Fairchem Organics Ltd (FAIRCHEMOR) AI Stock Analysis

• Market Cap: ₹11.02B
• Dividend Yield: 0.87%
• Average Volume (3M): 786.00
• Price to Earnings (P/E): 118.5
• Beta (1Y): -0.05
• Revenue Growth: -19.46%
• EPS Growth: -80.73%
• Country: IN
• Employees: 227
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): 0.90
• Shares Outstanding: 13,020,902
• 10 Day Avg. Volume: 684
• 30 Day Avg. Volume: 786
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹971.00
• Price Target Upside: 14.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ₹971.00 ▲(14.76% Upside)

Fairchem Organics Ltd faces significant financial challenges with declining profitability and cash flow performance, leading to a cautious outlook. The technical analysis shows mixed signals, while the valuation suggests potential overvaluation. These factors result in a moderate overall stock score.

Fairchem Organics Ltd Business Overview & Revenue Model

Company Description

Fairchem Organics Ltd (FAIRCHEMOR) is a leading chemical manufacturing company in India, specializing in the production of oleochemicals and nutraceuticals. The company operates within the specialty chemicals sector, focusing on the production of high-quality, environmentally friendly products derived from renewable resources. Fairchem Organics caters to a diverse range of industries, including food, pharmaceuticals, personal care, and industrial applications, offering products such as fatty acids, tocopherols, and nutraceutical ingredients.

How the Company Makes Money

Fairchem Organics Ltd generates revenue primarily through the manufacturing and sale of its oleochemical and nutraceutical products. The company's key revenue streams include the sale of fatty acids, which are used in various industrial applications; tocopherols, which are natural antioxidants used in the food and pharmaceutical industries; and other specialty chemicals utilized in personal care products. Additionally, Fairchem Organics benefits from strategic partnerships and a robust distribution network that allows it to reach a wide range of customers both domestically and internationally, thereby enhancing its market presence and contributing to its earnings.

Fairchem Organics Ltd Financial Statement Overview

Summary

Fairchem Organics Ltd is facing financial stress with declining revenue, profitability, and cash flow metrics. While its balance sheet remains solid, increasing leverage and reduced returns are concerns. The company needs to address operational inefficiencies and cash flow issues to stabilize its financial health.

Income Statement

Fairchem Organics Ltd has shown a significant decline in key profitability metrics over the last year, with the gross profit margin falling to 12.4% from previous highs. The net profit margin decreased to 4.1%, indicating challenges in maintaining profitability. Revenue growth is negative, with a 13.4% decrease from the previous year. The EBIT and EBITDA margins have also declined, reflecting operational inefficiencies.

Balance Sheet

The company maintains a solid balance sheet with a healthy equity ratio of 75.2%, suggesting strong financial stability. However, the debt-to-equity ratio has increased, signaling a rise in leverage. The return on equity (ROE) dropped to 7.3%, indicating reduced shareholder returns.

Cash Flow

Cash flow performance has weakened considerably, with a significant drop in free cash flow and a negative operating cash flow. The free cash flow to net income ratio is negative, highlighting cash flow challenges. The operating cash flow to net income ratio turned negative, underlining issues in cash generation relative to net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2021	Mar 2022
Income Statement
Total Revenue	5.69B	5.38B	6.21B	6.47B	3.96B	6.42B
Gross Profit	1.26B	666.52M	1.54B	1.56B	1.25B	1.78B
EBITDA	582.19M	441.21M	681.10M	729.68M	688.05M	1.05B
Net Income	331.42M	219.74M	405.00M	435.01M	424.85M	679.06M
Balance Sheet
Total Assets	0.00	4.02B	3.34B	3.42B	2.59B	3.24B
Cash, Cash Equivalents and Short-Term Investments	1.27M	12.86M	84.00K	838.00K	460.00K	83.00K
Total Debt	0.00	630.32M	73.18M	501.68M	568.03M	620.30M
Total Liabilities	-2.98B	997.98M	443.77M	831.48M	898.68M	919.26M
Stockholders Equity	2.98B	3.02B	2.90B	2.59B	1.69B	2.32B
Cash Flow
Free Cash Flow	0.00	-464.87M	563.52M	348.89M	163.03M	58.91M
Operating Cash Flow	0.00	-203.78M	744.80M	496.15M	394.26M	404.85M
Investing Cash Flow	0.00	-255.71M	-176.25M	-144.92M	-228.02M	-341.84M
Financing Cash Flow	0.00	459.49M	-568.55M	-351.24M	-166.29M	-63.19M

Fairchem Organics Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 846.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:FAIRCHEMOR, the sentiment is Negative. The current price of 846.1 is below the 20-day moving average (MA) of 891.78, below the 50-day MA of 929.04, and below the 200-day MA of 943.53, indicating a bearish trend. The MACD of -22.99 indicates Positive momentum. The RSI at 32.23 is Neutral, neither overbought nor oversold. The STOCH value of 12.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:FAIRCHEMOR.

Fairchem Organics Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JAYAGROGN	67 Neutral	₹11.90B	13.35		1.04%	7.47%	-3.69%
AMNPLST	65 Neutral	₹11.85B	28.92		0.24%	2.12%	2.98%
Sector *	61 Neutral	$10.08B	5.96	1.53%	3.00%	3.04%	-41.02%
INDOAMIN	60 Neutral	₹9.88B	103.93		0.37%	14.28%	31.65%
FAIRCHEMOR	54 Neutral	₹11.02B	118.52		0.87%	-19.46%	-80.73%
MANALIPETC	48 Neutral	₹11.35B	37.03		1.14%	-13.10%	52.65%
VALIANTORG	43 Neutral	₹9.52B	―		―	-0.59%	66.62%