ₹565.93, ₹655.47, and ₹439.86.
The top shareholders include Indian Farmers Fertiliser Cooperative Limited (14.94%), with the remaining shares held by other cooperatives.
Valuation details include a current unlisted market price (as of 23.01.2025) of ₹3175. Mcap is approximately ₹9080 Cr. The company's revenue of ₹20,946 Cr results in a Mcap/sales ratio of 0.43, which is considered undervalued. The EPS for 2024 is ₹439.86, resulting in a P/E ratio of 7.22, also considered highly undervalued. Based on market relative parameters such as P/E and Mcap/Sales, Indian Potash is a quite undervalued stock.
