Fertilisers and Chemicals Travancore Ltd.
ISIN: INE188A01015 • Market Cap: ₹50,925 Cr
The 5-Pillar Quality Audit for Fertilisers and Chemicals Travancore Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (0.3%), Return on Capital Employed (18.5%), and equity compounding (3.0%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.94 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (-5.1%) and 3Y PAT CAGR (-64.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 1821.34 vs PEG of 46.34 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 90.0%, backed by 9.2% institutional ownership.
Key Fundamental Strengths
Consistent Market Standing (Large Cap)
Established player in the Chemicals sector with an overall fundamental quality score of 44/100.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 0.94)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Topline Stagnation (3Y Sales CAGR: -5.1%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Priced for Perfection (P/E: 1821.34)
A steep valuation multiple of 1821.34 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking FACT against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 44/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Chemicals Sector Peer Comparison
Compare FACT directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Fertilisers and Chemicals Travancore Ltd. (FACT)Current | 44/100 | ₹50,925 Cr | 1821.34 | 18.5% | 0.94 | — |
| Solar Industries India Ltd. (SOLARINDS) | 80/100 | ₹1.79 Lakh Cr | 89.97 | 30.2% | 0.23 | View |
| Pidilite Industries Ltd. (PIDILITIND) | 75/100 | ₹1.68 Lakh Cr | 63.40 | 28.7% | 0.01 | View |
| SRF Ltd. (SRF) | 73/100 | ₹76,329 Cr | 35.31 | 15.2% | 0.36 | View |
| Coromandel International Ltd. (COROMANDEL) | 72/100 | ₹60,148 Cr | 32.83 | 21.6% | 0.07 | View |
| Linde India Ltd. (LINDEINDIA) | 61/100 | ₹57,146 Cr | 104.59 | 12.2% | 0.00 | View |
Frequently Asked Questions: Fertilisers and Chemicals Travancore Ltd.
Q:What is the 5-Pillar Fundamental Score for Fertilisers and Chemicals Travancore Ltd. (FACT)?
Fertilisers and Chemicals Travancore Ltd. has a RupeeTools Fundamental Score of 44/100, placing it in the 'Caution / Risky' category. Its pillar scores are: Profitability (43/100), Financial Health (64/100), Growth (18/100), Valuation (18/100), and Ownership Quality (72/100).
Q:Is FACT fundamentally strong for long-term investment?
FACT currently holds a moderate quality rating of 44/100. While it operates in the Chemicals sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does FACT pass the Coffee Can Investing filter?
Yes! FACT satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does FACT compare against other Chemicals peers?
Within India's Chemicals sector, FACT trades at a P/E of 1821.34 and generates an ROCE of 18.5%. Compare its 5-Pillar score of 44/100 against top sector peers like Solar Industries India Ltd. (80/100), Pidilite Industries Ltd. (75/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.