Fairchem Organics Ltd - Stock Valuation and Financial Performance

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

Fairchem Organics Share Price

832.50 -12.00 -1.42%
as on 13-Dec'24 15:04

DeciZen - make an informed investing decision on Fairchem Organics

Overall Rating
Bole Toh

1. Quality

2. Valuation

Undervalued

3. Price Trend

Fairchem Organics stock performance -

mw4me loader
P/E Ratio (SA):
26.21
Market Cap:
1,099.6 Cr.
52-wk low:
775.6
52-wk high:
1,552

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 Undervalued zone.

3. Is Fairchem Organics Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Fairchem Organics Ltd is likely to Fall 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'23Mar'24TTM
ROCE % 25.3%29.9%37.8%21.5%19.4%-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 306397643648621612
Sales YoY Gr.-29.4%62.2%0.8%-4.1%-
Adj EPS 032.652.133.330.532.2
YoY Gr.-NA59.6%-36%-8.4%-
BVPS (₹) 0129.6178.3199.1222.7228.8
Adj Net
Profit
34.942.567.843.439.842
Cash Flow from Ops. 31.239.640.549.674.5-
Debt/CF from Ops. 2.11.41.510.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales NANA16.2%-4.1%
Adj EPS NANA-2.2%-8.4%
BVPSNANA19.8%11.8%
Share Price - - -22.8% -28.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
27.628.733.817.714.514.3
Op. Profit
Mgn %
15.917.416.311.210.811.3
Net Profit
Mgn %
11.410.710.56.76.46.9
Debt to
Equity
0.60.30.30.200
Working Cap
Days
08569828546
Cash Conv.
Cycle
06657717131

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 16.15%

Sales growth is good in last 4 quarters at 10.98%

Return on Equity has declined versus last 3 years average to 14.30%

Net Profit has been subdued in last 3 years -2.16%

Latest Financials - Fairchem Organics Ltd.

Standalone Consolidated
TTM EPS (₹) 32.2 -
TTM Sales (₹ Cr.) 612 -
BVPS (₹.) 228.8 -
Reserves (₹ Cr.) 285 -
P/BV 3.69 -
PE 26.21 -
From the Market
52 Week Low / High (₹) 775.55 / 1552.00
All Time Low / High (₹) 511.00 / 2448.90
Market Cap (₹ Cr.) 1,100
Equity (₹ Cr.) 13
Face Value (₹) 10
Industry PE 59.8

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'23Mar'24
Sales306397643648621
Operating Expenses 258328538576554
Manufacturing Costs3535586366
Material Costs199259448475446
Employee Cost 1416182022
Other Costs 1117151720
Operating Profit 48691057267
Operating Profit Margin (%) 15.8%17.4%16.3%11.2%10.8%
Other Income 70011
Interest 77764
Depreciation 67789
Exceptional Items 00000
Profit Before Tax 4256915955
Tax 813231514
Profit After Tax 3542684441
PAT Margin (%) 11.3%10.7%10.6%6.7%6.5%
Adjusted EPS (₹)0.032.652.233.431.1
Dividend Payout Ratio (%)0%11%25%22%24%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 114169232259290
Share Capital 013131313
Reserves 114156219246277
Minority Interest00000
Debt614859507
Long Term Debt16261000
Short Term Debt442249507
Trade Payables61191113
Others Liabilities 3831242224
Total Liabilities 219259324342334

Fixed Assets

Gross Block147153174197242
Accumulated Depreciation2027344150
Net Fixed Assets126126141156191
CWIP 92942356
Investments 00000
Inventories3545708070
Trade Receivables3847626357
Cash Equivalents 00000
Others Assets10119910
Total Assets 219259324342334

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 3140405074
PBT 4256915955
Adjustment 613141413
Changes in Working Capital -9-16-42-1020
Tax Paid -9-13-22-14-13
Cash Flow From Investing Activity -24-23-34-14-18
Capex -30-23-34-14-18
Net Investments 00000
Others 60000
Cash Flow From Financing Activity -7-17-6-35-57
Net Proceeds from Shares 00000
Net Proceeds from Borrowing 612-22-130
Interest Paid -7-7-7-6-4
Dividend Paid -100-5-17-10
Others 4-22271-43
Net Cash Flow 00000
PARTICULARSMar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)30.5230.0833.8817.714.75
ROCE (%)25.3429.8637.7521.4919.4
Asset Turnover Ratio1.41.662.211.941.84
PAT to CFO Conversion(x)0.890.950.591.141.8
Working Capital Days
Receivable Days4539313535
Inventory Days4237334244
Payable Days12128810

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 13-Dec-2024 15:04 is ₹832.5.
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 13-Dec-2024 15:04 the market cap of Fairchem Organics stood at ₹1,099.6.
The latest P/E ratio of Fairchem Organics as of 13-Dec-2024 15:04 is 26.21.
The latest P/B ratio of Fairchem Organics as of 13-Dec-2024 15:04 is 3.69.
The 52-week high of Fairchem Organics is ₹1,552 and the 52-week low is ₹775.5.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Fairchem Organics is ₹611.8 ( 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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