Sector Alpha

Track where the smart money flows in Indian equities

DashboardWeekly UpdateUploadPipelinePE CyclesBrainAbout

Data updated weekly. Not financial advice.

Sector Alpha
  1. Home
  2. /Deep Value
  3. /Chemicals - Organic
  4. /Fairchem Organics Ltd
MomentumDeep Value

Fairchem Organics Ltd: Is It a Deep Value Opportunity?

AverageAccelerating

As of May 10, 2026, Fairchem Organics Ltd (Chemicals - Organic) has a deep value score of 49/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -27%.

Fairchem Organics Ltd Key Facts

PE Ratio
130.0x
Market Cap
₹807 Cr
Value Score
49/100
PAT Growth YoY
+525%
Revenue Growth YoY
-3%
OPM
6.9%
PE: At PeakDanger Bubble

What's Happening

⚠️PE rising despite falling earnings — price running ahead of reality
💪Debt reduced 36% YoY — balance sheet strengthening
👔Promoter buying — stake up 2.5% this quarter

Key Numbers

PAT Growth YoY
+525%
Inflection Up
Revenue YoY
-3%
Accelerating
Operating Margin
6.9%
+321 bps YoY
PE Ratio
130.0
PEG Ratio
0.00
Current Price
₹619
Dividend Yield
1.21%
3Y PAT CAGR
-49%
Market Cap
807 Cr
Valuation
N/A

How Fast Is Fairchem Organics Ltd Growing?

Revenue, profit and margin growth rates

MetricYoY3Y CAGRTrend
Revenue-3%-11%Accelerating
PAT (Net Profit)+525%-49%Inflection Up
OPM6.9%+321 bpsVolatile
← Back to Chemicals - OrganicAll Deep Value SectorsDashboard

Frequently Asked Questions: Fairchem Organics Ltd

Based on publicly available financial data. This is educational research, not investment advice.

What is Fairchem Organics Ltd's deep value score?

Fairchem Organics Ltd has a deep value score of 49/100 (rated Average). This score is calculated from three components

  • Earnings Score: 33/40 — measures PAT growth momentum across quarters
  • Underperformance Score: 14/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
  • Quality Score: 22/25 — operational quality (margins, revenue growth, valuation)

Is Fairchem Organics Ltd fundamentally improving?

Fairchem Organics Ltd's quarterly profit (PAT) growth trajectory

  • Latest Quarter PAT Growth (QoQ): +500%
  • Previous Quarter PAT Growth (QoQ): -113%
  • 2 Quarters Ago PAT Growth (QoQ): -34%
  • PAT Acceleration: +267.1pp (profits are accelerating)
  • 1 consecutive quarters of positive PAT growth

Why is Fairchem Organics Ltd underperforming despite good earnings?

Fairchem Organics Ltd is underperforming the market despite improving earnings — this is the core deep value thesis

  • 1-Year Return vs Nifty 500: -27%
  • 6-Month Return vs Nifty 500: -14%
  • 3-Month Return vs Nifty 500: +2%
  • Yet average quarterly PAT growth is +118% — earnings are improving
  • The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.

What is the earnings momentum for Fairchem Organics Ltd?

Fairchem Organics Ltd's earnings momentum is Accelerating — profit growth is speeding up.

  • PAT QoQ progression: -34% → -113% → +500% (2Q ago → 1Q ago → latest)
  • Acceleration: +267.1pp
  • PAT YoY Growth: +525%

Is Fairchem Organics Ltd undervalued?

Fairchem Organics Ltd's valuation metrics

  • Price-to-Earnings (PE): 145.1x
  • Price-to-Book (PB): 3.1x
  • PEG Ratio: 0.0x

What are the revenue and margin trends for Fairchem Organics Ltd?

Fairchem Organics Ltd's revenue and margin trends

  • Latest Quarter Revenue Growth (QoQ): +17%
  • Average Quarterly Revenue Growth: -3%
  • Revenue Acceleration: +15.8pp
  • Latest OPM Change: +2.7pp (margins expanding)
  • Average OPM Change: +1.0pp
  • Revenue YoY: -3%

What is Fairchem Organics Ltd's trailing twelve month (TTM) performance?

Fairchem Organics Ltd's trailing twelve month (TTM) performance

  • TTM PAT: ₹6 Cr
  • TTM PAT Growth: -74.8% YoY
  • TTM Revenue: ₹460 Cr
  • TTM Revenue Growth: -14.6% YoY
  • TTM Operating Margin: 4.7%

What sector does Fairchem Organics Ltd belong to?

Fairchem Organics Ltd key facts

  • Sector: Chemicals - Organic
  • Market Cap: ₹807 Cr
  • Rank in Chemicals - Organic: #1 by value score
  • Overall rank among all deep value stocks: #7

Is Fairchem Organics Ltd a good deep value opportunity to study?

Fairchem Organics Ltd shows limited deep value signals currently — score is 49/100 (Average). Monitor for improvement.

  • Value Score: 49/100 (Average)
  • Earnings: Accelerating
  • 1Y Underperformance: -27% vs Nifty 500

What is the bull and bear case for Fairchem Organics Ltd?

Research Signals (Bull Case)

  • Earnings accelerating — profit growth speeding up
  • Revenue growth also accelerating
  • Operating margins expanding

How does the Chemicals - Organic sector look for deep value?

Chemicals - Organic deep value sector overview

  • 1 deep value stocks in this sector
  • Average value score: 49/100
  • Avg PAT acceleration: +267.1pp
  • Top pick: Fairchem Organics Ltd

What is deep value investing?

Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.

How is the deep value score calculated?

The deep value score (0-100) combines three factors:

- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)

Higher score indicates a stronger contrarian research signal.

The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.