Faze Three Ltd. (FAZE3Q) AI Stock Analysis

• Market Cap: ₹9.07B
• Dividend Yield: N/A
• Average Volume (3M): 16.69K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 1.04
• Revenue Growth: 33.77%
• EPS Growth: -5.83%
• Country: IN
• Employees: 2,246
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• 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: 61 Neutral
• Price Target: ₹417.00 ▲(4.09% Upside)

The score is driven primarily by solid financial fundamentals (strong revenue growth and a healthy balance sheet), offset by meaningful cash flow weakness and margin compression. Technicals further weigh on the score due to a negative trend and MACD, while valuation is less supportive given the higher P/E and no stated dividend yield.

Positive Factors

Revenue Growth

Consistent, high single‑digit to double‑digit revenue growth reflects durable demand and expanding market penetration in apparel. Sustained top‑line expansion provides scale advantages, supports investment in product and distribution, and underpins long‑term strategic flexibility.

Gross Margin / Pricing Power

A 50%+ gross margin indicates strong product-level economics and pricing power in its apparel manufacturing base. This structural margin buffer can absorb cost volatility and supports durable profitability upside if the company maintains product mix and supply efficiencies over the medium term.

Balance Sheet Strength

Manageable leverage and a high equity ratio provide financial resilience versus cyclical retail pressures. This capital structure supports inventory funding, capex and strategic investments without immediate need for dilutive financing, preserving operating flexibility across business cycles.

Negative Factors

Free Cash Flow Weakness

Material FCF deterioration and low cash conversion signal structural working capital or capex pressure that weakens internal funding for growth. Persistently negative FCF reduces flexibility to reinvest, pay down debt, or return capital, forcing reliance on external financing until conversion improves.

Margin Compression

A sharp decline in operating margins points to rising costs, margin mix shifts, or pricing pressure. If structural, this erosion undermines operating cash generation and reinvestment capacity, making it harder to sustain profitable growth and to compete on both price and quality over the medium term.

Declining Return on Equity

Falling ROE indicates lower effectiveness in converting equity into profit, reflecting reduced profitability or capital inefficiencies. Continued decline would pressure shareholder returns and could constrain future capital allocation, investor confidence, and long‑term value creation.

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 gross margin (50.36%) support the business, while profitability weakened (EBIT margin down to 8.03%, net margin down to 5.89%) and free cash flow deteriorated materially (-803.5m in 2025) with weak cash conversion (operating cash flow to net income ratio of 0.30). Balance sheet leverage remains manageable (debt-to-equity 0.46; equity ratio 61.19%).

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: Negative
• Last Price: 400.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 400.6 is above the 20-day moving average (MA) of 379.71, below the 50-day MA of 434.80, and below the 200-day MA of 515.75, indicating a bearish trend. The MACD of -15.57 indicates Negative momentum. The RSI at 42.86 is Neutral, neither overbought nor oversold. The STOCH value of 41.90 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
HUHTAMAKI	66 Neutral	₹13.56B	13.62	―	0.95%	-1.59%	-75.34%
RSWM	64 Neutral	₹6.62B	82.11	―	―	5.54%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
FAZE3Q	61 Neutral	₹9.07B	26.77	―	―	33.77%	-5.83%
AYMSYNTEX	52 Neutral	₹9.39B	635.80	―	―	-2.89%	-94.82%
RAJRILTD	40 Underperform	₹11.16B	31.26	―	―	22.75%	―