⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
FACT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.6
| Stock Code | FACT | Market Cap | 52,552 Cr. | Current Price | 811 ₹ | High / Low | 1,112 ₹ |
| Stock P/E | 3,548 | Book Value | 21.2 ₹ | Dividend Yield | 0.02 % | ROCE | 8.65 % |
| ROE | 1.61 % | Face Value | 10.0 ₹ | DMA 50 | 799 ₹ | DMA 200 | 854 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.00 % | PAT Qtr | -67.9 Cr. | PAT Prev Qtr | 20.9 Cr. |
| RSI | 54.4 | MACD | 7.35 | Volume | 6,59,950 | Avg Vol 1Wk | 39,49,529 |
| Low price | 565 ₹ | High price | 1,112 ₹ | PEG Ratio | -56.3 | Debt to equity | 2.79 |
| 52w Index | 45.0 % | Qtr Profit Var | -949 % | EPS | 0.43 ₹ | Industry PE | 17.9 |
📊 Core Financials
- Revenue growth: Weak, PAT turned negative (-67.9 Cr.) vs 20.9 Cr. previous quarter
- Profit margins: EPS at 0.43 ₹, ROE 1.61%, ROCE 8.65% — very poor efficiency
- Debt ratios: Debt-to-equity at 2.79, high leverage risk
- Cash flows: Negative profitability raises sustainability concerns
- Return metrics: ROE and ROCE well below industry averages
💹 Valuation Indicators
- P/E Ratio: 3,548, extremely overvalued compared to industry PE of 17.9
- P/B Ratio: ~38.2 (811 ₹ / 21.2 ₹), very high
- PEG Ratio: -56.3, distorted due to earnings volatility
- Intrinsic Value: Current price far above fair value given weak fundamentals
🏢 Business Model & Competitive Advantage
- Operates in fertilizer and chemicals sector
- Competitive advantage limited due to weak profitability and high leverage
- Industry demand supported by agriculture growth, but company-specific execution is weak
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only near 650–700 ₹ range if fundamentals improve
- Long-Term Holding: Not recommended until profitability stabilizes and debt reduces
✅ Positive
- Strong market capitalization at 52,552 Cr. provides scale advantage
- Stock trading above DMA 50 (799 ₹), showing short-term support
- RSI at 54.4 indicates neutral technical position
⚠️ Limitation
- Extremely high P/E ratio (3,548) compared to industry average
- High debt-to-equity ratio (2.79)
- ROE (1.61%) and ROCE (8.65%) are weak
📰 Company Negative News
- PAT turned negative (-67.9 Cr.) vs 20.9 Cr. previous quarter
- No improvement in FII or DII holdings (both unchanged)
- High leverage raises financial risk
🌟 Company Positive News
- Strong liquidity with high trading volumes
- Stock price recovered from 52-week low of 565 ₹
- MACD at 7.35 indicates mild bullish momentum
🏭 Industry
- Industry PE at 17.9, FACT trades at a steep premium
- Sector benefits from agriculture demand and government support, but company-specific fundamentals are weak
🔎 Conclusion
- FACT shows weak fundamentals with negative profitability, high debt, and poor efficiency metrics
- Valuation is extremely stretched compared to industry peers, limiting near-term upside
- Not suitable for long-term holding unless earnings stabilize; entry only near 650–700 ₹ with cautious optimism