FACT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.4
| Stock Code | FACT | Market Cap | 58,185 Cr. | Current Price | 899 ₹ | High / Low | 1,112 ₹ |
| Stock P/E | 3,929 | Book Value | 21.2 ₹ | Dividend Yield | 0.02 % | ROCE | 8.65 % |
| ROE | 1.61 % | Face Value | 10.0 ₹ | DMA 50 | 840 ₹ | DMA 200 | 853 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.01 % | PAT Qtr | -67.9 Cr. | PAT Prev Qtr | 20.9 Cr. |
| RSI | 59.0 | MACD | 30.0 | Volume | 1,55,018 | Avg Vol 1Wk | 2,26,005 |
| Low price | 652 ₹ | High price | 1,112 ₹ | PEG Ratio | -62.3 | Debt to equity | 2.79 |
| 52w Index | 53.7 % | Qtr Profit Var | -949 % | EPS | 0.43 ₹ | Industry PE | 18.5 |
Financials & Valuation:
FACT shows very weak fundamentals. ROCE (8.65%) and ROE (1.61%) reflect poor efficiency. EPS of 0.43 ₹ is negligible, and quarterly PAT collapsed to -67.9 Cr. from 20.9 Cr., highlighting severe earnings volatility. Debt-to-equity at 2.79 is high, adding financial risk.
Valuation Indicators:
P/E ratio of 3,929 is drastically higher than the industry average (18.5), indicating extreme overvaluation. Book Value of 21.2 ₹ compared to current price of 899 ₹ shows steep premium pricing. PEG ratio of -62.3 signals unsustainable valuation relative to growth. Dividend yield of 0.02% provides no meaningful income support.
Business Model & Health:
FACT, operating in fertilizers and chemicals, faces cyclical demand and margin pressures. Weak profitability metrics and high leverage undermine competitive strength. Institutional sentiment remains flat, with negligible changes in FII (0.00%) and DII (+0.01%) holdings.
Entry Zone & Holding Guidance:
Technically, support lies around 850–870 ₹, with resistance near 950–970 ₹. Entry should only be considered for speculative trades near support levels with strict stop-losses. Long-term holding is not advisable until profitability stabilizes and valuations normalize.
Positive
- Low book value allows potential for restructuring gains.
- Slight increase in DII holdings (+0.01%).
- Sector demand supported by agriculture and fertilizer consumption.
Limitation
- Extremely high P/E (3,929) vs industry average (18.5).
- Weak ROE (1.61%) and ROCE (8.65%).
- High debt-to-equity (2.79).
- EPS of 0.43 ₹ is negligible.
- Dividend yield of 0.02% offers no support.
Company Negative News
- Quarterly PAT collapsed to -67.9 Cr. from 20.9 Cr.
- Severe earnings volatility undermines investor confidence.
- Overvaluation compared to peers.
Company Positive News
- Slight increase in DII holdings.
- Technical momentum (MACD 30.0) shows short-term bullish bias.
Industry
- Fertilizer and chemical sector benefits from agricultural demand.
- Industry PE (18.5) is far lower than FACT’s, highlighting overvaluation.
- Long-term growth tied to government subsidies and rural demand.
Conclusion
FACT is fundamentally weak with poor profitability, high debt, and extreme overvaluation. Entry near 850–870 ₹ may be considered only for speculative trades with strict stop-losses. Long-term investors should avoid until fundamentals improve and valuations normalize.
Would you like me to extend this into a sector benchmarking overlay comparing FACT against peers like Chambal Fertilizers, Coromandel International, and RCF to highlight relative positioning in efficiency and valuation?