Shares of Fertilizers and Chemicals Travancore (FACT) shot up 18.55 percent on Thursday’s early trades to reach an intraday high of ₹ 338.00 apiece on the Bombay Stock Exchange (BSE), after the Kerala State government announced its plans to acquire 15 acres of land owned by the company, according to a report by Mint.
This land is in Eloor, and the government plans to hand it over to Cochin University of Science and Technology (Cusat) for setting up a Science park. At 12:34 PM, the stock was trading at ₹ 329.15 apiece, up 15.45 percent.
On Tuesday, discussions were held with the Vice Chancellor of Cochin University of Science and Technology, the Industries Minister and FACT officials to acquire land for the science park and the government has already expressed its willingness to acquire the land. A board meeting is to be convened to discuss this request. Once approved, it will be sent to the Union government for its nod.
Fertilizers and Chemicals Travancore’s share price has appreciated to the tune of 50 percent in the past five days, and the stocks gave multibagger returns of 140.26 percent in the past year. Therefore, if an investor had invested in the company’s shares a year ago, the value of their holdings would have been ₹ 2.40 lakhs today!
FACT is the first large-scale fertiliser plant in India at Kochi, Kerala. The company manufactures and sells fertilizers, its by-products and Caprolactam. It is under the aegis of the Department of Fertilizers, Ministry of Chemicals & Fertilizers, Government of India.
With a market capitalization of ₹ 18,467 crores, FACT is a mid-cap stock. It has a very high return on equity of 7531.71 percent. The company’s shares were trading at a price-to-earnings ratio of 27.14, which is significantly higher than the industry P/E of 14.38, indicating that the stock might be overvalued as compared to its peers.
FACT reported revenue of ₹4,424.8 crores for the year ended March 31, 2022, indicating an increase of 129.64 percent as compared to ₹ 1,926.82 reported for the year ended March 31, 2021. Its net profit came in at ₹ 353.28 crores for the year ended March 31, 2022, against a loss of ₹ 129.06 crores in the previous year.
It reported a revenue of ₹ 1,721.94 crores in the third quarter of FY23 (October to December 2022), up 42.49 percent against ₹ 1,208.46 crores reported in the corresponding quarter last year (October to December 2021). Its profit increased by 280.34 percent during the period, to ₹165.79 crores from ₹ 43.59 crores.
Written by Simran Bafna
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