Faze Three Ltd. (FAZE3Q) AI Stock Analysis

• Market Cap: ₹11.03B
• Dividend Yield: N/A
• Average Volume (3M): 16.69K
• Price to Earnings (P/E): 39.5
• Beta (1Y): 1.17
• Revenue Growth: 33.77%
• EPS Growth: -5.83%
• Country: IN
• Employees: 2,246
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.63
• Shares Outstanding: 24,319,000
• 10 Day Avg. Volume: 4,825
• 30 Day Avg. Volume: 16,686
• PEG Ratio: -1.68
• Price to Book (P/B): 2.06
• Price to Sales (P/S): 1.25
• P/FCF Ratio: -10.75
• 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: 68 Neutral
• Price Target: ₹494.00 ▲(23.32% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by solid financial positioning and strong revenue growth, supported by bullish price trends (above key moving averages and positive MACD). The main constraints are weak cash flow conversion with sharply negative free cash flow and a high P/E valuation, alongside stretched momentum signals (high RSI/Stoch) that raise near-term risk.

Positive Factors

Revenue Growth

Sustained ~28% year-over-year revenue growth demonstrates durable demand and expanding market penetration in apparel manufacturing. Over a 2-6 month horizon this supports scaling benefits, stronger bargaining power with suppliers, and the ability to invest in distribution and product lines.

Strong Gross Margin

A gross margin above 50% indicates structural pricing power and efficient production control in its product mix. This provides lasting headroom to absorb SG&A and input cost volatility, supporting sustained operating profitability if revenue growth persists.

Healthy Balance Sheet

Manageable leverage and a strong equity ratio provide financial flexibility for capex, inventory cycles and strategic initiatives. Over months this reduces refinancing risk and preserves capacity to fund growth or weather cyclical softness without eroding core operations.

Negative Factors

Weak Cash Flow Conversion

A sharp decline in free cash flow and an OCF-to-net-income ratio of 0.30 show earnings are not converting to cash. Structurally weak cash conversion limits reinvestment, increases reliance on external financing, and constrains sustainable capital allocation decisions.

Falling Profitability Margins

Material margin compression year-over-year suggests rising costs or adverse mix which reduces operating leverage. Persistently lower EBIT and net margins erode returns on incremental revenue and weaken the firm's ability to fund growth or cushion demand shocks.

Declining Return on Equity

A falling ROE signals reduced efficiency in converting equity into profits, reflecting margin pressure or capital intensity. If sustained, it pressures shareholder returns and may necessitate strategic changes to improve capital deployment and long-term profitability.

Faze Three Ltd. Business Overview & Revenue Model

Company Description

Faze Three Limited manufactures and sells home textile products and auto fabrics in India. The company offers bathmats, rugs, blankets, throws, cushions, durries, carpets, cushion covers, curtains, table covers, chairpads, pillows, mattresses, mattresses pads, fiber fillings, floor and table coverings, bed spreads, aprons, mittens, pot holders, and kitchen towels. It also provides face masks; automotive seat covers; water proof dog beds, dog bed covers, and pet collars; and outdoor ranges, such as outdoor furniture covers, awning fabrics, canopies, lounge cushions, and fade resistant and water repellent outdoor cushions. In addition, the company operates an interior and lifestyle store under the AA Living's brand, as well as operates an e-commerce platform. It serves retailers, hotel chains, spas and resorts, and cruses and liners. The company also exports its products to Europe, the United States, and the United Kingdom. Faze Three Limited was founded in 1982 and is based in Mumbai, India.

How the Company Makes Money

Faze Three Ltd. generates revenue through multiple streams, primarily from the sale of its textile products to retailers and wholesalers. The company has established a strong presence in the home textile sector, allowing it to tap into various market segments. Key revenue streams include direct sales from its product lines, collaborations with major retailers, and export sales to international markets. Additionally, Faze Three may benefit from strategic partnerships with designers and brands, which can enhance its market reach and create exclusive product lines, thereby contributing to its overall earnings.

Faze Three Ltd. Financial Statement Overview

Summary

Strong revenue growth (+28.01% from 2024 to 2025) and a solid balance sheet (debt-to-equity 0.46; equity ratio 61.19%) support the score. Offsetting this, profitability weakened (EBIT margin down to 8.03%; net margin down to 5.89%) and cash flow is a key risk with free cash flow deteriorating to -803.5M and low operating cash conversion (OCF to net income 0.30).

Income Statement

Faze Three Ltd. has demonstrated consistent revenue growth, with a notable 28.01% increase in revenue from 2024 to 2025. However, profitability margins have shown signs of pressure; the EBIT margin decreased from 15.02% in 2024 to 8.03% in 2025, and the net profit margin fell from 8.64% to 5.89% during the same period. Despite these challenges, the company maintains a solid gross profit margin of 50.36% in 2025, indicating strong product demand and pricing power in its industry.

Balance Sheet

The company has a healthy equity position with a debt-to-equity ratio of 0.46 in 2025, indicating manageable leverage. The equity ratio stands at 61.19%, suggesting robust asset backing with equity. While the return on equity (ROE) has decreased from 12.24% in 2024 to 9.68% in 2025, it is still indicative of efficient use of equity capital.

Cash Flow

Faze Three Ltd. has faced challenges in cash flow management, with a significant decline in free cash flow from -232.3 million in 2024 to -803.5 million in 2025. The operating cash flow to net income ratio of 0.30 indicates that operating cash generation is not keeping pace with reported earnings. The substantial capital expenditures may weigh heavily on cash reserves and financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.53B	6.90B	5.65B	5.31B	4.77B	3.06B
Gross Profit	3.82B	3.48B	1.05B	2.45B	2.10B	1.36B
EBITDA	1.02B	922.30M	943.00M	999.30M	867.20M	498.50M
Net Income	461.60M	406.60M	465.90M	583.00M	510.80M	249.30M
Balance Sheet
Total Assets	0.00	6.86B	5.93B	5.47B	4.88B	3.57B
Cash, Cash Equivalents and Short-Term Investments	195.80M	195.80M	825.60M	1.16B	666.30M	424.40M
Total Debt	0.00	1.92B	1.70B	1.74B	1.67B	1.03B
Total Liabilities	-4.20B	2.66B	2.13B	2.12B	2.09B	1.30B
Stockholders Equity	4.20B	4.20B	3.81B	3.35B	2.78B	2.26B
Cash Flow
Free Cash Flow	0.00	-803.50M	-232.30M	553.20M	-391.70M	-52.40M
Operating Cash Flow	0.00	122.70M	370.10M	1.10B	-65.30M	89.40M
Investing Cash Flow	0.00	-399.70M	-454.50M	-438.30M	-508.20M	-526.20M
Financing Cash Flow	0.00	35.50M	-187.60M	-60.40M	608.40M	308.60M

Faze Three Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 400.60
• 50DMA: Positive
• 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:FAZE3Q, the sentiment is Negative. The current price of 400.6 is below the 20-day moving average (MA) of 523.01, below the 50-day MA of 448.84, and below the 200-day MA of 514.72, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 42.88 is Neutral, neither overbought nor oversold. The STOCH value of 9.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:FAZE3Q.

Faze Three Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAZE3Q	68 Neutral	₹11.03B	39.46	―	―	33.77%	-5.83%
RSWM	66 Neutral	₹6.85B	73.65	―	―	5.54%	―
HUHTAMAKI	64 Neutral	₹12.87B	13.53	―	0.95%	-1.59%	-75.34%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AYMSYNTEX	60 Neutral	₹11.60B	178.44	―	―	-2.89%	-94.82%
RAJRILTD	40 Underperform	₹12.49B	52.64	―	―	22.75%	―

Faze Three Ltd. Corporate Events

Faze Three Says No Undisclosed Events Behind Recent Share Price Volatility

Faze Three Limited has responded to a query from the National Stock Exchange of India regarding significant recent price movement in its shares, stating that it has consistently and promptly disclosed all events and information that could materially affect its operations or performance in line with regulatory requirements. The company further clarified that there are currently no undisclosed events or material information pending announcement, signaling that the share price volatility is not driven by any non-public company-specific developments and aiming to reassure the market and safeguard investor interests.