Past 10 year's financial track record analysis by Moneyworks4me indicates that Fairchem Organics Ltd is a average quality company.
The key valuation ratios of Fairchem Organics Ltd's currently when compared to its past seem to suggest it is in the Undervalued zone.
The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Fairchem Organics Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
| Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|
| ROCE % ⓘ | 25.3% | 29.9% | 37.8% | 21.5% | 19.4% | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | ||||||
| Sales ⓘ | 306 | 397 | 643 | 648 | 621 | 612 |
| Sales YoY Gr. | - | 29.4% | 62.2% | 0.8% | -4.1% | - |
| Adj EPS ⓘ | 0 | 32.6 | 52.1 | 33.3 | 30.5 | 32.2 |
| YoY Gr. | - | NA | 59.6% | -36% | -8.4% | - |
| BVPS (₹) ⓘ | 0 | 129.6 | 178.3 | 199.1 | 222.7 | 228.8 |
| Adj Net Profit ⓘ | 34.9 | 42.5 | 67.8 | 43.4 | 39.8 | 42 |
| Cash Flow from Ops. ⓘ | 31.2 | 39.6 | 40.5 | 49.6 | 74.5 | - |
| Debt/CF from Ops. ⓘ | 2.1 | 1.4 | 1.5 | 1 | 0.1 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | NA | NA | 16.2% | -4.1% | ||||
| Adj EPS ⓘ | NA | NA | -2.2% | -8.4% | ||||
| BVPSⓘ | NA | NA | 19.8% | 11.8% | ||||
| Share Price | - | - | -9.8% | -1.6% | ||||
Performance Ratio Colour Code Guide ⓘ
| Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|
| Return on Equity % ⓘ | 27.6 | 28.7 | 33.8 | 17.7 | 14.5 | 14.3 |
| Op. Profit Mgn % ⓘ | 15.9 | 17.4 | 16.3 | 11.2 | 10.8 | 11.3 |
| Net Profit Mgn % ⓘ | 11.4 | 10.7 | 10.5 | 6.7 | 6.4 | 6.9 |
| Debt to Equity ⓘ | 0.6 | 0.3 | 0.3 | 0.2 | 0 | 0 |
| Working Cap Days ⓘ | 0 | 85 | 69 | 82 | 85 | 46 |
| Cash Conv. Cycle ⓘ | 0 | 66 | 57 | 71 | 71 | 31 |
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%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 32.2 | - |
| TTM Sales (₹ Cr.) | 612 | - |
| BVPS (₹.) ⓘ | 228.8 | - |
| Reserves (₹ Cr.) ⓘ | 285 | - |
| P/BV ⓘ | 5.25 | - |
| PE ⓘ | 37.27 | - |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 775.55 / 1552.00 |
| All Time Low / High (₹) | 511.00 / 2448.90 |
| Market Cap (₹ Cr.) | 1,564 |
| Equity (₹ Cr.) | 13 |
| Face Value (₹) | 10 |
| Industry PE ⓘ | 57.3 |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| PARTICULARS | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|
| Sales | 306 | 397 | 643 | 648 | 621 |
| Operating Expenses ⓘ | 258 | 328 | 538 | 576 | 554 |
| Manufacturing Costs | 35 | 35 | 58 | 63 | 66 |
| Material Costs | 199 | 259 | 448 | 475 | 446 |
| Employee Cost | 14 | 16 | 18 | 20 | 22 |
| Other Costs ⓘ | 11 | 17 | 15 | 17 | 20 |
| Operating Profit ⓘ | 48 | 69 | 105 | 72 | 67 |
| Operating Profit Margin (%) | 15.8% | 17.4% | 16.3% | 11.2% | 10.8% |
| Other Income ⓘ | 7 | 0 | 0 | 1 | 1 |
| Interest ⓘ | 7 | 7 | 7 | 6 | 4 |
| Depreciation ⓘ | 6 | 7 | 7 | 8 | 9 |
| Exceptional Items ⓘ | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax ⓘ | 42 | 56 | 91 | 59 | 55 |
| Tax ⓘ | 8 | 13 | 23 | 15 | 14 |
| Profit After Tax | 35 | 42 | 68 | 44 | 41 |
| PAT Margin (%) | 11.3% | 10.7% | 10.6% | 6.7% | 6.5% |
| Adjusted EPS (₹) | 0.0 | 32.6 | 52.2 | 33.4 | 31.1 |
| Dividend Payout Ratio (%) | 0% | 11% | 25% | 22% | 24% |
| PARTICULARS | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Shareholders Fund | 114 | 169 | 232 | 259 | 290 | |||||
| Share Capital ⓘ | 0 | 13 | 13 | 13 | 13 | |||||
| Reserves ⓘ | 114 | 156 | 219 | 246 | 277 | |||||
| Minority Interest | 0 | 0 | 0 | 0 | 0 | |||||
| Debt | 61 | 48 | 59 | 50 | 7 | |||||
| Long Term Debt | 16 | 26 | 10 | 0 | 0 | |||||
| Short Term Debt | 44 | 22 | 49 | 50 | 7 | |||||
| Trade Payables | 6 | 11 | 9 | 11 | 13 | |||||
| Others Liabilities ⓘ | 38 | 31 | 24 | 22 | 24 | |||||
| Total Liabilities ⓘ | 219 | 259 | 324 | 342 | 334 | |||||
Fixed Assets | ||||||||||
| Gross Block | 147 | 153 | 174 | 197 | 242 | |||||
| Accumulated Depreciation | 20 | 27 | 34 | 41 | 50 | |||||
| Net Fixed Assetsⓘ | 126 | 126 | 141 | 156 | 191 | |||||
| CWIP ⓘ | 9 | 29 | 42 | 35 | 6 | |||||
| Investmentsⓘ | 0 | 0 | 0 | 0 | 0 | |||||
| Inventories | 35 | 45 | 70 | 80 | 70 | |||||
| Trade Receivables | 38 | 47 | 62 | 63 | 57 | |||||
| Cash Equivalents | 0 | 0 | 0 | 0 | 0 | |||||
| Others Assetsⓘ | 10 | 11 | 9 | 9 | 10 | |||||
| Total Assets ⓘ | 219 | 259 | 324 | 342 | 334 | |||||
| PARTICULARS | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | 31 | 40 | 40 | 50 | 74 |
| PBT ⓘ | 42 | 56 | 91 | 59 | 55 |
| Adjustment ⓘ | 6 | 13 | 14 | 14 | 13 |
| Changes in Working Capital ⓘ | -9 | -16 | -42 | -10 | 20 |
| 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 | 0 | 0 | 0 | 0 | 0 |
| Others ⓘ | 6 | 0 | 0 | 0 | 0 |
| Cash Flow From Financing Activityⓘ | -7 | -17 | -6 | -35 | -57 |
| Net Proceeds from Shares ⓘ | 0 | 0 | 0 | 0 | 0 |
| Net Proceeds from Borrowing ⓘ | 6 | 12 | -22 | -13 | 0 |
| Interest Paid ⓘ | -7 | -7 | -7 | -6 | -4 |
| Dividend Paid ⓘ | -10 | 0 | -5 | -17 | -10 |
| Others ⓘ | 4 | -22 | 27 | 1 | -43 |
| Net Cash Flow ⓘ | 0 | 0 | 0 | 0 | 0 |
| PARTICULARS | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Ratios | ||||||||||
| ROE (%) | 30.52 | 30.08 | 33.88 | 17.7 | 14.75 | |||||
| ROCE (%) | 25.34 | 29.86 | 37.75 | 21.49 | 19.4 | |||||
| Asset Turnover Ratio | 1.4 | 1.66 | 2.21 | 1.94 | 1.84 | |||||
| PAT to CFO Conversion(x) | 0.89 | 0.95 | 0.59 | 1.14 | 1.8 | Working Capital Days | ||||
| Receivable Days | 45 | 39 | 31 | 35 | 35 | |||||
| Inventory Days | 42 | 37 | 33 | 42 | 44 | |||||
| Payable Days | 12 | 12 | 8 | 8 | 10 | |||||
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
Nutraceuticals
Oleochemicals
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