Fertilisers and Chemicals Travancore Ltd.
NSE: FACTFertilisers and Chemicals Travancore Ltd.: A 30-second snapshot
Fertilisers and Chemicals Travancore (FACT) trades at 879.60, marginally above its 200-DMA of 876.58 and 5.5% above the 50-DMA of 833.95, with RSI at 50.78 in neutral territory. The stock is 20.87% below its 52-week high, has returned 7.67% over the past year, and carries a debt-to-equity ratio of 278.99 — one of the most leveraged profiles in the Chemicals peer group of 6.
P/E
—
Forward P/E
—
ROE
—
Debt / Equity
278.99
Profit Margin
+7.7%
Div. Yield
+0.0%
5Y ROE > 15%
2/5
5Y FCF > 0
3/5
Quality
38/100
News
8 headlines · 6 positive · 1 negative
FACT begins production of di-ammonium phosphate - BusinessLine
BusinessLine
FACT commences DAP production at Udyogamandal plant - scanx.trade
scanx.trade
Fertilisers and Chemicals Travancore to commence production at Udyogamandal plant from May 15 - marketscreener.com
marketscreener.com
Fertilisers And Chemicals Travancore Granted Permission To Manufacture DAP In Existing Facilities - TradingView
TradingView
Fertiliser Stocks Under Pressure As PM Modi Pushes Natural Farming, Lower Chemical Use - NDTV Profit
NDTV Profit
Recent context
- ·FACT commenced DAP production at its Udyogamandal plant from 15 May 2026, following regulatory approval in April 2026 — the most significant operational development in recent news flow.
- ·An NDTV Profit report from 11 May 2026 noted fertiliser stocks broadly under pressure as PM Modi publicly advocates for natural farming and lower chemical usage, introducing policy uncertainty for the sector.
- ·Despite the mixed policy backdrop, price has gained 8.03% over the past 3 months with RSI near 50; key technical support levels sit at 775.15, 748.30, and 738.
Strengths
- +Revenue has grown 65.1% over 5 years, indicating meaningful top-line expansion in the fertiliser segment.
- +Price is above both the 50-DMA (833.95) and 200-DMA (876.58), with a 3-month gain of 8.03%, reflecting near-term positive price momentum.
- +FACT recently received regulatory permission to manufacture di-ammonium phosphate (DAP) and commenced production at its Udyogamandal plant — a capacity addition in a product category with domestic policy support.
- +FCF was positive in 3 of the available fiscal years, indicating the business generated cash in the majority of measured periods despite high leverage.
Weaknesses
- −Debt-to-equity of 278.99 is exceptionally high for a non-financial company; peers such as Pidilite and Coromandel operate at a fraction of this leverage, raising questions about balance-sheet resilience in a sector downcycle.
- −PE and forward PE are unavailable, consistent with earnings being near zero or deeply compressed; the 7.69% net profit margin leaves limited buffer against input cost increases or demand softness.
- −Quality score of 32 out of 100 places FACT 4th of 6 in its sector peer group, with ROE exceeding 15% in only 2 of the measured years — the earnings track record shows limited consistency.
- −Government policy signalling toward natural farming and reduced chemical fertiliser use (reported May 2026) introduces a structural demand headwind that could weigh on volumes and pricing power over a multi-year horizon.
Open questions
- ?How has FACT's debt-to-equity of 278.99 evolved over the past 5 years, and what proportion of debt is government-backed or subsidised given its PSU status?
- ?Does the DAP production approval represent a meaningful revenue diversification, or is it incremental relative to FACT's existing ammonium sulphate and complex fertiliser capacity?
- ?To what extent does FACT's profitability depend on government subsidy payments, and how does the timing and certainty of subsidy receipts affect reported FCF?
- ?How has the stock's 7.67% 1-year return compared to the sector median over the same period, and what explains the gap between price performance and the weak quality ranking?
Peer comparison: Chemicals
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| FACT | Fertilisers and Chemicals Travancore Ltd.You're viewing | — | — | 32 |
| Industry avg | across 5 peers | 54.7 | +17.6% | 44 |
| PIDILITIND | Pidilite Industries Ltd. | 61.1 | +23.5% | 66 |
| SOLARINDS | Solar Industries India Ltd. | 108.2 | — | 57 |
| SRF | SRF Ltd. | 43.4 | +13.8% | 41 |
| COROMANDEL | Coromandel International Ltd. | 28.2 | +15.6% | 30 |
| PIIND | PI Industries Ltd. | 32.6 | — | 25 |
Technical state
Current price
₹879.60
SMA 50
₹833.95
SMA 200
₹876.58
RSI (14)
50.8 (neutral)
From 52w high
-20.9%
1Y return
+7.7%
3M return
+8.0%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 278.99 is exceptionally elevated for a non-financial chemicals/fertilisers company; sector peers Pidilite and Coromandel operate with substantially lower leverage, and no ROE data is available to contextualise whether asset returns justify this debt load.
- highPE and forward PE are both unavailable, consistent with near-zero or negative earnings in the reported period; net profit margin is thin at 7.69%, quality score is 32 out of 100, and FACT ranks 4th of 6 sector peers on quality — a materially weak fundamental profile.
- mediumFCF was positive in only 3 of the years available, ROE exceeded 15% in just 2 years, and the persistence consistency score is 14 — indicating intermittent rather than structural earnings quality.
- mediumAn NDTV Profit headline (2026-05-11) reports fertiliser stocks under pressure as PM Modi pushes natural farming and reduced chemical fertiliser use — a policy direction that, if sustained, could compress long-term sector demand; news sample of 8 items is sparse for confident sentiment assessment.
- lowFACT ranks 4th of 6 peers on quality score (32 vs sector leader Pidilite at 66); no reportable PE makes relative-valuation comparison against peers (28x to 108x range) impossible.
Cross-section contradictions
- Price is up 7.67% over 1 year and currently trades above both the 50-DMA (833.95) and 200-DMA (876.58), yet the fundamental profile shows absent ROE, unavailable PE, and a quality score ranking 4th of 6 peers — positive price momentum co-exists with weak measured fundamentals without an obvious reconciling catalyst.
- News sentiment is net positive (6 positive vs 1 negative of 8 items) driven by DAP manufacturing approvals, but a concurrent headline flags government policy pressure on chemical fertiliser demand — the two signals point in opposite directions for the medium-term sector outlook.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 16 May 2026 · rotates through NIFTY 500 every ~5 days