Stock Price Movement and Market Context
On 19 Feb 2026, Fairchem Organics Ltd’s share price touched an intraday low of Rs.603, representing a 2.63% drop during the trading session. The stock closed with a day change of -1.67%, underperforming its sector by 2.04%. This new low contrasts sharply with its 52-week high of Rs.1,100, reflecting a substantial depreciation of 45.27% from the peak.
The broader market environment saw the Sensex reversing sharply after a positive start, falling by 554.88 points to close at 83,414.94, down 0.38%. Despite this, the Sensex remains within 3.29% of its 52-week high of 86,159.02. The index is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed technical signals.
Fairchem Organics Ltd’s stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum over multiple time frames.
Financial Performance and Valuation Metrics
The company’s financial results have reflected challenges over recent periods. Operating profit has declined at an annualised rate of -33.06% over the past five years, indicating a persistent contraction in core profitability. The latest six months’ Profit After Tax (PAT) stood at Rs.1.55 crore, down by 79.42% compared to previous periods.
Quarterly net sales have also reached a low point, with the most recent quarter reporting Rs.100.13 crore, the lowest in recent history. Return on Capital Employed (ROCE) for the half-year period is at 3.47%, a figure that is considered modest within the industry context.
These financial indicators have contributed to the stock’s current valuation profile. The company’s Enterprise Value to Capital Employed ratio stands at 2.5, suggesting a fair valuation relative to its capital base. Additionally, the low Debt to EBITDA ratio of 1.11 times indicates a manageable debt burden and a strong capacity to service liabilities.
Strong fundamentals, steady climb upward! This Large Cap from Telecommunication sector earned its Reliable Performer badge through consistent execution. Safety meets solid returns here!
- - Reliable Performer certified
- - Consistent execution proven
- - Large Cap safety pick
Long-Term and Recent Performance Trends
Over the past year, Fairchem Organics Ltd has delivered a total return of -37.16%, significantly underperforming the Sensex, which gained 9.85% during the same period. The stock has also lagged behind the BSE500 index across multiple time frames, including the last three years, one year, and three months.
The company has reported negative earnings for six consecutive quarters, underscoring ongoing difficulties in generating positive bottom-line results. Profitability has deteriorated sharply, with profits falling by approximately 90% over the past year.
These trends have been reflected in the company’s Mojo Score, which currently stands at 26.0, categorised as a Strong Sell. This rating was downgraded from Sell on 17 Feb 2026, reflecting a reassessment of the company’s financial health and market prospects. The Market Cap Grade is 4, indicating a mid-tier market capitalisation relative to peers.
Valuation and Peer Comparison
Despite the subdued performance, Fairchem Organics Ltd is trading at a discount compared to its peers’ average historical valuations. The company’s ROCE of 3.1% and Enterprise Value to Capital Employed ratio of 2.5 suggest a valuation that is not stretched relative to its capital employed and earnings generation capacity.
The company’s low leverage, as indicated by the Debt to EBITDA ratio of 1.11 times, provides some cushion in terms of financial stability. However, the subdued profitability and declining sales remain key concerns for the stock’s valuation and market sentiment.
Holding Fairchem Organics Ltd from Specialty Chemicals? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary of Key Metrics
To summarise, Fairchem Organics Ltd’s stock has reached a 52-week low of Rs.603, reflecting a decline of over 45% from its peak of Rs.1,100. The company’s financial performance has been marked by shrinking operating profits, declining sales, and reduced profitability over recent quarters and years.
While the company maintains a low debt burden and a valuation discount relative to peers, its earnings and sales trends have weighed heavily on investor sentiment and stock performance. The Mojo Score downgrade to Strong Sell further highlights the challenges faced by the company in reversing its recent performance trajectory.
Market conditions, including a volatile Sensex and sector underperformance, have compounded the stock’s downward movement. The stock’s position below all major moving averages signals continued caution among market participants.
Technical and Market Positioning
Technically, the stock’s trading below the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages indicates a sustained bearish trend. This technical positioning aligns with the company’s fundamental challenges and recent financial results.
In comparison, the Sensex, despite a recent sharp reversal, remains relatively close to its 52-week high, suggesting that the broader market environment is not uniformly weak. This divergence highlights the stock-specific factors influencing Fairchem Organics Ltd’s performance.
Conclusion
Fairchem Organics Ltd’s fall to a 52-week low of Rs.603 encapsulates a period of financial contraction and market underperformance. The company’s declining profitability, subdued sales, and downgraded Mojo Grade reflect ongoing challenges within the Specialty Chemicals sector. While valuation metrics and debt levels provide some stability, the stock’s current technical and fundamental profile remains subdued as of 19 Feb 2026.
Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →
