Faze Three Ltd. (FAZE3Q) AI Stock Analysis

• Market Cap: ₹11.60B
• Dividend Yield: N/A
• Average Volume (3M): 16.69K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.71
• Revenue Growth: 33.77%
• EPS Growth: -5.83%
• Country: IN
• Employees: 2,246
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): -2.14
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ₹602.00 ▲(20.28% Upside)

Faze Three Ltd. demonstrates strong technical momentum and a solid financial position, but faces challenges with profitability margins and cash flow management. The high P/E ratio indicates potential overvaluation, which could limit upside potential. Improvements in operational efficiency and cash flow are necessary to enhance the stock's attractiveness.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective product strategies, supporting long-term business sustainability.

Equity Position

A strong equity position with manageable leverage enhances financial stability and provides a buffer against economic fluctuations.

Gross Profit Margin

High gross profit margins reflect strong pricing power and product demand, contributing to long-term profitability and competitive advantage.

Negative Factors

Profitability Margins

Declining profitability margins can strain financial performance, potentially impacting investment in growth and innovation.

Cash Flow Management

Poor cash flow management limits financial flexibility and may hinder the company's ability to fund operations and strategic initiatives.

Return on Equity

A declining ROE suggests reduced efficiency in generating profits from equity, potentially affecting investor confidence and capital allocation.

Faze Three Ltd. Business Overview & Revenue Model

Company Description

Faze Three Ltd. (FAZE3Q) is a diversified company primarily engaged in the manufacturing and distribution of home textiles and apparel. Operating in the textile sector, Faze Three specializes in producing a wide range of products including bed linens, curtains, and other soft furnishings. The company caters to both domestic and international markets, focusing on quality, innovation, and customer satisfaction in its offerings.

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

Faze Three Ltd. has demonstrated strong revenue growth and maintains a solid equity position. However, it faces pressures in profitability margins and cash flow management. The company's leverage is under control, but declining free cash flow and profitability margins may pose risks if not addressed.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Neutral
• Last Price: 500.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Neutral. The current price of 500.5 is below the 20-day moving average (MA) of 515.22, below the 50-day MA of 501.36, and below the 200-day MA of 505.42, indicating a bullish trend. The MACD of 12.21 indicates Negative momentum. The RSI at 50.49 is Neutral, neither overbought nor oversold. The STOCH value of 53.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	70 Outperform	₹11.60B	25.11	―	―	33.77%	-5.83%
HUHTAMAKI	66 Neutral	₹18.66B	18.74	―	0.93%	-1.59%	-75.34%
RSWM	64 Neutral	₹7.25B	-42.83	―	―	5.54%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AYMSYNTEX	52 Neutral	₹9.94B	154.92	―	―	-2.89%	-94.82%
RAJRILTD	40 Underperform	₹13.20B	36.99	―	―	22.75%	―