Why FACT Ltd is Trending: Surging Volumes, Green Hydrogen Push & Fertilizer Market Moves
Business and Industry Overview:
Fertilizers and Chemicals Travancore Ltd (FACT) is one of India’s oldest fertilizer companies. It was started in 1943 in Kochi, Kerala. FACT was the first big fertilizer plant in India. The company makes many kinds of fertilizers to help farmers grow crops. It makes Factamfos, which is a complex fertilizer, and Ammonium Sulphate, a straight fertilizer. It also makes organic fertilizers, biofertilizers, and imports Muriate of Potash, which helps improve soil. Besides fertilizers, FACT also makes bagged gypsum, used in construction, and Caprolactam, which is used to make nylon products like tyre cords and nylon yarn for fabrics. FACT has factories that produce these products and supply them across India. This helps farmers grow more food. FACT has a large manufacturing capacity. It can make 2.25 lakh tons of Ammonium Sulphate, 6.34 lakh tons of Factamfos, 50,000 tons of Caprolactam, and 1.73 lakh tons of nitrogen-based fertilizers every year. This makes FACT one of the largest producers in India. The company is also planning to grow. FACT is investing ₹700 crore in new projects. One of these projects is a 1650 TPD NP Plant at its Cochin Division. This will help FACT increase its fertilizer production from 10 lakh tons to 14 lakh tons by 2024-25. This will also help increase its revenue from ₹3,250 crore to ₹5,000 crore in the next few years. FACT is also planning to build a 10,000 MT Ammonia storage tank to support fertilizer production. FACT has a special department called the Engineering and Design Organisation (FEDO). This department helps build factories for ammonia, sulfuric acid, phosphoric acid, hydrogen, and fertilizers.FACT has a lot of debt. Most of it is from loans from the Indian government. The company has asked the government to help reduce the debt. They want the government to forgive the loan interest and convert some of the debt into equity. They also want the remaining debt to be interest-free and repaid over the next 10 years.
Latest Stock News:
On April 17, 2025, the share price of Fertilizers and Chemicals Travancore Ltd (FACT) went up a lot. It rose by 13% in one day. The share price reached about ₹758. Many people were buying the stock. More than 1 crore (101 lakh) shares were traded that day. This is 25 times more than the normal number of shares traded in two weeks. This means many investors were interested in FACT on that day. Other fertilizer company stocks also went up. So, the full fertilizer sector did well. People are hopeful about these companies. That may be because of good news, strong business plans, or support from the government. Even though the stock price went up, some experts are cautious. Websites like TradingView gave a “sell” sign. This means the stock may be too expensive now. It may not rise more. It could also fall. The market value of FACT is now over ₹49,000 crore. This is a big amount. FACT gives a small dividend of 0.13%. This means if you hold the stock, you get a small return from the company. Also, the price-to-earnings (PE) ratio is high. This shows the stock price is high compared to the company’s earnings. In short, the stock price of FACT went up a lot. Many people bought it. But the stock may be expensive now. So it is good to be careful and watch the stock closely.
Potentials:
Fertilizers and Chemicals Travancore Ltd (FACT) has many plans. The company wants to make more fertilizers. Right now, it makes 10 lakh metric tons every year. FACT wants to increase this to 15 lakh metric tons. For this, it will spend over ₹1,000 crore. This money will be used to buy new machines and fix old machines. This will help the company make more fertilizers and earn more money. FACT also wants to use clean energy. It is working with Oil India Limited to make a small green hydrogen plant in Kochi. Green hydrogen is a clean fuel. It is made using sunlight or wind. This fuel does not cause pollution. This will help FACT protect the environment. FACT is also planning to make electricity using sunlight. It wants to build a solar power plant at Ambalamedu. The plant will be built on top of a water area. This will give clean energy and reduce the use of dirty fuels. FACT has made a new type of liquid fertilizer. It is called Magnesium Fortified Calcium Nitrate. It helps plants take in nutrients better. It helps plants grow faster and healthier. The government has approved this fertilizer. FACT has also improved one of its plants in Udyogamandal. It changed some things in the factory to make more Ammonium Sulphate. Now the plant makes 100 tons more every day. These changes were made by FACT’s team. All these plans will help FACT grow. It will make more fertilizers. It will use clean energy. It will help farmers. It will also protect nature.
Analyst Insights:
- Market capitalisation: ₹ 49,232 Cr.
- Current Price: ₹ 761
- 52-Week High/Low: ₹ 1,187 / 565
- P/E Ratio: 589
- Dividend Yield: 0.13%
- Return on Capital Employed (ROCE): 16.9%
- Return on Equity (ROE): 29.4%
FACT (Fertilizers and Chemicals Travancore Ltd) is facing many problems in its business and finances. In Q3 FY25, the company’s profit fell by 73.6%. It made only ₹8 crore profit, compared to ₹30 crore last year. Its revenue also went down by 13.5% to ₹949 crore. This means the company is selling less or facing higher costs. In the past 12 months, the company had a total loss of ₹91 crore. Its operating profit margin is also low at 3.32%, which shows the company is not controlling its costs well. The stock is very expensive. Its price-to-earnings (P/E) ratio is 589, and its price-to-book (P/B) ratio is 38. These numbers are very high and do not match the company’s weak results. Other companies in the same sector, like Coromandel International and Chambal Fertilizers, are doing better. They have higher profits and better margins. FACT also has a low interest coverage ratio. This means it may have trouble paying interest on its loans. The company had good performance in the past. Its 3-year return on equity (ROE) is 56.4%. But this is from earlier years. Now, its performance is getting worse. The company is in an important sector, but unless it improves its profits and sales, the stock may not do well in the future.