Fairchem Organics Ltd

Fairchem Organics Ltd

₹ 946 -3.24%
13 Jun - close price
About

Fairchem Organics Limited was established in 2019, wherein Fairchem Speciality Limited (FSL) transferred the businesses of Oleo chemicals and nutraceuticals as per the scheme of demerger. Fairchem Organics is engaged in manufacturing of specialty chemicals like dimer acid, linoleic acid, mixed tocopherol concentrate and sterols concentrate, which find application in various industries like nutraceuticals, paints, printing ink, detergents, adhesives, etc.[1]

Key Points

Business Segments
1) Oleo Chemicals (95% in FY24 vs 99% in FY22): [1] [2] The company’s key oleo chemical products include Dimer Acid, Linoleic Acid, Palmitic Acid, Monomer Acid, Isostearic Acid, etc. It is one of the only manufacturers of Linoleic Acid and Dimer Acid in India. [3]

  • Market Cap 1,231 Cr.
  • Current Price 946
  • High / Low 1,553 / 747
  • Stock P/E 56.0
  • Book Value 232
  • Dividend Yield 0.79 %
  • ROCE 10.1 %
  • ROE 7.42 %
  • Face Value 10.0

Pros

  • Company has been maintaining a healthy dividend payout of 30.3%

Cons

  • The company has delivered a poor sales growth of 11.9% over past five years.
  • Company has a low return on equity of 13.0% over last 3 years.
  • Debtor days have increased from 42.4 to 58.4 days.

* 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.

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Quarterly Results

Figures in Rs. Crores

Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025
177.64 225.12 168.54 102.48 151.90 160.59 152.21 148.11 160.56 164.93 138.62 113.57 120.78
158.92 185.05 159.22 98.81 132.66 148.96 135.38 128.36 141.79 143.16 129.86 105.74 116.36
Operating Profit 18.72 40.07 9.32 3.67 19.24 11.63 16.83 19.75 18.77 21.77 8.76 7.83 4.42
OPM % 10.54% 17.80% 5.53% 3.58% 12.67% 7.24% 11.06% 13.33% 11.69% 13.20% 6.32% 6.89% 3.66%
0.03 0.28 0.00 0.27 0.17 0.15 0.46 0.25 0.28 0.24 0.38 0.48 0.24
Interest 1.67 2.41 1.62 0.92 1.32 1.35 1.30 0.97 0.62 0.81 1.02 0.93 0.91
Depreciation 1.86 1.89 2.05 2.09 2.13 2.15 2.18 2.40 2.55 2.59 2.64 2.67 2.64
Profit before tax 15.22 36.05 5.65 0.93 15.96 8.28 13.81 16.63 15.88 18.61 5.48 4.71 1.11
Tax % 26.15% 25.02% 29.20% 35.48% 25.69% 25.97% 25.56% 25.86% 25.88% 25.63% 26.82% 25.48% 46.85%
11.24 27.03 4.00 0.61 11.86 6.12 10.29 12.33 11.76 13.85 4.01 3.52 0.59
EPS in Rs 8.63 20.76 3.07 0.47 9.11 4.70 7.90 9.47 9.03 10.64 3.08 2.70 0.45
Raw PDF

Profit & Loss

Figures in Rs. Crores

Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
306 397 643 648 621 538
258 328 538 576 554 495
Operating Profit 49 69 105 72 67 43
OPM % 16% 17% 16% 11% 11% 8%
6 0 0 1 1 1
Interest 7 7 7 6 4 4
Depreciation 6 7 7 8 9 11
Profit before tax 42 56 91 59 55 30
Tax % 18% 24% 26% 26% 26% 27%
35 42 68 44 40 22
EPS in Rs 32.62 52.15 33.41 31.10 16.87
Dividend Payout % 0% 11% 25% 22% 24% 44%
Compounded Sales Growth
10 Years: %
5 Years: 12%
3 Years: -6%
TTM: -13%
Compounded Profit Growth
10 Years: %
5 Years: -9%
3 Years: -31%
TTM: -46%
Stock Price CAGR
10 Years: %
5 Years: %
3 Years: -13%
1 Year: -31%
Return on Equity
10 Years: %
5 Years: 19%
3 Years: 13%
Last Year: 7%

Balance Sheet

Figures in Rs. Crores

Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Equity Capital 0.00 13 13 13 13 13
Reserves 127 156 219 246 277 289
67 57 62 50 7 63
25 33 30 33 37 37
Total Liabilities 219 259 324 342 334 402
126 126 141 156 191 201
CWIP 9 29 42 35 6 12
Investments 0 0 0 0 0 0
83 103 141 151 137 189
Total Assets 219 259 324 342 334 402

Cash Flows

Figures in Rs. Crores

Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
31 40 40 50 74 -17
-24 -23 -34 -14 -18 -26
-7 -17 -6 -35 -57 42
Net Cash Flow 0 0 -0 0 0 0

Ratios

Figures in Rs. Crores

Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Debtor Days 45 43 35 35 33 58
Inventory Days 65 64 57 61 57 80
Days Payable 12 15 7 8 11 8
Cash Conversion Cycle 98 91 85 89 80 131
Working Capital Days 67 72 69 74 67 111
ROCE % 30% 38% 22% 19% 10%

Shareholding Pattern

Numbers in percentages

Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025
58.88% 58.85% 58.89% 58.89% 58.89% 58.89% 58.89% 58.89% 58.71% 58.71% 61.20% 61.20%
6.15% 6.22% 6.24% 6.23% 6.24% 6.19% 6.22% 6.29% 6.29% 6.36% 6.31% 6.31%
5.46% 5.48% 5.40% 5.19% 5.23% 5.33% 5.28% 5.26% 5.16% 5.16% 5.16% 5.69%
29.50% 29.45% 29.48% 29.69% 29.65% 29.59% 29.61% 29.56% 29.84% 29.79% 27.33% 26.80%
No. of Shareholders 24,39829,81732,86933,13733,20833,35231,66531,49631,60131,17130,26729,823

* The classifications might have changed from Sep'2022 onwards. The new XBRL format added more details from Sep'22 onwards.

Classifications such as banks and foreign portfolio investors were not available earlier. The sudden changes in FII or DII can be because of these changes.

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Documents

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