FACT - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 2.6

📊 Financial Snapshot & Profitability

Quarterly PAT: ₹57.6 Cr vs ₹8.0 Cr previously — huge surge, though annualized volatility suggests inconsistency.

ROE (1.63%) & ROCE (8.64%): Poor return metrics — capital is being underutilized.

EPS (₹0.64): Extremely low despite high stock price — weak earnings base.

Debt-to-Equity (1.32): Elevated leverage — could burden cash flows and reduce financial flexibility.

Dividend Yield (0.10%): Negligible — not a value-based income play.

💸 Valuation Metrics

Metric Value Interpretation

P/E Ratio 2,739 🚨 Astronomical — implies extreme overvaluation

P/B Ratio ~44.5 Massive premium to book value

PEG Ratio -43.6 Negative — distorted growth metrics or flawed earnings projection

Intrinsic Value — Implied to be far lower than current price

⚠️ Stock price appears heavily detached from fundamentals — momentum or speculative factors may be driving valuation.

🏭 Business Model & Strategic Edge

Sector: Fertilizer and chemical manufacturing — cyclical and highly regulated.

Strengths

Government support due to strategic relevance in agri input supply.

Concerns

Weak earnings yield and operational efficiency.

High debt and poor ROE suggest fragile profitability.

Institutional Sentiment

FII ↑ 0.06% — marginal interest

DII ↑ 0.02% — minor uptick but no strong conviction

📈 Technicals & Entry Zone

Current Price: ₹943

DMA 50/200: ₹937 / ₹871 — price hovering near support

RSI (47.5): Neutral — not in overbought or oversold territory

MACD (-3.24): Bearish momentum

Volume: Lower than average — waning trading interest

🎯 Suggested Entry Zone: ₹800–₹850 (only for speculative entry) Investors should consider entry only if fundamentals improve or market sentiment shifts dramatically.

📌 Long-Term Holding Perspective

FACT may show trading interest due to sector relevance or government stimulus buzz, but it lacks the financial robustness needed for a long-term portfolio hold. Key factors to monitor

Debt reduction strategies

Consistency in PAT margins

Revival in ROE/ROCE above double digits

Clear visibility on cash flows and capex management

Until then, it's best approached with caution or avoided by value-focused investors.

Want a screen of other fertilizer sector stocks with stronger earnings metrics? Or we could map sector cycles to help navigate timing better. Let’s sharpen your strategy together.

Edit in a page