Faze Three Ltd. (FAZE3Q) AI Stock Analysis

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Faze Three Ltd.

(NSE:FAZE3Q)

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Rating:51Neutral

Price Target:INR 433.00▲(1.04% Upside)

Action:reiterated

Date:09/22/26

The score is held back primarily by weak cash generation (low cash conversion and deeply negative free cash flow) and meaningful margin deterioration despite revenue growth, with rising leverage adding risk. Technicals further pressure the score due to a strong downtrend and bearish momentum signals. Valuation is also a constraint with a high P/E and no dividend yield data to offset it.

Positive Factors

Revenue GrowthRevenue continued to scale in the latest fiscal year, demonstrating that the company is expanding sales despite operating in a manufacturing business. Sustained top-line growth can support greater utilization and provide a base for recovery if profitability and cash conversion improve.

Negative Factors

Margin CompressionThe sharp deterioration in gross margin and the concurrent decline in net margin show that higher sales are not translating into proportionate profitability. If cost pressure or adverse product mix persists, earnings resilience and the company’s ability to reinvest will remain constrained.

Faze Three Ltd. (FAZE3Q) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 10.39B
Dividend Yield: ―
Average Volume (3M): 1,953
Price to Earnings (P/E): 34.2
Beta (1Y): 1.38
Revenue Growth: 24.93%
EPS Growth: -33.99%
Country: India
Employees: 2,246
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

Faze Three Ltd. Business Overview & Revenue Model

Company Description

Based in Mumbai, India, Faze Three Limited, established in 1982, is a key manufacturer and distributor of an extensive range of home textile items and automotive fabrics. Its comprehensive product portfolio for the home includes various soft furnishi...

How the Company Makes Money

Faze Three Ltd. primarily makes money by manufacturing and selling textile fabrics to customers on a business-to-business basis. Revenue is generated from orders for industrial/technical textile materials produced in its facilities, with pricing typi...

Faze Three Ltd. Financial Statement Overview

Summary

Revenue growth remains solid (FY2026 up ~14% YoY), but profitability weakened materially (gross margin ~30% vs. ~50% prior year; net margin ~3.6% vs. ~5.9%). Cash flow is the key drag: operating cash conversion is very low (~0.13 of net income) and free cash flow is deeply negative in FY2025–FY2026 (~-0.8bn each year). Leverage is still moderate (debt-to-equity ~0.61) but has risen, reducing flexibility if margins and cash generation don’t recover.

Income Statement

64Positive

Balance Sheet

70Positive

Cash Flow

39Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	9.40B	9.23B	6.90B	5.65B	5.31B	4.77B
Gross Profit	3.21B	2.80B	3.48B	1.05B	2.45B	2.10B
EBITDA	795.20M	825.50M	922.30M	943.00M	999.30M	867.20M
Net Income	304.40M	335.70M	406.60M	465.90M	583.00M	510.80M
Balance Sheet
Total Assets	0	8.19B	6.86B	5.93B	5.47B	4.88B
Cash, Cash Equivalents and Short-Term Investments	308.50M	308.50M	195.80M	825.60M	1.16B	666.30M
Total Debt	0	2.75B	1.92B	1.70B	1.74B	1.67B
Total Liabilities	-4.52B	3.67B	2.66B	2.13B	2.12B	2.09B
Stockholders Equity	4.52B	4.52B	4.20B	3.81B	3.35B	2.78B
Cash Flow
Free Cash Flow	-298.50M	-818.90M	-803.50M	-232.30M	553.20M	-391.70M
Operating Cash Flow	365.40M	392.80M	122.70M	370.10M	1.10B	-65.30M
Investing Cash Flow	-660.70M	-1.19B	-399.70M	-454.50M	-438.30M	-508.20M
Financing Cash Flow	302.50M	818.30M	35.50M	-187.60M	-60.40M	608.40M

Faze Three Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price428.55

Price Trends

50DMA450.68Negative

100DMA507.20Negative

200DMA483.46Negative

Market Momentum

MACD-8.61Negative

RSI49.24Neutral

STOCH46.73Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:FAZE3Q, the sentiment is Positive. The current price of 428.55 is above the 20-day moving average (MA) of 422.39, below the 50-day MA of 450.68, and below the 200-day MA of 483.46, indicating a neutral trend. The MACD of -8.61 indicates Negative momentum. The RSI at 49.24 is Neutral, neither overbought nor oversold. The STOCH value of 46.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:FAZE3Q.

Faze Three Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:FAZE3Q against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:PASHUPATI	69Neutral	INR 21.25B	149.39	―	0.04%	―	―
IN:RAJRILTD	65Neutral	INR 10.78B	31.45	―	―	23.88%	48.90%
IN:RUBYMILLS	62Neutral	INR 15.86B	36.67	―	0.53%	43.42%	-5.19%
IN:INDORAMA	61Neutral	INR 19.11B	9.05	―	―	-4.69%	48.44%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:AYMSYNTEX	52Neutral	INR 14.59B	42.60	―	―	5.52%	2206.11%
IN:FAZE3Q	51Neutral	INR 10.54B	34.18	―	―	24.93%	-33.99%

* General Sector Average

Performance Comparison

IN:FAZE3Q and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:FAZE3Q	Faze Three Ltd.	428.55	-50.30	-10.50%
IN:AYMSYNTEX	AYM Syntex Limited	248.15	72.70	41.44%
IN:INDORAMA	Indo Rama Synthetics (India) Limited	73.20	-0.63	-0.85%
IN:PASHUPATI	Pashupati Cotspin Ltd.	134.60	53.60	66.16%
IN:RAJRILTD	Raj Rayon Industries Limited	19.39	-5.21	-21.18%
IN:RUBYMILLS	Ruby Mills Limited	474.35	244.11	106.02%

Faze Three Ltd. Corporate Events

Faze Three reshapes board with new independent director as senior member completes tenure

Aug 11, 2026

Faze Three Limited has announced a change in its board composition, appointing chartered accountant Mohit Dinesh Solanki as an Additional Non-Executive Independent Director with effect from 17 August 2026. His appointment is initially valid until the...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 22, 2026

Faze Three Ltd. AI Stock Analysis