FACT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.6
| Stock Code | FACT | Market Cap | 51,055 Cr. | Current Price | 788 ₹ | High / Low | 1,112 ₹ |
| Stock P/E | 3,447 | Book Value | 21.2 ₹ | Dividend Yield | 0.03 % | ROCE | 8.65 % |
| ROE | 1.61 % | Face Value | 10.0 ₹ | DMA 50 | 799 ₹ | DMA 200 | 853 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.00 % | PAT Qtr | -67.9 Cr. | PAT Prev Qtr | 20.9 Cr. |
| RSI | 50.4 | MACD | 6.44 | Volume | 3,62,789 | Avg Vol 1Wk | 32,32,898 |
| Low price | 565 ₹ | High price | 1,112 ₹ | PEG Ratio | -54.7 | Debt to equity | 2.79 |
| 52w Index | 40.8 % | Qtr Profit Var | -949 % | EPS | 0.43 ₹ | Industry PE | 17.2 |
📊 FACT shows weak fundamentals and high valuation risk. The P/E of 3,447 is extremely inflated compared to the industry average (17.2), while ROCE (8.65%) and ROE (1.61%) are very low, indicating poor efficiency. EPS is just 0.43 ₹, and quarterly PAT turned negative (-67.9 Cr. vs 20.9 Cr.), raising concerns. Technical indicators (RSI 50.4, MACD 6.44) are neutral-to-positive, but the stock is trading below DMA 50 (799 ₹) and DMA 200 (853 ₹). This makes FACT a weak candidate for swing trading, suitable only for cautious short-term plays near strong support.
💡 Optimal Entry Price: Around 770–790 ₹ (close to support zone near 765–770 ₹).
📉 Exit Strategy (if already holding): Consider booking profits near 800–820 ₹ (DMA resistance) unless fundamentals improve.
Positive
- DII holdings increased slightly, showing domestic institutional support.
- Debt-to-equity ratio of 2.79 is high but manageable for a PSU-type company.
- RSI near neutral (50.4) suggests potential for short-term rebound.
Limitation
- Extremely high P/E (3,447) compared to industry average (17.2), showing severe overvaluation.
- Weak ROCE (8.65%) and ROE (1.61%) indicate poor efficiency.
- Dividend yield of 0.03% offers negligible income support.
- Stock trading below DMA 50 and DMA 200, reflecting technical weakness.
Company Negative News
- Quarterly PAT turned negative (-67.9 Cr. vs 20.9 Cr.).
- EPS remains very low at 0.43 ₹.
- Volume significantly lower than average (3,62,789 vs 32,32,898), showing reduced trading interest.
Company Positive News
- DII holdings stable, showing domestic support.
- MACD positive (6.44), suggesting mild technical recovery potential.
Industry
- Industry P/E is 17.2, far below FACT’s 3,447, highlighting extreme premium valuation.
- Chemicals and fertilizers sector remains cyclical, with demand tied to agriculture policies.
Conclusion
⚠️ FACT is a weak swing trade candidate due to poor fundamentals, extreme valuation, and negative earnings. Entry near 770–790 ₹ may offer limited upside, but risks outweigh rewards. Exit targets should be set around 800–820 ₹, with a strict stop-loss near 760 ₹ to manage downside risk.