Fairchem Organics shares dropped 11% on November 13 as the company reported disappointing Q2 earnings. The specialty chemicals firm saw a 61% year-on-year (YoY) drop in consolidated net profit to Rs 4.01 crore, while revenue fell 9% YoY to Rs 138 crore. EBITDA also decreased by 48% YoY to Rs 8.74 crore, with margins shrinking to 6.3% from 11.05% in the same period last year.
Company Background and Market Position
Fairchem Organics, an end-to-end by-product refining company that refines oil refining mills’ by-products into chemicals used in paints, inks, and the preparation of Natural Vitamin E-Tocopherol, was acquired by Fairfax India Holdings in 2015.
Stock Performance
By 11:14 AM, the stock was trading at Rs 876.95 on the NSE, down 11%. The stock has underperformed this year, losing around 31% YTD, while the Nifty index gained about 9%.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
Source: Moneycontrol
News Desk
