Fairchem Organics Ltd (FAIRCHEMOR) AI Stock Analysis

• Market Cap: ₹7.43B
• Dividend Yield: 1.07%
• Average Volume (3M): 1.36K
• Price to Earnings (P/E): 314.7
• Beta (1Y): -0.17
• Revenue Growth: -22.10%
• EPS Growth: -85.56%
• Country: IN
• Employees: 227
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.07
• Shares Outstanding: 12,595,902
• 10 Day Avg. Volume: 3,155
• 30 Day Avg. Volume: 1,356
• PEG Ratio: -1.15
• Price to Book (P/B): 3.84
• Price to Sales (P/S): 2.16
• P/FCF Ratio: -24.96
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: ₹581.00 ▼(-24.16% Downside)
• Action: Reiterated Date: 11/19/25
• Date: Action: Reiterated 11/19/25

Fairchem Organics Ltd faces significant challenges with financial performance and technical indicators both pointing to weaknesses. The high P/E ratio suggests overvaluation, adding to the risk profile. The lack of positive earnings call data or corporate events further underscores the need for caution.

Positive Factors

Strong balance sheet

A high equity ratio (75.2%) provides durable solvency and capital flexibility. Over the next 2–6 months this supports working-capital needs, buffers commodity-cycle volatility, allows selective capex or repairs without urgent refinancing, and reduces short-term default risk.

Value-added specialty products

Fairchem's focus on oleochemicals and performance chemicals positions it in higher-value, industrial product niches. These specialty products often have stickier customer relationships, technical entry barriers, and better long-term margin sustainability versus commodity chemicals.

Dual revenue streams

Operating both manufacturing and trading/distribution provides structural revenue diversification. Manufacturing captures value-added margin while trading smooths volumes and hedges inventory exposure, enhancing resilience to raw-material swings and demand patchiness over medium term.

Negative Factors

Declining revenue and margins

Sustained declines in top-line and margin metrics reduce internal cash generation and competitiveness. Over several months this pressures reinvestment, makes it harder to fund working capital, and indicates potential loss of pricing power or cost-structure deterioration that must be fixed.

Weak cash generation

Negative operating cash flow and falling free cash flow materially limit the firm's ability to self-fund capex, repay debt, or cushion cyclical downturns. This structural cash weakness raises reliance on external financing and constrains strategic initiatives over the next several quarters.

Rising leverage and lower returns

An increasing debt load alongside declining ROE signals deteriorating capital efficiency and higher financial risk. Persisting for months, this combination can raise funding costs, limit strategic flexibility, and compress shareholder returns absent operational improvement or deleveraging.

Fairchem Organics Ltd Business Overview & Revenue Model

Company Description

Fairchem Organics Limited manufactures and sells specialty oleo chemicals and intermediate nutraceuticals in India, East Asia, the Middle East, North America, and South America. It provides nutraceuticals comprising natural and mixed tocopherol and sterol concentrates; and oleo chemicals, such as dimer, monobasic, linoleic, monomer, palmitic, and distilled fatty acid products, as well as residues. The company was incorporated in 2019 and is based in Ahmedabad, India.

How the Company Makes Money

Fairchem Organics Ltd generates revenue through the sale of its specialty chemicals and organic products to various sectors including pharmaceuticals, agrochemicals, and personal care industries. The company's revenue model is primarily based on direct sales to manufacturers and distributors, often through long-term contracts that ensure a steady stream of income. Key revenue streams include bulk orders from industrial clients, custom synthesis services, and collaborations with other chemical companies for joint development projects. Additionally, Fairchem may benefit from strategic partnerships with research institutions and other organizations, which can enhance its product offerings and expand its market reach, ultimately 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 returns are concerns. Operational inefficiencies and cash flow issues need addressing.

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 2022	Mar 2021
Income Statement
Total Revenue	5.04B	5.38B	6.21B	6.47B	6.42B	3.96B
Gross Profit	619.37M	666.52M	1.54B	1.56B	1.78B	1.25B
EBITDA	274.63M	441.21M	681.10M	729.68M	1.05B	688.05M
Net Income	92.96M	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	82.00K	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	-3.02B	997.98M	443.77M	831.48M	919.26M	898.68M
Stockholders Equity	3.02B	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: 766.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 766.1 is above the 20-day moving average (MA) of 617.14, above the 50-day MA of 662.54, and below the 200-day MA of 778.85, indicating a bearish trend. The MACD of -21.40 indicates Positive momentum. The RSI at 40.22 is Neutral, neither overbought nor oversold. The STOCH value of 21.21 is Neutral, 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	63 Neutral	₹7.69B	10.88	―	0.38%	13.01%	32.44%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAYAGROGN	60 Neutral	₹8.39B	11.82	―	1.23%	0.69%	-7.54%
AMNPLST	60 Neutral	₹8.31B	24.45	―	0.26%	-4.07%	-12.36%
MANALIPETC	49 Neutral	₹9.24B	8.27	―	0.82%	-2.41%	178.19%
FAIRCHEMOR	47 Neutral	₹7.43B	314.67	―	1.07%	-22.10%	-85.56%
VALIANTORG	46 Neutral	₹6.28B	28.67	―	―	16.43%	―