Fairchem Organics

₹1391.4 -5.5 | 0.4%

WEBSITE BSE:543252 NSE : FAIRCHEMOR 10 May, 16:01

Market Cap ₹1812 Cr.

Stock P/E 44.6

P/B 6.5

Current Price ₹1391.4

Book Value ₹ 213.7

Face Value 10

52W High ₹1525.3

Dividend Yield 0.54%

52W Low ₹ 999

Edit Ratio

Fairchem Organics Research see more...

Fairchem Organics- A high growth niche chemical play with strong promoter pedigree

Overview Inc. Year: 2019Industry: Chemicals

Fairchem Organics Ltd manufactures and sells speciality oleo chemicals and intermediate nutraceuticals in India. It also offers nutraceuticals comprising combined tocopherol and sterol concentrate; and oleo chemical compounds, which include dimer, linoleic, monomer, and distilled fatty acid products. The organization incorporated in 2019 and is primarily based in Ahmedabad, India.

Fairchem Organics Share Price

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Peer Comparison

Fairchem Organics Quarterly Results

#(Fig in Cr.)	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Net Sales	168	158	178	225	169	102	152	161	152	148
Other Income	0	0	0	0	0	0	0	0	0	0
Total Income	168	159	178	225	169	103	152	161	153	148
Total Expenditure	136	137	159	185	159	99	133	149	135	128
Operating Profit	32	21	19	40	9	4	19	12	17	20
Interest	2	2	2	2	2	1	1	1	1	1
Depreciation	2	2	2	2	2	2	2	2	2	2
Exceptional Income / Expenses	0	0	0	0	0	0	0	0	0	0
Profit Before Tax	28	18	15	36	6	1	16	8	14	17
Provision for Tax	7	5	4	9	2	0	4	2	4	4
Profit After Tax	21	13	11	27	4	1	12	6	10	12
Adjustments	-0	0	-0	0	-0	0	0	0	0	0
Profit After Adjustments	21	13	11	27	4	1	12	6	10	12
Adjusted Earnings Per Share	16	10.3	8.6	20.8	3.1	0.5	9.1	4.7	7.9	9.5

Fairchem Organics Profit & Loss

#(Fig in Cr.)	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Net Sales	306	397	643	648	613
Other Income	7	0	0	1	0
Total Income	313	397	644	649	614
Total Expenditure	258	328	538	576	545
Operating Profit	55	69	105	73	68
Interest	7	7	7	6	4
Depreciation	6	7	7	8	8
Exceptional Income / Expenses	0	0	0	0	0
Profit Before Tax	42	56	91	59	55
Provision for Tax	8	13	23	15	14
Profit After Tax	35	42	68	44	40
Adjustments	0	0	0	0	0
Profit After Adjustments	35	42	68	44	40
Adjusted Earnings Per Share	0	32.6	52.2	33.4	31.2

Growth Rates

#	1 Year	3 Year	5 Year	10 Year
Sales CAGR	1%	28%	0%	0%
Operating Profit CAGR	-30%	10%	0%	0%
PAT CAGR	-35%	8%	0%	0%

#	1 Year	3 Year	5 Year	10 Year
Share Price CAGR	15%	17%	NA%	NA%
ROE Average	18%	27%	28%	28%
ROCE Average	21%	30%	29%	29%

Fairchem Organics Balance Sheet

#(Fig in Cr.)	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Shareholder's Funds	127	169	232	259
Minority's Interest	0	0	0	0
Borrowings	16	26	10	0
Other Non-Current Liabilities	13	13	15	16
Total Current Liabilities	63	51	67	67
Total Liabilities	219	259	324	342
Fixed Assets	126	126	141	156
Other Non-Current Assets	18	34	46	38
Total Current Assets	75	98	137	149
Total Assets	219	259	324	342

Fairchem Organics Cash Flow

#(Fig in Cr.)	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Opening Cash & Cash Equivalents	0	0	0	0
Cash Flow from Operating Activities	31	40	40	50
Cash Flow from Investing Activities	-24	-23	-34	-14
Cash Flow from Financing Activities	-7	-17	-6	-35
Net Cash Inflow / Outflow	0	-0	-0	-0
Closing Cash & Cash Equivalent	0	0	0	0

Fairchem Organics Ratios

#	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Earnings Per Share (Rs)	0	32.63	52.15	33.41
CEPS(Rs)	0	37.68	57.63	39.67
DPS(Rs)	0	3.5	13	7.5
Book NAV/Share(Rs)	0	129.59	178.29	199.11
Core EBITDA Margin(%)	15.78	17.36	16.3	11.16
EBIT Margin(%)	15.99	15.77	15.25	10.01
Pre Tax Margin(%)	13.84	14.01	14.19	9.04
PAT Margin (%)	11.32	10.71	10.56	6.71
Cash Profit Margin (%)	13.27	12.37	11.67	7.97
ROA(%)	15.86	17.8	23.31	13.05
ROE(%)	30.52	30.08	33.88	17.7
ROCE(%)	25.34	29.86	37.75	21.49
Receivable days	45.11	38.95	30.92	35.15
Inventory Days	41.97	37.06	32.72	42.24
Payable days	11.78	12.2	8.14	7.53
PER(x)	0	22.94	28.85	27.36
Price/Book(x)	0	5.78	8.44	4.59
Dividend Yield(%)	0	0.47	0.86	0.82
EV/Net Sales(x)	0	2.6	3.14	1.91
EV/Core EBITDA(x)	0	14.92	19.21	16.99
Net Sales Growth(%)	0	29.39	62.19	0.76
EBIT Growth(%)	0	27.64	56.86	-33.89
PAT Growth(%)	0	22.42	59.84	-35.94
EPS Growth(%)	0	0	59.84	-35.94
Debt/Equity(x)	0.59	0.34	0.27	0.19
Current Ratio(x)	1.19	1.93	2.04	2.22
Quick Ratio(x)	0.63	1.03	1	1.03
Interest Cover(x)	7.45	8.96	14.31	10.36
Total Debt/Mcap(x)	0	0.06	0.03	0.04

Fairchem Organics Shareholding Pattern

#	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoter	58.89	58.88	58.88	58.86	58.88	58.88	58.88	58.88	58.88	58.88
FII	6.22	6.34	6.15	6.22	6.24	6.23	6.24	6.19	6.22	6.29
DII	5.32	5.38	5.46	5.48	5.4	5.19	5.23	5.34	5.28	5.26
Public	29.56	29.39	29.5	29.45	29.48	29.69	29.66	29.59	29.62	29.56
Others	0	0	0	0	0	0	0	0	0	0
Total	100	100	100	100	100	100	100	100	100	100

#	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoter	0.77	0.77	0.77	0.77	0.77	0.77	0.77	0.77	0.77	0.77
FII	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08
DII	0.07	0.07	0.07	0.07	0.07	0.07	0.07	0.07	0.07	0.07
Public	0.38	0.38	0.38	0.38	0.38	0.39	0.39	0.39	0.39	0.38
Others	0	0	0	0	0	0	0	0	0	0
Total	1.3	1.3	1.3	1.3	1.3	1.3	1.3	1.3	1.3	1.3

Pros

Company has a good return on equity (ROE) track record: 3 Years ROE 27%
Debtor days have improved from 8.14 to 7.53days.
Company has reduced debt.
Company is almost debt free.

Cons

Stock is trading at 6.5 times its book value.

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.