IIFL Securities's Stock Idea: Buy Fact with Target Rs 850

On June 18, IIFL Securities issued a buy recommendation for Fact, with a target price of Rs 850, implying a potential upside of 4%. The current market price of Fact is Rs 817.05. This recommendation is likely based on the company's strong fundamentals, including its leading market position in the fertilizer industry, its consistent financial performance, and its ongoing expansion plans. Investors should note that this recommendation is based on the current market conditions and may not reflect future performance.

About Fact:

Larsen & Toubro (L&T) is a leading Indian multinational conglomerate headquartered in Mumbai. It is one of the largest construction and engineering companies globally, with operations in multiple sectors including infrastructure, construction, manufacturing, technology, and financial services. L&T is listed on the National Stock Exchange (NSE) of India and has a market capitalization of approximately $50 billion as of 2023. The company has a strong track record of revenue growth, profitability, and shareholder returns, making it a well-established and respected player in the Indian and global markets.

52 Week Price Trend:

Fact's (NSE: FACT) current market price (CMP) of Rs 817.05 has experienced a significant decline compared to its 52-week high of Rs 908.95. This represents a drop of around 10%. However, it is still trading well above its 52-week low of Rs 192, indicating a substantial recovery since the lows witnessed during the market downturn. The recent price movement suggests that investors may be adopting a cautious approach, influenced by global economic uncertainties and the impact on the fertilizer industry.

Stratzy's MOST Analysis:

Based on Stratzy's MOST Framework, FACT has earned an AAA rating, indicating the company's strong fundamentals across all four pillars: Management, Outlook, Safety, and Trend. This suggests that FACT has a well-managed team, a positive growth outlook, a sound financial position, and an upward market trend. The high rating indicates that FACT is a company with low fundamental risks, making it a potentially attractive investment opportunity.

Company's Fundamentals:

Fact (NSE: FACT) is a company listed on the National Stock Exchange of India (NSE). Key financial ratios for FACT include a Stock PE of 114.72, indicating that investors are willing to pay Rs. 114.72 for every rupee of earnings. The PB Ratio of 35.44 suggests that the company's market value is 35.44 times its book value. FACT's Dividend Yield of 0.13% implies that investors receive Rs. 0.13 in dividends for every Rs. 100 invested in the company. These ratios provide insights into the company's valuation, profitability, and income distribution, helping investors make informed decisions about investing in FACT.

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

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