Fairchem Organics Ltd (FAIRCHEMOR) AI Stock Analysis

• Market Cap: ₹10.13B
• Dividend Yield: 0.96%
• Average Volume (3M): 751.00
• Price to Earnings (P/E): 110.1
• Beta (1Y): -0.09
• Revenue Growth: -19.46%
• EPS Growth: -80.73%
• Country: IN
• Employees: 227
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.90
• Shares Outstanding: 13,020,902
• 10 Day Avg. Volume: 634
• 30 Day Avg. Volume: 751
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 24.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: ₹971.00 ▲(24.78% 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 experiencing financial stress with declining revenue, profitability, and cash flow metrics. Despite a robust balance sheet, increasing leverage and reduced shareholder returns are concerns.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.69B	5.38B	6.21B	6.47B	6.42B	3.96B
Gross Profit	922.34M	666.52M	1.54B	1.56B	1.78B	1.25B
EBITDA	582.19M	441.21M	681.10M	729.68M	1.05B	688.05M
Net Income	331.42M	219.74M	405.00M	435.01M	679.06M	424.85M
Balance Sheet
Total Assets	0.00	4.02B	3.34B	3.42B	3.24B	2.59B
Cash, Cash Equivalents and Short-Term Investments	1.27M	12.86M	84.00K	838.00K	83.00K	460.00K
Total Debt	0.00	630.32M	73.18M	501.68M	620.30M	568.03M
Total Liabilities	-2.98B	997.98M	443.77M	831.48M	919.26M	898.68M
Stockholders Equity	2.98B	3.02B	2.90B	2.59B	2.32B	1.69B
Cash Flow
Free Cash Flow	0.00	-464.87M	563.52M	348.89M	58.91M	163.03M
Operating Cash Flow	0.00	-203.78M	744.80M	496.15M	404.85M	394.26M
Investing Cash Flow	0.00	-255.71M	-176.25M	-144.92M	-341.84M	-228.02M
Financing Cash Flow	0.00	459.49M	-568.55M	-351.24M	-63.19M	-166.29M

Fairchem Organics Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 778.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 778.15 is below the 20-day moving average (MA) of 792.36, below the 50-day MA of 837.40, and below the 200-day MA of 927.69, indicating a bearish trend. The MACD of -12.58 indicates Negative momentum. The RSI at 35.07 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 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
INDOAMIN	71 Outperform	9.90B	14.90	17.63%	0.37%	14.11%	29.69%
AMNPLST	70 Neutral	12.35B	31.04	15.85%	0.22%	2.48%	-1.95%
JAYAGROGN	70 Neutral	11.39B	12.77	9.52%	1.06%	7.47%	-3.69%
FAIRCHEMOR	54 Neutral	₹10.13B	110.13	―	0.96%	-19.46%	-80.73%
MANALIPETC	53 Neutral	11.10B	36.25	2.68%	0.78%	-8.24%	8.89%
VALIANTORG	46 Neutral	9.33B	180.62	-0.52%	―	9.59%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%