1. At a Glance
FACT is India’s OG fertilizer maker—born in 1943, pre-independence. Now valued at ₹63,000 Cr+, it’s seeing stock rockets despite falling profits. It makes urea, ammonium sulphate, caprolactam, and a whole lot of market confusion.
2. Introduction with Hook
What happens when a PSU fertilizer company from 1943 becomes a retail investor darling in 2024? You get a fertilizer rally that smells like caprolactam-scented euphoria.
- Market Cap: ₹63,000+ Cr
- EPS (FY25): ₹0.64
- P/E: 2,827 (Not a typo. A cosmic joke.)
- ROE: 1.63%
This is what happens when meme stocks invade the fertilizer sector. Welcome to the FACTs you didn’t ask for—but desperately need.
3. Business Model (WTF Do They Even Do?)
FACT produces:
- Fertilizers: Factamfos (NP), ammonium sulphate, organic, bio, MOP (imported)
- Byproducts: Bagged gypsum, sulphuric acid
- Caprolactam: Nylon precursor for textiles & engineering plastics
- Heavy reliance on subsidies = Govt cheque = Company breathing
Their primary clients? Farmers. Their biggest client? Government subsidies.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 6,198 | 5,055 | 4,051 |
| Net Profit (₹ Cr) | 613 | 146 | 41 |
| OPM (%) | 12% | 7% | 2% |
| EPS (₹) | 9.47 | 2.26 | 0.64 |
| ROE (%) | 30% | 17% | 1.63% |
🧂 Revenue is shriveling like dry paddy fields
💸 Profits fell faster than FPO subscriptions in PSU week
5. Valuation
- P/E: 2,827 (because why not?)
- Book Value: ₹21.2
- P/B: 46.1
- Market Cap: ₹63,190 Cr
Fair Value Range: ₹170 – ₹300
Anything beyond this is speculative fertilizer—because fundamentals say “grow slow” but the stock says “moon soon.”
6. What’s Cooking – News, Triggers, Drama
🌾 Subsidy pipeline from government = lifeline
🧪 Caprolactam biz helps de-risk agri dependence
🚨 Multiple clarifications sought by exchanges (volume spikes = algo love or operator playground?)
🧱 Plans to modernize old plants & increase Factamfos output
💥 No major capex announced = not expansion mode yet
7. Balance Sheet
| Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | 647 Cr | 647 Cr | 647 Cr |
| Reserves | ₹627 Cr | ₹729 Cr | ₹724 Cr |
| Borrowings | ₹1,842 Cr | ₹1,810 Cr | ₹1,805 Cr |
| Total Assets | ₹5,494 Cr | ₹5,868 Cr | ₹5,981 Cr |
🏦 Minimal change = no fresh capital injection
🎯 Leverage remains static = neither riskier nor safer
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net CF (₹ Cr) |
|---|---|---|---|---|
| FY23 | 638 | -765 | -5 | -132 |
| FY24 | 278 | 214 | -106 | 386 |
| FY25 | 140 | -282 | -75 | -217 |
💧 FY25 net cash burn = ₹217 Cr
🛠️ CFO tanking = weak internal accruals
🎈 CFF negative = no borrow-and-spend party
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 30% | 17% | 9% |
| ROE (%) | 30% | 17% | 1.63% |
| OPM (%) | 12% | 7% | 2% |
| Debt/Equity | 2.84 | 2.48 | 2.49 |
📉 Profitability has collapsed
📛 OPM has evaporated like urea in sunlight
🔋 Debt/Equity remains uncomfortably high
10. P&L Breakdown – Show Me the Money
| Year | Sales (₹ Cr) | Op Profit (₹ Cr) | Net Profit (₹ Cr) | OPM (%) |
|---|---|---|---|---|
| FY23 | 6,198 | 755 | 613 | 12% |
| FY24 | 5,055 | 359 | 146 | 7% |
| FY25 | 4,051 | 95 | 41 | 2% |
💣 Operating profits dropped ~87% in 2 years
🧯 This isn’t a dip, it’s a nosedive with fertilizer bags as parachutes
11. Peer Comparison
| Company | P/E | ROCE (%) | Market Cap (₹ Cr) | OPM (%) | PAT (₹ Cr) |
|---|---|---|---|---|---|
| Coromandel Int | 40.2 | 23.2 | ₹69,224 Cr | 10.7% | ₹1,720 Cr |
| FACT | 2,827 | 8.64 | ₹63,190 Cr | 2.34% | ₹22.35 Cr |
| Chambal Fert | 13.45 | 27.87 | ₹22,178 Cr | 14.92% | ₹1,649 Cr |
| RCF | 36.0 | 7.5 | ₹8,627 Cr | 3.98% | ₹239 Cr |
| Paradeep Phosp | 25.7 | 13.92 | ₹14,178 Cr | 9.08% | ₹551 Cr |
📉 FACT is overvalued 10x vs peers
🏚️ Operating performance is a shadow of its price chart
12. Miscellaneous – Shareholding, Promoters
| Shareholder Type | Mar 2024 | Mar 2025 |
|---|---|---|
| Promoters | 90.00% | 90.00% |
| FIIs | 0.12% | 0.14% |
| DIIs | 8.60% | 8.59% |
| Public | 0.88% | 0.87% |
🛡️ Govt owns 90%. Retail owns the hype.
🔎 Over 1 lakh shareholders = Retail is deep in this fertilizer trap
13. EduInvesting Verdict™
FACT is a PSU phoenix with a rally that makes no financial sense. Caprolactam and nostalgia aren’t enough when earnings collapse 90% and you trade at a P/E of 2,827.
Could the government clean up, recap, and re-energize FACT? Sure. But till then, this remains the stock market equivalent of a viral TikTok video: high on hype, low on substance.
Retail be warned: This one is more “speculative manure” than “growth fertilizer.”
Metadata
– Written by EduInvesting Research | July 15, 2025
– Tags: FACT, PSU rally, Fertilizer stock, Caprolactam, Udyogamandal, MemeStock India
