Fairchem Organics Limited (FAIRCHEMOR.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-25.0%

₹487.93

vs ₹650.15 price

Levered DCF

₹128.23

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

6.21

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020
P/E	101.17×	52.8×	40.63×	27.33×	28.81×	22.97×	24.41×
P/B	2.13×	3.84×	5.67×	4.59×	8.43×	5.78×	6.59×
P/S	1.22×	2.16×	2.65×	1.84×	3.05×	2.47×	2.77×
EV / EBITDA	29.18×	27.7×	24.26×	16.98×	19.18×	15.01×	16.66×
Gross margin	7.7%	12.4%	24.8%	24.1%	27.6%	31.7%	31.7%
Operating margin	2.3%	6.0%	21.2%	10.0%	15.3%	15.7%	16.9%
Net margin	1.2%	4.1%	6.5%	6.7%	10.6%	10.7%	11.3%
Current ratio	1.65×	2.3×	5.1×	2.22×	2.04×	1.93×	1.23×
Debt / equity	0.32×	0.21×	0.03×	0.19×	0.27×	0.34×	0.52×
Interest coverage	2.87×	8.8×	31.13×	10.38×	14.37×	8.92×	7.86×
Dividend yield	1.7%	0.8%	0.6%	1.4%	0.2%	0.0%	1.2%
Payout ratio	176.3%	44.4%	24.1%	38.9%	6.7%	0.0%	30.2%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020
Return on equity	2.1%	7.3%	14.0%	16.8%	29.3%	25.2%	27.0%
Return on invested capital	2.2%	6.1%	31.0%	14.8%	23.7%	20.0%	20.3%
Return on assets	1.4%	5.5%	12.1%	12.7%	21.0%	16.4%	15.7%
Free cash flow yield	4.1%	-4.0%	3.4%	2.9%	0.3%	1.7%	0.1%
Earnings yield	1.0%	1.9%	2.5%	3.7%	3.5%	4.4%	4.1%
Enterprise value	₹6.4B	₹12.2B	₹16.5B	₹12.4B	₹20.2B	₹10.3B	₹9.1B
Net debt / EBITDA	3.75×	1.4×	0.11×	0.69×	0.59×	0.83×	1.21×
Cash conversion cycle (days)	124	120	78	87	84	90	101