Chambal Fertilisers Reports Record Cash Flow and Strong ROCE in Q2 FY24-25

Chambal Fertilisers & Chemicals has recently undergone an adjustment in evaluation, reflecting the company's current market dynamics and operational metrics. The company has demonstrated notable financial strength, particularly in its second quarter of FY24-25, where it reported a return on capital employed (ROCE) of 24.32%, indicating effective management efficiency.
In the third quarter of 2024, Chambal Fertilisers achieved a significant milestone with its highest operating cash flow recorded at Rs 3,326.75 crore, alongside a record PBDIT of Rs 790.16 crore. These figures highlight the company's robust operational capabilities and its position within the fertilizers sector.

The stock is currently situated in a mildly bullish range, buoyed by favorable technical indicators such as MACD and Bollinger Bands. While the valuation appears reasonable with a price-to-book ratio of 2.4 and a return on equity (ROE) of 18.8, the company has faced challenges in long-term growth, as evidenced by an annual operating profit increase of 5.39% over the past five years. Institutional holdings have also seen a slight uptick, now standing at 23.97%, reflecting a modest increase from the previous quarter.

Over the past year, Chambal Fertilisers has outperformed the broader market, achieving a return of 34.34% compared to the BSE 500's 9.00%. This performance underscores the company's competitive positioning within the industry.

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