Fairchem Organics Ltd - Stock Valuation and Financial Performance

BSE: 543252 | NSE: FAIRCHEMOR | Chemicals | Small Cap

Fairchem Organics Share Price

1,278.30 14.35 1.14%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on Fairchem Organics

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Fairchem Organics stock performance -

mw4me loader
P/E Ratio (SA):
41.00
Market Cap:
1,664.5 Cr.
52-wk low:
999
52-wk high:
1,525.3

Is Fairchem Organics Ltd an attractive stock to invest in?

1. Is Fairchem Organics Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Fairchem Organics Ltd is a average quality company.

2. Is Fairchem Organics Ltd undervalued or overvalued?

The key valuation ratios of Fairchem Organics Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Fairchem Organics Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Fairchem Organics Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Fairchem Organics:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Fairchem Organics Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 20.4%22.6%27.9%15.8%-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 306397643648611
Sales YoY Gr.-29.4%62.2%0.8%-
Adj EPS 032.652.133.331.2
YoY Gr.-NA59.6%-36%-
BVPS (₹) 0129.6178.3199.1213.7
Adj Net
Profit
34.942.567.843.441
Cash Flow from Ops. 31.239.640.549.6-
Debt/CF from Ops. 2.11.41.51-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales NANA28.4%0.8%
Adj EPS NANANA-36%
BVPSNANANA11.7%
Share Price - - 18.3% 19.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
27.628.733.817.715.1
Op. Profit
Mgn %
15.917.416.311.211
Net Profit
Mgn %
11.410.710.56.76.6
Debt to
Equity
0.60.30.30.2-
Working Cap
Days
085698241
Cash Conv.
Cycle
066577124

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 28.35%

Return on Equity has declined versus last 3 years average to 15.10%

Net Profit has been subdued in last 3 years 0.00%

Sales growth is not so good in last 4 quarters at -2.15%

Latest Financials - Fairchem Organics Ltd.

Standalone Consolidated
TTM EPS (₹) 31.2 -
TTM Sales (₹ Cr.) 611 -
BVPS (₹.) 213.7 -
Reserves (₹ Cr.) 265 -
P/BV 5.98 -
PE 41.00 -
From the Market
52 Week Low / High (₹) 999.00 / 1525.30
All Time Low / High (₹) 511.00 / 2448.90
Market Cap (₹ Cr.) 1,664
Equity (₹ Cr.) 13
Face Value (₹) 10
Industry PE 49.3

Management X-Ray of Fairchem Organics:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Fairchem Organics

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'20Mar'21Mar'22Mar'23
Sales306397643648
Operating Expenses 258328538576
Manufacturing Costs35355863
Material Costs199259448475
Employee Cost 14161820
Other Costs 11171517
Operating Profit 486910572
Operating Profit Margin (%) 15.8%17.4%16.3%11.2%
Other Income 7001
Interest 7776
Depreciation 6778
Exceptional Items 0000
Profit Before Tax 42569159
Tax 8132315
Profit After Tax 35426844
PAT Margin (%) 11.3%10.7%10.6%6.7%
Adjusted EPS (₹)0.032.652.233.4
Dividend Payout Ratio (%)0%11%25%22%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 114169232259
Share Capital 0131313
Reserves 114156219246
Minority Interest0000
Debt61485950
Long Term Debt1626100
Short Term Debt44224950
Trade Payables611911
Others Liabilities 38312422
Total Liabilities 219259324342

Fixed Assets

Gross Block147153174197
Accumulated Depreciation20273441
Net Fixed Assets126126141156
CWIP 9294235
Investments 0000
Inventories35457080
Trade Receivables38476263
Cash Equivalents 0000
Others Assets101199
Total Assets 219259324342

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 31404050
PBT 42569159
Adjustment 6131414
Changes in Working Capital -9-16-42-10
Tax Paid -9-13-22-14
Cash Flow From Investing Activity -24-23-34-14
Capex -30-23-34-14
Net Investments 0000
Others 6000
Cash Flow From Financing Activity -7-17-6-35
Net Proceeds from Shares 0000
Net Proceeds from Borrowing 612-22-13
Interest Paid -7-7-7-6
Dividend Paid -100-5-17
Others 4-22271
Net Cash Flow 0000
PARTICULARSMar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)30.5230.0833.8817.7
ROCE (%)25.3429.8637.7521.49
Asset Turnover Ratio1.41.662.211.94
PAT to CFO Conversion(x)0.890.950.591.14
Working Capital Days
Receivable Days45393135
Inventory Days42373342
Payable Days121288

Fairchem Organics Ltd Stock News

Fairchem Organics Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Fairchem Organics on 12-Apr-2024 16:59 is ₹1,278.3.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 16:59 the market cap of Fairchem Organics stood at ₹1,664.5.
The latest P/E ratio of Fairchem Organics as of 12-Apr-2024 16:59 is 41.00.
The latest P/B ratio of Fairchem Organics as of 12-Apr-2024 16:59 is 5.98.
The 52-week high of Fairchem Organics is ₹1,525.3 and the 52-week low is ₹999.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Fairchem Organics is ₹611.4 ( Cr.) .

About Fairchem Organics Ltd

Fairchem Organics Limited (the Company) was incorporated on March 27, 2019. The genesis of creation of a dedicated platform in the form of the company is to capitalise on the opportunities in the Indian speciality chemical structure. Fairchem has perfected the business model of procuring waste generated in the oil refining mills and then using state of the art process equipment to isolate and purify a variety of components from the waste. Some of these components are used as building blocks to make further value-added products like Dimer acid.

Privi, which is a fully owned subsidiary of Fairchem, manufacturers aroma chemicals, which are blended together by formulators to impart fragrance in day to day products like soaps, detergents, shampoos, and fine fragrances. A significant portion of Privi’s aroma chemicals are made from the waste generated in the Pulp & Paper mills - mostly located in Europe, the US and Canada. 70% of Privi’s products are exported across the globe.

Both companies are working on renewable sources of raw materials i.e. waste from another industry and convert that into value added products.

Business area of the company

Fairchem is India’s largest manufacturer of Dimer acid used in many consumer products including paints. Fairchem also processes Tocopherol which is used in formulating Natural Vitamin-E.

Products

Aroma chemicals

  • Alpha Damascone
  • Alpha Ionone
  • Alpha Ionone
  • Alpha Ionone 950
  • Amber Fleur
  • Amber Gamma
  • Beta Ionone
  • Citronellal
  • Citronellyl Acetate
  • Citronellyl Nitrile
  • Delta Damascone
  • Dihydromyrcenol
  • Florascone
  • Gamma Methyl Ionone
  • Gammanolene 700
  • Geranyl Acetate
  • Indian Sandal Core
  • Ionone 100%
  • Methyl Ionone
  • Mugenol
  • Nimberol
  • OTBCHA
  • PTBCHA
  • Sandal Fleur
  • Sandal Fleur Laevo
  • Sandal Touch
  • Tetrahydroflorol
  • Tetrahydrogeraniol
  • Tetrahydrogeranyl Acetate
  • Tetrahydromyrcenol
  • Timber Forte
  • Timber Touch
  • Violetone Coeur

Nutraceuticals

  • Natural Concentrated Tocopherols
  • Natural Concentrated Sterols

Oleochemicals

  • Dimer Acid (HIPOL 100)
  • Dimer Acid (HIPOL 800)
  • Distilled Fatty Acid
  • Distilled Fatty Acid (Fract.)
  • Distilled Fatty Acid (Soya Fatty Acid)
  • Linoleic 50
  • Linoleic Acid
  • Monobasic Acid (HIFAC 101)
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