Interest Cost Reduction Deleveraging
Expected: Dec 2025MEDIUM confidence
What: Debt-to-Equity: 0.09x
Fedders Holding Ltd: Is It a Deep Value Opportunity?
WeakSteady GrowthFinancial
As of , Fedders Holding Ltd (Finance & Investments - Others) has a deep value score of 33/100 (rated Weak). Earnings are accelerating. 1Y return vs Nifty 500: -26%.
Fedders Holding Ltd Key Facts
- PE Ratio
- 11.5x
- Market Cap
- ₹699 Cr
- Value Score
- 33/100
- PAT Growth YoY
- +825%
- Revenue Growth YoY
- -10%
PB: Cycle BottomStrong Opportunity
What's Happening
💎PB falling while earnings hold — value emerging
Earnings Acceleration Triggers
1. Interest Cost Reduction Deleveraging
Dec 2025MEDIUM
2. Demerger Spin Off Value Unlock
Q4 FY26LOW
Key Risks
1. SEBI imposed a ₹4 lakh penalty for monitoring agency non-cooperation and disclos
MEDIUM2. Auditors issued qualified conclusions regarding ₹47
HIGHSector-Specific Signals
Operating Margin (Excl. Other Income)2.67%Not Given
Other Income as % of PBT101.64%Not Given
Debt-to-Equity Ratio0.09xNot Given
Average Return on Equity7.08%Not Given
Key Numbers
PAT Growth YoY
+825%
Inflection Up
Revenue YoY
-10%
Stable
Price to Book
1.1
PEG Ratio
0.08
Current Price
₹35
3Y PAT CAGR
-50%
Market Cap
700 Cr
Valuation
N/AWhy Are Fedders Holding Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Demerger Spin Off Value Unlock
Expected: Q4 FY26LOW confidence
What: Subsidiary delisting: Effective March 2026
What Are the Key Risks for Fedders Holding Ltd?
Earnings deceleration risks from management commentary
SEBI imposed a ₹4 lakh penalty for monitoring agency non-cooperation and disclos
MEDIUMTrigger: SEBI imposed a ₹4 lakh penalty for monitoring agency non-cooperation and disclosure delays.
Impact: PAT impact: ₹0.04 Cr
Management view: Appointed Informerics Valuation and Rating Pvt. Ltd. as new monitoring agency.
Monitor: regulatory
Auditors issued qualified conclusions regarding ₹47
HIGHTrigger: Auditors issued qualified conclusions regarding ₹47.65 lakhs not transferred to Investor Education Fund and inadequate records.
Management view: Management takeover transition cited for record maintenance issues.
Monitor: litigation
What Did Fedders Holding Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹116.94 Cr
YoY +25.15%QoQ +66.69%
Consolidated total income grew to ₹116.94 Cr, although net sales from operations actually declined 10.21% YoY to ₹79.68 Cr, with the balance driven by other income.
EBITDA
₹39.45 Cr
YoY +1021.05%Margin 33.74%
EBITDA growth was heavily skewed by non-operating income, with core operating profit excluding other income standing at a meager ₹2.13 Cr.
PAT
₹36.70 Cr
YoY +810.67%QoQ +154.68%
Net profit reached a record high of ₹36.70 Cr, but other income of ₹37.26 Cr constituted 101.64% of profit before tax.
Other Highlights
• Other income of ₹37.26 Cr exceeded total PBT of ₹36.72 Cr.
• Standalone net loss of ₹7.22 lakhs vs ₹8.16 lakhs profit YoY.
• Cash and equivalents reached ₹85.41 Cr by Dec 2025.
What Sector Metrics Matter for Fedders Holding Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Operating Margin (Excl. Other Income)
2.67%
YoY Not GivenQoQ 103 bps
Why: Improved from 1.64% in Q2 FY26 but remains significantly below historical highs.
Other Income as % of PBT
101.64%
YoY Not GivenQoQ Not Given
Why: Profitability is almost entirely dependent on non-operating income of ₹37.26 Cr.
Debt-to-Equity Ratio
0.09x
YoY Not GivenQoQ Not Given
Why: Reached a low point signaling a stronger balance sheet despite operational weakness.
Average Return on Equity
7.08%
YoY Not GivenQoQ Not Given
Why: Reflects modest profitability relative to equity invested, below NBFC sector averages.
Warrant Forfeiture Amount
₹14.01 Cr
YoY nullQoQ null
Why: Warrant holders failed to exercise conversion options within the 18-month stipulated period ending October 2025.
Effective Tax Rate
0.05%
YoY Not GivenQoQ Not Given
Why: Suggests potential one-time adjustments or deferred tax benefits rather than normalized incidence.
How Fast Is Fedders Holding Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | -10% | +67% | Stable |
| PAT (Net Profit) | +825% | -50% | Inflection Up |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Deep Value Stocks in Finance & Investments - Others
Frequently Asked Questions: Fedders Holding Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is Fedders Holding Ltd's deep value score?
Fedders Holding Ltd has a deep value score of 33/100 (rated Weak). This score is calculated from three components
- Earnings Score: 24/40 — measures PAT growth momentum across quarters
- Underperformance Score: 14/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 12/25 — operational quality (margins, revenue growth, valuation)
Is Fedders Holding Ltd fundamentally improving?
Fedders Holding Ltd's quarterly profit (PAT) growth trajectory
- Latest Quarter PAT Growth (QoQ): +155%
- Previous Quarter PAT Growth (QoQ): -12%
- 2 Quarters Ago PAT Growth (QoQ): +149%
- PAT Acceleration: +3.0pp (profits are accelerating)
- 1 consecutive quarters of positive PAT growth
Why is Fedders Holding Ltd underperforming despite good earnings?
Fedders Holding Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- 1-Year Return vs Nifty 500: -26%
- 6-Month Return vs Nifty 500: -26%
- 3-Month Return vs Nifty 500: -22%
- Yet average quarterly PAT growth is +97% — 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 Fedders Holding Ltd?
Fedders Holding Ltd's earnings momentum is Steady — consistent growth.
- PAT QoQ progression: +149% → -12% → +155% (2Q ago → 1Q ago → latest)
- Acceleration: +3.0pp
- PAT YoY Growth: +825%
Is Fedders Holding Ltd undervalued?
Fedders Holding Ltd's valuation metrics
- Price-to-Earnings (PE): 8.9x
- Price-to-Book (PB): 1.1x
- PEG Ratio: 0.1x
What are the revenue and margin trends for Fedders Holding Ltd?
Fedders Holding Ltd's revenue and margin trends
- Latest Quarter Revenue Growth (QoQ): +49%
- Average Quarterly Revenue Growth: -4%
- Revenue Acceleration: +39.0pp
- Latest OPM Change: +1.0pp (margins expanding)
- Average OPM Change: +0.4pp
- Revenue YoY: -10%
What is Fedders Holding Ltd's trailing twelve month (TTM) performance?
Fedders Holding Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹74 Cr
- TTM PAT Growth: +72.1% YoY
- TTM Revenue: ₹320 Cr
- TTM Revenue Growth: -29.8% YoY
What sector does Fedders Holding Ltd belong to?
Fedders Holding Ltd key facts
- Sector: Finance & Investments - Others
- Market Cap: ₹700 Cr
- Rank in Finance & Investments - Others: #1 by value score
- Overall rank among all deep value stocks: #27
- Classification: Financial (banking/NBFC scoring model applied)
Is Fedders Holding Ltd a good deep value opportunity to study?
Fedders Holding Ltd shows limited deep value signals currently — score is 33/100 (Weak). Monitor for improvement.
- Value Score: 33/100 (Weak)
- Earnings: Accelerating
- 1Y Underperformance: -26% vs Nifty 500
What is the bull and bear case for Fedders Holding Ltd?
Research Signals (Bull Case)
- Earnings accelerating — profit growth speeding up
- Revenue growth also accelerating
- Operating margins expanding
What is the asset quality of Fedders Holding Ltd?
Fedders Holding Ltd asset quality metrics (financial sector)
- GNPA Trend: INSUFFICIENT_DATA
- NNPA Trend: INSUFFICIENT_DATA
Which other Finance & Investments - Others stocks are deep value opportunities?
Other deep value stocks in Finance & Investments - Others
- Oswal Green Tech Ltd — Score 49/100, Average
How does the Finance & Investments - Others sector look for deep value?
Finance & Investments - Others deep value sector overview
- 2 deep value stocks in this sector
- Average value score: 41/100
- Avg PAT acceleration: -109.5pp
- Top pick: Fedders Holding 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.
What are the growth catalysts for Fedders Holding Ltd?
Fedders Holding Ltd has 2 key growth catalysts identified from recent earnings analysis
- Interest Cost Reduction Deleveraging
- Demerger Spin Off Value Unlock
What are the key risks in Fedders Holding Ltd?
Fedders Holding Ltd has 2 key risks worth monitoring
- SEBI imposed a ₹4 lakh penalty for monitoring agency non-cooperation and disclos
- Auditors issued qualified conclusions regarding ₹47
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.