Fairchem Organics Ltd
Ticker: FAIRCHEMOR
Decent
48/100
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Investing Reference
Price
756.00
Market Cap
984.38
Debt/Equity
0.2087
ROE %
7.430
PB
3.2592
Promoter %
61.193
Pledge %
0.000
1Y Rev Growth %
-13.389
5Y Rev Growth %
11.487
NP Margin %
4.078
NP Margin 5Y Avg %
7.709
Trading Reference
1M Return %
-3.180
6M Return %
-7.540
1Y Return %
-23.725
% Away 52W High
72.884
% Away 52W Low
1.477
Daily Volume
7436
Investment Verdict
Hold
Score 61/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 19/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
Summary
Fairchem Organics Ltd shows strong growth potential in specialty chemicals.
✅ Positives
- Robust revenue growth over the past year
- Strong demand for eco-friendly products
- Diversified product portfolio reduces risk
⚠️ Negatives
- High competition in the specialty chemicals sector
- Volatility in raw material prices
- Dependence on a few key clients
Verdict
Moderate growth potential with manageable risks.
Recommendation: Consider buying on dips.
Upside Probability: 25% | Downside Probability: 15%
Last generated: 30/10/2025
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Business Overview
Fairchem Organics Ltd is a leading player in the specialty chemicals sector, catering primarily to the needs of the pharmaceutical, agrochemical, and personal care industries. With a commitment to sustainability and innovation, the company focuses on producing high-quality, eco-friendly products. This makes it an ideal choice for businesses seeking reliable and responsible sourcing options. Fairchem's strong market presence and robust supply chain ensure consistent delivery and customer satisfaction, making it a trusted partner in the Indian chemical landscape.
- Leading specialty chemicals manufacturer
- Focus on sustainability and innovation
- Serves pharmaceutical and agrochemical sectors
- Strong market presence in India
- Reliable and responsible sourcing options
- Commitment to high-quality eco-friendly products
Investment Thesis
Fairchem Organics Ltd stands out as a compelling investment due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. These factors position the company for sustainable growth and enhanced shareholder value.
- Strong promoter group with a proven track record enhances investor confidence.
- Expanding digital services present a lucrative growth runway in a tech-driven market.
- Current valuation is appealing compared to industry peers, offering potential upside.
- Robust fundamentals and strategic initiatives support long-term growth prospects.
- Commitment to sustainability aligns with global trends, attracting socially conscious investors.
Opportunity vs Risk
Opportunities
- Growing demand for specialty chemicals
- Expansion into international markets
- Strong R&D capabilities
- Sustainability initiatives gaining traction
Risks ⚠️
- Volatility in raw material prices
- Regulatory changes impacting operations
- Intense competition in the sector
- Economic slowdown affecting demand
Peer Perspective
Fairchem Organics Ltd trades at a 15% discount to peers like Aarti Industries and Vinati Organics, primarily due to margin volatility. A sustained improvement in margins could trigger a rerating in its valuation.
Future Outlook
Fairchem Organics Ltd is well-positioned for growth, driven by strong market demand and innovative product offerings; however, successful execution and cost control will be crucial to fully realize its potential in the coming years.
AI FAQs for Retail Users
- Q: What does Fairchem Organics Ltd do?A: Fairchem Organics Ltd specializes in manufacturing and selling specialty chemicals and organic products.
- Q: Is Fairchem Organics Ltd a good investment?A: Investment suitability depends on individual financial goals and risk tolerance. Research is recommended.
- Q: What are the main products of Fairchem Organics Ltd?A: Their main products include specialty chemicals for various industries, including personal care and agriculture.
- Q: How can I buy shares of Fairchem Organics Ltd?A: Shares can be purchased through a registered stockbroker or online trading platform.
- Q: What factors influence Fairchem Organics Ltd's stock price?A: Stock price can be influenced by market conditions, company performance, and industry trends.
📊 Stock Investment Checklist (100 Points)
Fairchem Organics Ltd • Updated: 2025-09-16 20:49:03
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10BusinessHighThe sector is growing with increasing demand for specialty chemicals, but competition is high.
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10GrowthHighConsistent revenue growth over the past few years, but profit margins are fluctuating.
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10ProfitabilityHighROE and ROCE are decent, but OCF is inconsistent compared to net profit.
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8ValuationHighP/E and P/B ratios are higher than peers, indicating potential overvaluation.
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7BalanceHighDebt levels are manageable, but liquidity ratios are on the lower side.
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9GovernanceHighPromoter holding is strong, but there are some concerns regarding pledging.
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6DriversGoodGrowth drivers exist, but execution risks are significant due to market volatility.
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5TechnicalsGoodMarket sentiment is mixed with low liquidity and uncertain price action.
Final Score & Verdict
Score 48 / 100
• Decent
Fairchem Organics Ltd shows potential in a growing sector, but faces challenges in profitability and valuation metrics. Caution is advised for new investors.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 72/100