Fairchem Organics Intrinsic Value

FAIRCHEMOR • Chemicals
Current Stock Price
₹514.30
Primary Intrinsic Value
₹154.29
Market Cap
₹668.6 Cr
-60.0% Downside
Median Value
₹205.72
Value Range
₹154 - ₹784
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%

FAIRCHEMOR Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹154.29 ₹123.43 - ₹185.15 -70.0% EPS: ₹1.90, Sector P/E: 12x
Book Value Method asset ₹232.31 ₹209.08 - ₹255.54 -54.8% Book Value/Share: ₹232.31, P/B: 1.0x
Revenue Multiple Method revenue ₹286.15 ₹257.53 - ₹314.76 -44.4% Revenue/Share: ₹357.69, P/S: 0.8x
EBITDA Multiple Method earnings ₹205.72 ₹185.15 - ₹226.29 -60.0% EBITDA: ₹18.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹783.65 ₹626.92 - ₹940.38 +52.4% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹154.29 ₹138.86 - ₹169.72 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹154.29 ₹138.86 - ₹169.72 -70.0% Revenue Growth: -7.8%, Adj P/E: 8.0x
Graham Defensive Method conservative ₹154.29 ₹138.86 - ₹169.72 -70.0% EPS: ₹1.90, BVPS: ₹232.31
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

FAIRCHEMOR Intrinsic Value Analysis

What is the intrinsic value of FAIRCHEMOR?

Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of Fairchem Organics (FAIRCHEMOR) is ₹205.72 (median value). With the current market price of ₹514.30, this represents a -60.0% variance from our estimated fair value.

The valuation range spans from ₹154.29 to ₹783.65, indicating ₹154.29 - ₹783.65.

Is FAIRCHEMOR undervalued or overvalued?

Based on our multi-method analysis, Fairchem Organics (FAIRCHEMOR) appears to be trading above calculated value by approximately 60.0%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 8.62 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Return on Equity 1.0% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 4.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 1.16x Industry Standard: 1.0x+ Above 1.0x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹-17 Cr ₹-30 Cr Negative Cash Flow 3/10
March 2024 ₹75 Cr ₹66 Cr Positive Free Cash Flow 8/10
March 2023 ₹50 Cr ₹43 Cr Positive Free Cash Flow 8/10
March 2022 ₹41 Cr ₹24 Cr Positive Free Cash Flow 8/10
March 2021 ₹40 Cr ₹29 Cr Positive Free Cash Flow 8/10