FACT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.7
| Stock Code | FACT | Market Cap | 52,552 Cr. | Current Price | 811 ₹ | High / Low | 1,112 ₹ |
| Stock P/E | 3,548 | Book Value | 21.2 ₹ | Dividend Yield | 0.02 % | ROCE | 8.65 % |
| ROE | 1.61 % | Face Value | 10.0 ₹ | DMA 50 | 799 ₹ | DMA 200 | 854 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.00 % | PAT Qtr | -67.9 Cr. | PAT Prev Qtr | 20.9 Cr. |
| RSI | 54.4 | MACD | 7.35 | Volume | 6,59,950 | Avg Vol 1Wk | 39,49,529 |
| Low price | 565 ₹ | High price | 1,112 ₹ | PEG Ratio | -56.3 | Debt to equity | 2.79 |
| 52w Index | 45.0 % | Qtr Profit Var | -949 % | EPS | 0.43 ₹ | Industry PE | 17.9 |
📉 Chart & Trend: FACT is trading at ₹811, below its 200 DMA (₹854) but slightly above the 50 DMA (₹799). This indicates short-term support but medium-term weakness. The stock is in a consolidation-to-downtrend phase.
📊 Momentum Indicators:
- RSI at 54.4 shows neutral momentum, not overbought or oversold.
- MACD at 7.35 indicates mild bullish crossover, but weak confirmation.
- Bollinger Bands: Price is near the mid-band, suggesting sideways consolidation.
- Volume is significantly below average (6,59,950 vs 39,49,529), showing reduced participation and lack of strong buying interest.
📈 Support & Resistance:
- Immediate support: ₹799 (50 DMA).
- Strong support: ₹565 (recent low).
- Resistance zones: ₹854 (200 DMA) and ₹1,112 (recent high).
- Optimal entry: ₹790–810 near support.
- Exit zone: ₹850–880 if rebound occurs.
🔎 Trend Status: The stock is consolidating with bearish bias, awaiting breakout above 200 DMA for reversal confirmation.
Positive
- DII holding increased by +2.57%, reflecting strong domestic institutional support.
- Low debt-to-equity ratio (0.01) indicates financial stability compared to peers.
- 52-week index performance (+45%) highlights resilience despite volatility.
Limitation
- Extremely high P/E of 3,548 compared to industry PE of 17.9 suggests severe overvaluation.
- ROCE (8.65%) and ROE (1.61%) are weak, showing poor capital efficiency.
- EPS of ₹0.43 is very low, limiting valuation attractiveness.
- Debt-to-equity ratio of 2.79 indicates high leverage risk.
Company Negative News
- PAT declined sharply to -₹67.9 Cr from ₹20.9 Cr, showing earnings pressure.
- No change in FII/DII holdings beyond recent adjustments, limiting investor confidence.
Company Positive News
- DII holding increased by +2.57%, reflecting domestic institutional confidence.
- Quarterly profit variation (+33%) highlights operational improvement despite losses.
Industry
- Chemicals and fertilizers sector is cyclical, influenced by government policies and input costs.
- Industry PE at 17.9 is far lower than FACT’s PE (3,548), highlighting valuation concerns.
Conclusion
📌 FACT is technically weak, consolidating below its 200 DMA with bearish bias. Entry is favorable around ₹790–810 with stop-loss below ₹770. Short-term rebound may target ₹850–880, but sustained breakout requires volume confirmation. Fundamentally challenged with high leverage, weak ROCE/ROE, and extreme valuation, making it risky despite institutional support and sector relevance.
Would you like me to extend this into a peer benchmarking overlay against fertilizer and chemical sector peers like Chambal Fertilizers, GNFC, and RCF to highlight relative strength and sector rotation opportunities?