FACT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.5
| Stock Code | FACT | Market Cap | 56,706 Cr. | Current Price | 877 ₹ | High / Low | 1,112 ₹ |
| Stock P/E | 3,829 | Book Value | 21.2 ₹ | Dividend Yield | 0.02 % | ROCE | 8.65 % |
| ROE | 1.61 % | Face Value | 10.0 ₹ | DMA 50 | 859 ₹ | DMA 200 | 857 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.01 % | PAT Qtr | -67.9 Cr. | PAT Prev Qtr | 20.9 Cr. |
| RSI | 51.7 | MACD | 3.35 | Volume | 3,37,063 | Avg Vol 1Wk | 1,61,857 |
| Low price | 652 ₹ | High price | 1,112 ₹ | PEG Ratio | -60.8 | Debt to equity | 2.79 |
| 52w Index | 49.0 % | Qtr Profit Var | -949 % | EPS | 0.43 ₹ | Industry PE | 15.8 |
📊 Financials: FACT shows weak fundamentals at present. Quarterly PAT slipped into a loss of -67.9 Cr compared to a profit of 20.9 Cr earlier, reflecting severe margin pressure. ROCE at 8.65% and ROE at 1.61% are very low, indicating poor efficiency. EPS is only 0.43 ₹, highlighting limited profitability. Debt-to-equity at 2.79 is high, raising concerns about leverage and financial stability.
💰 Valuation: The stock trades at a P/E of 3,829, massively above the industry average of 15.8, making it extremely overvalued. Book value is 21.2 ₹, with current price at 877 ₹, implying a steep P/B ratio of ~41. PEG ratio of -60.8 further indicates poor growth-adjusted valuation. Intrinsic value appears far below current levels, suggesting caution.
🏭 Business Model & Health: FACT operates in fertilizers and chemicals, with strong government linkage and established market presence. Competitive advantage lies in legacy operations and demand for agricultural inputs. However, profitability challenges, high debt, and inflated valuations weaken overall health.
📉 Entry Zone: RSI at 51.7 indicates neutral momentum. Support is near 650 ₹, resistance at 1,112 ₹. Entry should be cautious, ideally closer to 700–750 ₹ if valuations normalize. Long-term holding is risky unless profitability stabilizes and debt levels improve.
Positive
- 🏭 [Market Presence](ca://s?q=FACT_market_presence): Established brand in fertilizers and chemicals.
- 📈 [Profit Growth Potential](ca://s?q=FACT_profit_growth_potential): Sector demand driven by agriculture.
- 💸 [Government Linkage](ca://s?q=FACT_government_support): Strong institutional backing supports operations.
Limitation
- 📉 [Profitability](ca://s?q=FACT_profitability): Negative PAT in the latest quarter.
- ⚠️ [Valuation](ca://s?q=FACT_valuation): P/E of 3,829 is far above industry average.
- 💸 [Debt Levels](ca://s?q=FACT_debt_levels): Debt-to-equity ratio of 2.79 is high.
Company Negative News
- 📉 [Quarterly Loss](ca://s?q=FACT_quarterly_loss): Reported -67.9 Cr PAT compared to profit earlier.
- 📊 [Weak Returns](ca://s?q=FACT_weak_returns): ROCE and ROE remain below industry standards.
Company Positive News
- 📈 [DII Support](ca://s?q=FACT_DII_support): Domestic institutions increased holdings slightly by 0.01%.
- 💹 [Stable Demand](ca://s?q=FACT_stable_demand): Fertilizer demand remains consistent in agriculture sector.
Industry
- 🌾 [Agriculture Growth](ca://s?q=Indian_agriculture_growth): Fertilizer demand driven by rising food production needs.
- 📊 [Industry PE](ca://s?q=Fertilizer_industry_PE): Sector average P/E is 15.8, far below FACT’s valuation.
Conclusion
⚠️ FACT currently reflects weak fundamentals, negative profitability, high debt, and extreme overvaluation. While it has strong market presence and government support, financial health is fragile. Entry should be cautious near 700–750 ₹, and long-term holding is not advisable unless profitability stabilizes and valuations normalize.