FLUOROCHEM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | FLUOROCHEM | Market Cap | 39,568 Cr. | Current Price | 3,602 ₹ | High / Low | 4,054 ₹ |
| Stock P/E | 57.6 | Book Value | 620 ₹ | Dividend Yield | 0.08 % | ROCE | 11.0 % |
| ROE | 9.28 % | Face Value | 1.00 ₹ | DMA 50 | 3,317 ₹ | DMA 200 | 3,451 ₹ |
| Chg in FII Hold | -0.03 % | Chg in DII Hold | 0.67 % | PAT Qtr | 139 Cr. | PAT Prev Qtr | 195 Cr. |
| RSI | 69.0 | MACD | 50.7 | Volume | 5,29,275 | Avg Vol 1Wk | 1,92,059 |
| Low price | 2,917 ₹ | High price | 4,054 ₹ | PEG Ratio | -6.54 | Debt to equity | 0.22 |
| 52w Index | 60.3 % | Qtr Profit Var | -8.86 % | EPS | 61.4 ₹ | Industry PE | 28.9 |
📊 Financials: FLUOROCHEM shows weak fundamentals with ROE at 9.28% and ROCE at 11.0%, reflecting modest efficiency. EPS at ₹61.4 is reasonable but not strong relative to valuation. Quarterly PAT declined to ₹139 Cr. from ₹195 Cr., highlighting earnings pressure. Debt-to-equity at 0.22 indicates manageable leverage.
💹 Valuation: Current P/E of 57.6 is significantly higher than the industry average of 28.9, suggesting steep overvaluation. PEG ratio of -6.54 signals poor growth prospects. Book value of ₹620 vs. CMP ₹3,602 highlights a very high P/B multiple, justified only by sectoral positioning and momentum.
🏗️ Business Model: FLUOROCHEM operates in specialty chemicals and fluorochemicals, benefiting from global demand in refrigerants and industrial applications. Its competitive advantage lies in niche product offerings and export exposure, but profitability metrics remain weak.
📈 Entry Zone: Accumulation only near ₹3,300–₹3,350 (close to DMA50 support) offers safer risk-reward. RSI at 69.0 indicates overbought conditions, while MACD at 50.7 shows bullish momentum. Exit strategy near ₹3,700–₹3,750 with stop-loss around ₹3,250.
🕰️ Long-Term Holding: Weak efficiency metrics, declining profits, and steep valuation limit long-term attractiveness. Suitable only for cautious investors seeking exposure to specialty chemicals with moderate risk.
Positive
- Debt-to-equity ratio at 0.22 ensures stability
- Strong sectoral demand in specialty chemicals
- DII holdings increased (+0.67%)
Limitation
- High P/E (57.6) vs. industry average (28.9)
- Negative PEG ratio (-6.54) signals poor growth outlook
- Weak ROE (9.28%) and ROCE (11.0%)
- Quarterly PAT decline (₹195 Cr. → ₹139 Cr.)
- FII holdings decreased (-0.03%)
Company Negative News
- Profit decline in recent quarter
- Valuation concerns with steep P/E
Company Positive News
- DII inflows (+0.67%) support stability
- Strong demand outlook for specialty chemicals
Industry
- Chemicals industry P/E at 28.9 reflects moderate valuations
- Sector supported by global demand for fluorochemicals
Conclusion
FLUOROCHEM is financially stable with low debt and sectoral demand support, but weak efficiency metrics, declining profits, and steep valuation limit upside. Entry near ₹3,300–₹3,350 is safer, with profit booking advised near ₹3,700–₹3,750. Long-term holding is not recommended for conservative investors due to poor fundamentals.