Best Stocks to Buy Today : IIFL Securities's call on Fact - June 18

IIFL Securities recommends buying Fact shares at the current market price of Rs 817.05, with a target price set at Rs 850. This recommendation is based on the company's strong fundamentals, including its dominant position in the fertilizer market, diversified product portfolio, and efficient operations. Despite near-term headwinds, the brokerage firm believes Fact is well-positioned to benefit from the long-term growth potential of the fertilizer industry, making it an attractive investment opportunity.

About Fact:

Fact (NSE: FACT) is an Indian government-owned company that manufactures and sells fertilizers and chemicals. The company was founded in 1960 and is headquartered in Kochi, Kerala. FACT operates four fertilizer plants in India and has a total annual production capacity of over 1 million metric tons of urea and complex fertilizers. The company also produces a variety of other chemicals, including ammonia, sulfuric acid, and phosphoric acid. FACT's products are used in the agriculture, construction, and other industries.

52 Week Price Trend:

FACT's current market price (CMP) of Rs 817.05 falls within the range of its 52-week price fluctuations, which have seen a high of Rs 908.95 and a low of Rs 192. This indicates that the stock has experienced significant growth over the past year, but has recently faced some correction. However, it is still trading well above its 52-week low, suggesting potential upside potential for investors.

Stratzy's MOST Analysis:

FACT has been awarded a AAA rating by Stratzy's MOST framework, indicating that it has strong fundamental risk indicators. This assessment is based on the company's performance in four key areas: Management, Outlook, Safety, and Trend. FACT has demonstrated effective management, a positive outlook, a solid safety record, and a positive market trend, resulting in a high overall score and a low fundamental risk profile.

Company's Fundamentals:

Fact (NSE: FACT) is a leading Indian fertilizer producer. At present, the stock is trading at a Price to Earnings (PE) ratio of 114.72, indicating that investors are willing to pay INR 114.72 for every INR 1 of earnings. The Price to Book (PB) ratio of 35.44 suggests that the market value of Fact's assets is 35.44 times their book value. The Dividend Yield of 0.13% indicates that investors can expect to receive an annual dividend of INR 0.13 for every INR 100 invested in the stock. These metrics provide insights into the company's valuation, financial health, and dividend-paying capacity.

Fundamental and Technical information provided in this blog were last updated on 18 Jun, 2024

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