Faze Three Ltd. (FAZE3Q) AI Stock Analysis

• Market Cap: ₹11.36B
• Dividend Yield: N/A
• Average Volume (3M): 16.69K
• Price to Earnings (P/E): 39.5
• Beta (1Y): 1.16
• 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: ₹487.00 ▲(21.57% 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

A ~28% year-over-year revenue increase shows durable demand for Faze Three's apparel and supports scale economics. Sustained top-line expansion provides room to invest in distribution, product development, and working capital, underpinning long-term business resilience if margins recover.

Balance Sheet Strength

Manageable leverage and a 61% equity ratio indicate a conservative capital structure and strong asset backing. This financial flexibility supports funding organic growth or absorbing cyclical shocks without immediate reliance on external financing, preserving strategic optionality over the medium term.

High Gross Margin

A 50%+ gross margin signals significant product-level pricing power and favorable cost structure at the gross profit line. Sustained gross margins provide a buffer for absorbing SG&A or supply-cost pressures and create long-term capacity to restore operating profitability through efficiency gains.

Negative Factors

Free Cash Flow Deterioration

A sharp swing to deeply negative free cash flow reflects heavy capex or working capital build and materially weakens financial flexibility. Persistently negative FCF can force reliance on external financing, constrain strategic investment, and increase vulnerability to demand downturns over the coming months.

Margin Compression

Significant erosion in operating and net margins reduces internal cash generation and returns on invested capital. If margin pressure is structural—driven by higher input costs, pricing pressure, or SG&A—it can limit reinvestment and impair long-term profitability even with strong revenue growth.

Weak Cash Conversion

OCF covering only 30% of reported net income signals poor earnings quality and cash conversion. Weak conversion makes earnings less reliable for debt service and capex funding, heightening liquidity risk and limiting the firm's ability to self-fund growth or weather unexpected shocks.

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

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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: Neutral

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 511.48, below the 50-day MA of 449.46, and below the 200-day MA of 511.96, indicating a neutral trend. The MACD of -5.33 indicates Positive momentum. The RSI at 47.14 is Neutral, neither overbought nor oversold. The STOCH value of 32.56 is Neutral, 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	₹11.36B	39.46	―	―	33.77%	-5.83%
RSWM	66 Neutral	₹6.86B	73.65	―	―	5.54%	―
HUHTAMAKI	64 Neutral	₹13.14B	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	₹11.33B	178.44	―	―	-2.89%	-94.82%
RAJRILTD	40 Underperform	₹12.67B	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.