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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Fairchem Organics Ltd

About the Company - Fairchem Organics Ltd

Fairchem Organics Ltd. is a Public Limited Listed company incorporated on 27/03/2019 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24200GJ2019PLC129759 and registration number is 323176. Currently Company is involved in the business activities of Manufacture of various other chemical products(antiknock preparations, anti-freeze preparations, liquids for hydraulic transmission, composite diagnostic or laboratory reagents, writing or drawing ink, chemical substance used in manufacturing of pesticides and other chemical products). Company’s Total Operating Revenue is Rs. 643.18 Cr. and Equity Capital is Rs. 13.02 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Organic - Others253/P & 312, Village Chekhala, Ahmedabad District Gujarat 382115info@fairchem.in
http://www.fairchem.in
Management
NamePosition Held
Mr. Nahoosh JariwalaChairman & Managing Director
Mr. Sumit MaheshwariNominee Director
Mr. Sudhin ChokseyIndependent Director
Mr. Venkatraman SrinivasanIndependent Director
Mr. Darius PandoleIndependent Director
Ms. Sonal AmbaniIndependent Director

Basic Stock Data of Fairchem Organics Ltd

Last Updated: June 17, 2024, 8:34 pm

Market Cap 1,785 Cr.
Current Price 1,371
High / Low1,529/999
Stock P/E44.1
Book Value 223
Dividend Yield0.55 %
ROCE19.4 %
ROE14.8 %
Face Value 10.0
PEG Ratio-4.80

Fairchem Organics Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales107159139168158178225169102152161152148
Expenses8613210613613715918515999133149135128
Operating Profit212833322119409419121720
OPM %20%17%24%19%13%11%18%6%4%13%7%11%13%
Other Income0000000000000
Interest2222222211111
Depreciation2222222222222
Profit before tax18243028181536611681417
Tax %26%22%25%25%26%26%25%29%35%26%26%26%26%
Net Profit13192221131127411261012
EPS in Rs10.2914.4617.1316.0510.338.6320.763.070.479.114.707.909.47

Last Updated: June 4, 2024, 11:05 am

Fairchem Organics Ltd Quarterly Chart

Fairchem Organics Ltd Profit & Loss

MonthMar 2020Mar 2021Mar 2022Mar 2023TTM
Sales306397643648567
Expenses258328538576516
Operating Profit49691057251
OPM %16%17%16%11%9%
Other Income60011
Interest77765
Depreciation67789
Profit before tax4256915939
Tax %18%24%26%26%
Net Profit3542684429
EPS in Rs32.6252.1533.4122.18
Dividend Payout %0%11%25%22%

Fairchem Organics Ltd Profit & Loss Yearly Chart

Fairchem Organics Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:28%
TTM:-9%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:8%
TTM:-5%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:21%
1 Year:14%
Return on Equity
10 Years:%
5 Years:%
3 Years:26%
Last Year:18%

Last Updated: April 17, 2024, 1:26 pm

Fairchem Organics Ltd Balance Sheet

MonthMar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital013131313
Reserves127156219246253
Borrowings6757625034
Other Liabilities2533303331
Total Liabilities219259324342331
Fixed Assets126126141156153
CWIP929423539
Investments00000
Other Assets83103141151139
Total Assets219259324342331

Fairchem Organics Ltd Reserves and Borrowings Chart

Fairchem Organics Ltd Cash Flow

MonthMar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 31404050
Cash from Investing Activity -24-23-34-14
Cash from Financing Activity -7-17-6-35
Net Cash Flow00-00

Fairchem Organics Ltd Financial Efficiency Indicators

MonthMar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days4543353533
Inventory Days6564576155
Days Payable12157810
Cash Conversion Cycle9891858978
Working Capital Days6772697467
ROCE %30%38%22%

Fairchem Organics Ltd Financial Efficiency Indicators Chart

Fairchem Organics Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters74.06%74.06%58.89%58.88%58.88%58.85%58.89%58.89%58.89%58.89%58.89%58.89%
FIIs0.27%0.32%6.22%6.34%6.15%6.22%6.24%6.23%6.24%6.19%6.22%6.29%
DIIs0.57%1.56%5.32%5.39%5.46%5.48%5.40%5.19%5.23%5.33%5.28%5.26%
Public25.10%24.06%29.56%29.39%29.50%29.45%29.48%29.69%29.65%29.59%29.61%29.56%
No. of Shareholders12,31816,01223,45924,64724,39829,81732,86933,13733,20833,35231,66531,496

Fairchem Organics Ltd Shareholding Pattern Chart

No. of Fairchem Organics Ltd Shareholders

This stock is not held by any mutual fund

Fairchem Organics Ltd ROCE Trend

Fairchem Organics Ltd EPS Trend

Fairchem Organics Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)31.1033.4152.1532.6326.65
Diluted EPS (Rs.)31.1033.4152.1532.6326.65
Cash EPS (Rs.)38.2339.6757.6337.680.00
Book Value[Excl.RevalReserv]/Share (Rs.)222.67199.11178.29129.590.00
Book Value[Incl.RevalReserv]/Share (Rs.)222.67199.11178.29129.590.00
Dividend / Share (Rs.)7.507.5013.003.500.00
Revenue From Operations / Share (Rs.)477.29497.69493.96304.560.00
PBDIT / Share (Rs.)52.3156.0780.8152.960.00
PBIT / Share (Rs.)45.1949.8175.3447.910.00
PBT / Share (Rs.)41.9345.0070.0742.670.00
Net Profit / Share (Rs.)31.1033.4152.1532.630.00
PBDIT Margin (%)10.9611.2616.3617.3817.93
PBIT Margin (%)9.4610.0015.2515.7315.98
PBT Margin (%)8.789.0414.1814.0113.83
Net Profit Margin (%)6.516.7110.5510.7111.32
Return on Networth / Equity (%)13.9616.7729.2525.1730.52
Return on Capital Employeed (%)19.0823.5238.2130.0131.44
Return On Assets (%)12.1112.7020.9516.4215.85
Long Term Debt / Equity (X)0.000.000.040.150.14
Total Debt / Equity (X)0.020.190.260.280.53
Asset Turnover Ratio (%)1.841.942.211.660.00
Current Ratio (X)5.102.222.041.931.19
Quick Ratio (X)2.421.030.991.040.62
Inventory Turnover Ratio (X)6.126.698.176.890.00
Dividend Payout Ratio (NP) (%)0.0038.916.710.0030.22
Dividend Payout Ratio (CP) (%)0.0032.776.070.0025.79
Earning Retention Ratio (%)0.0061.0993.290.0069.78
Cash Earning Retention Ratio (%)0.0067.2393.930.0074.21
Interest Coverage Ratio (X)16.0711.6615.3510.118.35
Interest Coverage Ratio (Post Tax) (X)10.557.9510.917.236.27
Enterprise Value (Cr.)1552.811240.342021.191022.580.00
EV / Net Operating Revenue (X)2.501.913.142.580.00
EV / EBITDA (X)22.8016.9919.2114.830.00
MarketCap / Net Operating Revenue (X)2.491.843.052.460.00
Retention Ratios (%)0.0061.0893.280.0069.77
Price / BV (X)5.334.598.445.780.00
Price / Net Operating Revenue (X)2.491.843.052.460.00
EarningsYield0.020.030.030.040.00

Fairchem Organics Ltd Profitability Ratios (%)

Fairchem Organics Ltd Liquidity Ratios

Fairchem Organics Ltd Liquidity Ratios (%)

Fairchem Organics Ltd Interest Coverage Ratios (%)

Fairchem Organics Ltd Valuation Ratios

Fair Value

Fair Value: 1,463.48

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 6.75% compared to the current price 1371

Intrinsic Value: 2,744.16

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 100.16% compared to the current price ₹1371

Last 5 Year EPS CAGR: 87.51%

*Investments are subject to market risks

Strength and Weakness of Fairchem Organics Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 18.00%, which is a positive sign.
  2. The company has higher reserves (200.20 cr) compared to borrowings (54.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (512.20 cr) and profit (57.40 cr) over the years.
  1. The stock has a high average Working Capital Days of 69.80, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 88.20, which may not be favorable.

FAQ

What is the latest fair value of Fairchem Organics Ltd?

The latest fair value of Fairchem Organics Ltd is ₹1463.48.

What is the Market Cap of Fairchem Organics Ltd?

The Market Cap of Fairchem Organics Ltd is 1,785 Cr..

What is the current Stock Price of Fairchem Organics Ltd as on 23 June 2024?

The current stock price of Fairchem Organics Ltd as on 23 June 2024 is ₹1,371.

What is the High / Low of Fairchem Organics Ltd stocks in FY 2024?

In FY 2024, the High / Low of Fairchem Organics Ltd stocks is 1,529/999.

What is the Stock P/E of Fairchem Organics Ltd?

The Stock P/E of Fairchem Organics Ltd is 44.1.

What is the Book Value of Fairchem Organics Ltd?

The Book Value of Fairchem Organics Ltd is 223.

What is the Dividend Yield of Fairchem Organics Ltd?

The Dividend Yield of Fairchem Organics Ltd is 0.55 %.

What is the ROCE of Fairchem Organics Ltd?

The ROCE of Fairchem Organics Ltd is 19.4 %.

What is the ROE of Fairchem Organics Ltd?

The ROE of Fairchem Organics Ltd is 14.8 %.

What is the Face Value of Fairchem Organics Ltd?

The Face Value of Fairchem Organics Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Fairchem Organics Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE