Stock Price Movement and Market Context
On 2 December 2025, Chambal Fertilisers & Chemicals recorded its lowest price in the past year at Rs.434.1. This price point represents a decline of 1.44% on the day, underperforming its sector by 0.33%. 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 a persistent downward trend in price momentum.
In contrast, the broader market index, the Sensex, opened lower by 316.39 points and was trading at 85,164.88, down 0.56% on the day. Despite this dip, the Sensex remains close to its 52-week high of 86,159.02, just 1.17% away, and is positioned above its 50-day moving average, which itself is above the 200-day moving average, signalling a generally bullish trend for the market overall.
Comparative Performance Over One Year
Chambal Fertilisers & Chemicals has experienced a negative return of 17.05% over the last twelve months, contrasting with the Sensex's positive return of 6.12% during the same period. This divergence highlights the stock's relative underperformance within the broader market context. The stock's 52-week high was Rs.742.45, indicating a substantial gap between the current price and its peak over the past year.
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Financial Growth and Profitability Metrics
Over the past five years, Chambal Fertilisers & Chemicals has shown a net sales growth at an annual rate of 8.41%, while operating profit has moved at a rate of 2.27% annually. These figures suggest a modest expansion in revenue with relatively limited growth in operating profitability over the medium term.
Despite the subdued growth rates, the company demonstrates strong management efficiency, reflected in a return on capital employed (ROCE) of 25.78%. This indicates effective utilisation of capital resources in generating earnings before interest and taxes.
Debt and Liquidity Position
The company maintains a low Debt to EBITDA ratio of 0.92 times, signalling a manageable level of debt relative to earnings before interest, taxes, depreciation, and amortisation. This ratio suggests a capacity to service debt obligations comfortably.
Cash and cash equivalents stood at Rs.4,990.10 crore as of the half-year period ending September 2025, representing the highest level recorded in recent periods. This liquidity position provides a buffer for the company amid fluctuating market conditions.
Quarterly Sales and Profitability
In the quarter ending September 2025, Chambal Fertilisers & Chemicals reported net sales of Rs.6,412.76 crore, the highest quarterly figure recorded. Correspondingly, profit before depreciation, interest, and taxes (PBDIT) reached Rs.841.73 crore, also the highest quarterly amount noted. These figures indicate a strong quarterly operational performance despite the stock's price decline.
Valuation and Returns
The company’s return on equity (ROE) is 18.9%, which aligns with a fair valuation given its price-to-book value of 1.8. The stock trades at a premium relative to the average historical valuations of its peers in the fertiliser sector. Over the past year, while the stock price has declined by 17.05%, profits have increased by 20.9%, resulting in a price/earnings to growth (PEG) ratio of 0.5.
Shareholding Pattern
Institutional investors hold 22.35% of Chambal Fertilisers & Chemicals’ shares. These investors typically possess greater resources and analytical capabilities to assess company fundamentals compared to retail investors.
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Summary of Performance Trends
Chambal Fertilisers & Chemicals has underperformed the BSE500 index over the last three years, one year, and three months. The stock’s returns have not kept pace with broader market indices or its sector peers, reflecting a subdued market valuation despite some positive financial indicators.
The stock’s current trading below all major moving averages further emphasises the prevailing downward price trend. However, the company’s strong cash position, manageable debt levels, and high management efficiency provide a foundation for operational stability.
Sector and Industry Context
Operating within the fertilisers industry, Chambal Fertilisers & Chemicals faces sector-specific dynamics that influence pricing and demand. While the broader market, as represented by the Sensex, maintains a generally bullish stance, the stock’s relative performance indicates challenges in aligning with this trend.
Conclusion
The new 52-week low of Rs.434.1 for Chambal Fertilisers & Chemicals marks a notable point in the stock’s price trajectory. The company’s financial data presents a mixed picture, with modest sales growth, strong management efficiency, and solid liquidity contrasting with a declining stock price and underperformance relative to market benchmarks. Investors and market participants may continue to monitor these factors as part of their ongoing assessment of the stock’s position within the fertilisers sector.
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