⚠ 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: 2.2
| Stock Code | FACT | Market Cap | 50,537 Cr. | Current Price | 780 ₹ | High / Low | 1,112 ₹ |
| Stock P/E | 3,412 | Book Value | 21.2 ₹ | Dividend Yield | 0.03 % | ROCE | 8.65 % |
| ROE | 1.61 % | Face Value | 10.0 ₹ | DMA 50 | 853 ₹ | DMA 200 | 883 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.00 % | PAT Qtr | -67.9 Cr. | PAT Prev Qtr | 20.9 Cr. |
| RSI | 36.2 | MACD | -20.8 | Volume | 2,21,837 | Avg Vol 1Wk | 2,86,774 |
| Low price | 565 ₹ | High price | 1,112 ₹ | PEG Ratio | -54.1 | Debt to equity | 2.79 |
| 52w Index | 39.3 % | Qtr Profit Var | -949 % | EPS | 0.43 ₹ | Industry PE | 18.4 |
📊 Core Financials
- Revenue growth: Weak, PAT turned negative (-67.9 Cr vs 20.9 Cr), showing severe volatility.
- Profit margins: EPS at 0.43 ₹, very low relative to market cap.
- Debt ratios: Debt-to-equity at 2.79, high leverage increases financial risk.
- Cash flows: Likely stressed due to losses and high debt burden.
- Return metrics: ROCE 8.65 %, ROE 1.61 % — poor efficiency and weak shareholder returns.
💹 Valuation Indicators
- P/E ratio: 3,412, extremely inflated compared to industry average (18.4), suggests severe overvaluation.
- P/B ratio: Current Price / Book Value ≈ 36.8, very expensive relative to assets.
- PEG ratio: -54.1, not meaningful due to negative earnings trend.
- Intrinsic value: Current valuation not justified by fundamentals.
🏢 Business Model & Competitive Advantage
- Operates in fertilizer and chemicals sector, heavily dependent on government policies and subsidies.
- Competitive advantage limited by cyclical demand and regulatory dependence.
- High debt and weak profitability undermine long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry zone: Attractive only near 560–600 ₹ levels, close to 52-week low support.
- Long-term holding: Risky; fundamentals are weak, better suited for speculative traders than long-term investors.
Positive
- Large market capitalization (50,537 Cr) provides liquidity.
- Low dividend yield (0.03 %) but at least some payout.
- Stock has strong trading volumes, ensuring liquidity.
Limitation
- Negative PAT in latest quarter.
- Extremely high P/E ratio (3,412) compared to industry average (18.4).
- High debt-to-equity ratio (2.79).
- Weak ROE (1.61 %) and ROCE (8.65 %).
Company Negative News
- Quarterly PAT turned negative (-67.9 Cr vs 20.9 Cr).
- Technical indicators weak: RSI at 36.2, MACD negative.
- Stock corrected sharply from 52-week high of 1,112 ₹.
Company Positive News
- Strong institutional liquidity, though no change in FII/DII holdings.
- Stock remains above 52-week low (565 ₹), showing some investor confidence.
Industry
- Fertilizer and chemicals industry highly cyclical, dependent on government subsidies and monsoon conditions.
- Industry PE at 18.4, far lower than FACT’s valuation, highlighting overpricing.
Conclusion
- FACT shows weak fundamentals with negative profitability, high debt, and inflated valuation multiples.
- Valuation is severely stretched compared to industry peers, limiting upside potential.
- Entry advisable only near lower support levels; long-term holding not recommended unless profitability stabilizes and debt reduces significantly.
Would you like me to also prepare a comparative HTML snapshot against peers like Chambal Fertilizers and GNFC to highlight FACT’s relative valuation and weaknesses?