IIFL Securities Stock Market Watch Today: Buy Fact - July 04

IIFL Securities has issued a buy recommendation for Fact, with a target price of Rs 1075, which represents a potential gain of approximately 2.4% from the current market price of Rs 1048.9. The brokerage firm's positive outlook on Fact is based on the expectation of robust demand and improved profitability in the fertilizer sector. Fact is a leading producer of urea and other fertilizers in India, and the brokerage firm believes that the company is well-positioned to benefit from the government's focus on increasing agricultural productivity.

About Fact:

Birla Corporation Limited is an Indian multinational conglomerate headquartered in Mumbai, Maharashtra, India. It is the flagship company of the Aditya Birla Group. The company has a diverse range of businesses including cement, chemicals, fertilisers, aluminium, copper, power, financial services, and telecommunications. Birla Corporation is one of the largest cement producers in India and has a global presence in over 50 countries. The company has a market capitalisation of over ₹1 lakh crore and is listed on the National Stock Exchange of India.

52 Week Price Trend:

FACT (Fertilizers and Chemicals Travancore Limited) has witnessed a significant increase in its share price, currently trading at Rs 1048.9. This represents a remarkable growth compared to its 52-week low of Rs 192. However, the stock still falls short of its 52-week high of Rs 908.95. This indicates potential for further upside potential in the coming months. Factors driving this growth include increased demand for fertilizers due to favorable agricultural conditions, government initiatives supporting the fertilizer sector, and FACT's focus on operational efficiency. The company's robust financial performance and strong order book position it well for continued growth in the future.

Stratzy's MOST Analysis:

FACT has received a AAA rating from Stratzy's MOST framework, indicating low fundamental risks. This rating is based on an assessment of the company's management, outlook, safety, and trend. The AAA rating suggests that FACT has strong management, a positive outlook, a safe and stable operating environment, and a favorable trend in its financial performance. This rating implies that FACT is a low-risk investment option with a high probability of delivering consistent returns.

Company's Fundamentals:

Fact (NSE: FACT) has a Price to Earnings (PE) ratio of 114.72, a Price to Book (PB) ratio of 35.44, and a dividend yield of 0.13%. The PE ratio measures the company's stock price relative to its earnings per share, with a higher PE indicating a higher valuation. The PB ratio compares the company's market value to its book value, providing insights into the company's asset value. The dividend yield represents the annual dividend paid per share as a percentage of the current stock price, indicating the income return for shareholders.

Fundamental and Technical information provided in this blog were last updated on 04 Jul, 2024

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