⚠ 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.
FLUOROCHEM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | FLUOROCHEM | Market Cap | 34,361 Cr. | Current Price | 3,133 ₹ | High / Low | 4,098 ₹ |
| Stock P/E | 50.1 | Book Value | 620 ₹ | Dividend Yield | 0.10 % | ROCE | 11.0 % |
| ROE | 9.28 % | Face Value | 1.00 ₹ | DMA 50 | 3,328 ₹ | DMA 200 | 3,500 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | 0.08 % | PAT Qtr | 139 Cr. | PAT Prev Qtr | 195 Cr. |
| RSI | 41.9 | MACD | -75.3 | Volume | 95,922 | Avg Vol 1Wk | 88,984 |
| Low price | 2,917 ₹ | High price | 4,098 ₹ | PEG Ratio | -5.68 | Debt to equity | 0.22 |
| 52w Index | 18.4 % | Qtr Profit Var | -8.86 % | EPS | 61.4 ₹ | Industry PE | 25.7 |
📊 Core Financials
- Quarterly PAT declined from ₹195 Cr. to ₹139 Cr., showing short-term weakness.
- ROCE at 11.0% and ROE at 9.28% → modest efficiency compared to peers.
- Debt-to-equity ratio of 0.22 → manageable leverage.
- Cash flows supported by specialty chemicals operations but margins under pressure.
💹 Valuation Indicators
- P/E Ratio: 50.1 vs Industry PE of 25.7 → trading at a premium.
- P/B Ratio: ~5.05x (₹3133 / ₹620) → high valuation relative to book value.
- PEG Ratio: -5.68 → negative, indicating weak growth visibility.
- Intrinsic Value: Current price above fair zone, reflecting optimism in specialty chemicals demand.
🏢 Business Model & Competitive Advantage
- Specialty chemicals manufacturer with focus on fluorochemicals and refrigerants.
- Strong presence in niche chemical segments provides competitive advantage.
- Exposure to global demand cycles and raw material costs affects earnings stability.
📈 Technical & Entry Zone
- Current Price: ₹3133, below 50 DMA (₹3328) and 200 DMA (₹3500).
- RSI: 41.9 → approaching oversold zone.
- MACD: -75.3 → bearish momentum.
- Entry Zone: Attractive accumulation between ₹2900–₹3000.
- Long-Term Holding: Suitable for investors with 3–5 year horizon, given sector resilience.
✅ Positive
- Strong brand presence in fluorochemicals.
- Low debt levels (0.22 debt-to-equity).
- DII holdings increased by 0.08%, showing institutional support.
⚠️ Limitation
- High P/E and P/B ratios reflect expensive valuation.
- Quarterly profit decline (-8.86%) raises concerns.
- Weak ROE and ROCE compared to peers.
📉 Company Negative News
- Decline in FII holdings (-0.05%).
- Stock corrected from 52-week high of ₹4098.
📈 Company Positive News
- EPS of ₹61.4 reflects profitability despite margin pressures.
- DII inflows indicate domestic institutional confidence.
🏭 Industry
- Specialty chemicals sector supported by global demand in refrigerants and fluorochemicals.
- Industry PE at 25.7 indicates moderate investor confidence.
🔎 Conclusion
FLUOROCHEM is a specialty chemicals company with niche market presence and manageable debt, but currently trading at premium valuations.
Weak efficiency metrics and negative PEG ratio suggest limited growth visibility in the near term.
Best accumulated around ₹2900–₹3000 for investors with a 3–5 year horizon, while monitoring profitability trends.