Can I buy Fervent Synergies Ltd stock
10/13/2024 12:50am
**Fervent Synergies Ltd. (FERV) stock analysis and prediction**:
1. **Financial Performance and Ratios**:
- Fervent Synergies has reported a significant rise in sales, with a 1569.54% increase in the March 2024 quarter, amounting to Rs 14.85 crore. However, this is offset by a substantial net loss of Rs 13.41 crore for the same period.
- The company's net profit margin has been negative, with a low of -90.29% and an average of -52.82% over the past years.
- Fervent Synergies has a low return on equity (ROE) of -10.4% over the last 3 years.
- The firm's EPS (Earnings Per Share) has been volatile, with a negative EPS of -4.47 in the most recent quarter.
2. **Market Sentiment and Analysts' View**:
- The stock has been volatile, with a significant decline of -17.01% in March 2025, followed by a recovery of 5.27% in April 2025.
- The consensus rating for Fervent Synergies is currently unavailable.
- The stock's PE ratio is -5.08857808857809, which is low and suggests the stock may be undervalued.
- The P/B ratio is 1.63, indicating the stock is trading at a premium to its book value.
- The P/S ratio is 2.75, suggesting the stock is trading at a reasonable valuation relative to its sales.
3. **Technical Indicators**:
- The stock's 5-day moving average is Rs 19.418, the 10-day is Rs 19.979, and the 50-day is Rs 21.183.
- The Moving Average Convergence Divergence (MACD) is -0.01, the Relative Strength Index (RSI) is 43.33, and the Stochastic KDJ is 56.67.
4. **Market Position and Outlook**:
- Fervent Synergies has a low interest coverage ratio and a low return on assets, indicating inefficiencies in managing assets to generate profit.
- The company's free cash flow per share is Rs 0.00, which may not be attractive for income-focused investors.
- Despite these challenges, the stock has shown some positive momentum with a recent increase of 6.65% in October 2025.
In conclusion, while there are some positive indicators, such as the potential for growth based on revenue and the low P/E ratio, the negative aspects, including significant losses, negative profit margins, and a lack of positive consensus, suggest that potential investors should exercise caution. The stock's volatility and the lack of a clear, positive trend in profitability may make it a higher-risk investment. Investors should consider their risk tolerance and investment goals before deciding to buy Fervent Synergies Ltd. stock.