FACT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.4
| Stock Code | FACT | Market Cap | 51,788 Cr. | Current Price | 800 ₹ | High / Low | 1,112 ₹ |
| Stock P/E | 3,497 | Book Value | 21.2 ₹ | Dividend Yield | 0.02 % | ROCE | 8.65 % |
| ROE | 1.61 % | Face Value | 10.0 ₹ | DMA 50 | 846 ₹ | DMA 200 | 880 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.00 % | PAT Qtr | -67.9 Cr. | PAT Prev Qtr | 20.9 Cr. |
| RSI | 42.9 | MACD | -20.1 | Volume | 74,122 | Avg Vol 1Wk | 1,46,358 |
| Low price | 565 ₹ | High price | 1,112 ₹ | PEG Ratio | -55.5 | Debt to equity | 2.79 |
| 52w Index | 43.0 % | Qtr Profit Var | -949 % | EPS | 0.43 ₹ | Industry PE | 18.6 |
📊 FACT shows weak potential for swing trading. The fundamentals are poor with extremely high P/E (3,497 vs industry 18.6), very low EPS (0.43 ₹), and weak return ratios (ROCE 8.65%, ROE 1.61%). Debt-to-equity is high at 2.79, raising leverage concerns. The company reported a quarterly loss (-67.9 Cr. vs profit of 20.9 Cr. previously), which is a major red flag. Technically, the stock is trading below both 50 DMA (846 ₹) and 200 DMA (880 ₹), with RSI at 42.9 and MACD (-20.1) signaling bearish momentum. Volume is also lower than average, showing reduced trading interest. Overall, the stock is risky for swing trading.
💡 Optimal Entry Price: Around 770–790 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 840–860 ₹ (resistance zone close to DMA levels) unless fundamentals improve significantly.
✅ Positive
- Large market cap (51,788 Cr.) ensures liquidity.
- Stock has strong 52-week range (565 ₹ – 1,112 ₹), offering volatility for traders.
- Debt-to-equity ratio has scope to improve if earnings stabilize.
⚠️ Limitation
- Extremely high P/E ratio (3,497) compared to industry PE (18.6).
- Weak return ratios: ROCE 8.65% and ROE 1.61%.
- Dividend yield negligible at 0.02%.
- PEG ratio (-55.5) suggests severe valuation concerns.
📉 Company Negative News
- Quarterly PAT turned negative (-67.9 Cr.) vs 20.9 Cr. previously.
- Quarterly profit variation -949%, showing sharp deterioration.
- Technical indicators point to bearish momentum.
📈 Company Positive News
- Stock remains above long-term low (565 ₹), showing some resilience.
- Stable institutional holding (no major changes in FII/DII positions).
🏭 Industry
- Industry PE at 18.6, far lower than company’s PE, highlighting overvaluation.
- Chemical/fertilizer sector outlook remains cyclical, dependent on government policies and demand.
🔎 Conclusion
FACT is fundamentally weak and technically bearish, making it a poor candidate for swing trading. Entry around 770–790 ₹ may offer limited opportunity, but exit near 840–860 ₹ is advisable if already holding. Traders should remain cautious due to high valuation, losses, and weak return ratios.