Recent Price Movement and Market Context
On 5 December 2025, Chambal Fertilisers & Chemicals recorded its lowest price in the past year at Rs.428.1. This level represents a notable drop from its 52-week high of Rs.742.45. Over the last four trading sessions, the stock has registered a cumulative return of -2.97%, underperforming its sector by 0.34% on the day of the new low. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
In contrast, the broader market has shown strength. The Sensex, after an initial negative opening of 139.84 points, rebounded sharply by 481.68 points to close at 85,607.16, just 0.64% shy of its 52-week high of 86,159.02. The index is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a bullish trend. Mega-cap stocks have been the primary drivers of this market strength, highlighting a divergence between large-cap and select mid-cap performances.
Long-Term and Recent Performance Analysis
Chambal Fertilisers & Chemicals has shown a one-year return of -21.42%, contrasting with the Sensex’s positive 4.70% return over the same period. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index across one-year, three-year, and three-month timeframes. The company’s net sales have grown at an annual rate of 8.41% over the past five years, while operating profit has expanded at a more modest 2.27% annually during the same period. These figures suggest a subdued growth trajectory relative to broader market expectations.
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Financial Strength and Operational Metrics
Despite the recent price decline, Chambal Fertilisers & Chemicals exhibits several positive financial indicators. The company’s return on capital employed (ROCE) stands at a robust 25.78%, reflecting efficient use of capital in generating earnings. Additionally, the debt to EBITDA ratio is a low 0.92 times, indicating a strong capacity to service debt obligations without undue strain.
In the quarter ending September 2025, the company reported net sales of Rs.6,412.76 crore, representing a growth of 47.55% compared to the previous period. Profit before depreciation, interest, and taxes (PBDIT) reached a quarterly high of Rs.841.73 crore, while cash and cash equivalents at the half-year mark stood at Rs.4,990.10 crore, the highest recorded for the company. These figures highlight operational cash strength and profitability despite the stock’s downward price movement.
Valuation and Institutional Holding
Chambal Fertilisers & Chemicals carries a price-to-book value of 1.8, which is considered fair relative to its return on equity (ROE) of 18.9%. The stock trades at a premium compared to the average historical valuations of its peers in the fertilisers sector. Over the past year, while the stock price has declined by 21.42%, the company’s profits have increased by 20.9%, resulting in a price/earnings to growth (PEG) ratio of 0.5. This metric suggests that earnings growth has outpaced the decline in share price over the period.
Institutional investors hold a significant stake in the company, accounting for 22.35% of the shareholding. These investors typically possess greater resources and analytical capabilities to assess company fundamentals, which may influence trading patterns and valuation perceptions.
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Sectoral and Market Considerations
The fertilisers sector has faced a mixed environment, with some companies experiencing volatility due to commodity price fluctuations, regulatory changes, and demand-supply dynamics. Chambal Fertilisers & Chemicals’ recent price movement may reflect these broader sectoral pressures, as well as company-specific factors influencing investor sentiment.
While the Sensex and mega-cap stocks have demonstrated strength, mid-cap and small-cap stocks such as Chambal Fertilisers & Chemicals have encountered headwinds. The divergence in performance underscores the varied impact of market conditions across different segments of the equity market.
Summary of Key Metrics
To summarise, Chambal Fertilisers & Chemicals’ stock price has reached Rs.428.1, its lowest level in 52 weeks, following a period of sustained decline. The company’s financials show steady sales growth and strong profitability metrics, including a high ROCE and manageable debt levels. However, the stock’s valuation premium and recent price underperformance relative to the Sensex and sector peers highlight ongoing challenges in market perception.
Investors and market participants continue to monitor the stock’s price action in the context of broader market trends and sector developments.
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