Recent Price Movement and Market Context
On 4 December 2025, Chambal Fertilisers & Chemicals recorded its lowest price in the past year at Rs.429.85. The stock has been on a downward trajectory for the last three sessions, cumulatively registering a return of -2.21% over this period. This decline occurred despite the broader market's positive performance, with the Sensex closing at 85,257.22, up 0.18% after recovering from an initial negative opening.
Notably, the Sensex is trading close to its 52-week high of 86,159.02, just 1.06% away, supported by mega-cap stocks and trading above its 50-day and 200-day moving averages. In contrast, Chambal Fertilisers & Chemicals is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day, indicating a weaker technical position relative to the broader market.
Performance Over the Past Year
Over the last twelve months, Chambal Fertilisers & Chemicals has delivered a return of -18.97%, underperforming the Sensex, which has shown a positive return of 5.30% during the same period. The stock’s 52-week high was Rs.742.45, highlighting a substantial gap between its peak and current levels. This underperformance extends beyond the one-year horizon, with the stock also lagging behind the BSE500 index over the past three years and the recent three-month period.
Financial Growth and Profitability Metrics
Examining the company’s financials reveals modest growth in net sales and operating profit over the last five years. Net sales have shown an annual growth rate of 8.41%, while operating profit has moved at a slower pace of 2.27% annually. These figures suggest a subdued expansion in revenue and earnings generation capacity over the medium term.
Despite these growth rates, Chambal Fertilisers & Chemicals demonstrates strong management efficiency, reflected in a return on capital employed (ROCE) of 25.78%. This indicates effective utilisation of capital resources to generate earnings. Additionally, the company maintains a low Debt to EBITDA ratio of 0.92 times, signalling a robust ability to service its debt obligations.
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Quarterly Highlights and Cash Position
The company’s recent quarterly results show some of its highest figures to date. Net sales for the quarter reached Rs.6,412.76 crores, while PBDIT (profit before depreciation, interest, and taxes) stood at Rs.841.73 crores. The half-year cash and cash equivalents balance was reported at Rs.4,990.10 crores, marking a peak in liquidity levels. These figures indicate that while the stock price has declined, the company’s underlying business continues to generate substantial revenue and maintain a strong cash position.
Valuation and Institutional Holdings
Chambal Fertilisers & Chemicals carries a price-to-book value of 1.8, which is considered fair relative to its peers, though it trades at a premium compared to average historical valuations within the sector. The company’s return on equity (ROE) stands at 18.9%, supporting this valuation level. Over the past year, profits have risen by 20.9%, despite the stock’s negative return, resulting in a price/earnings to growth (PEG) ratio of 0.5.
Institutional investors hold 22.35% of the company’s shares, reflecting a significant stake by entities with extensive resources and analytical capabilities. This level of institutional ownership may influence the stock’s trading dynamics and valuation considerations.
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Sector and Industry Positioning
Operating within the fertilizers industry and sector, Chambal Fertilisers & Chemicals faces competitive pressures and market dynamics that influence its stock performance. While the broader sector has shown resilience, the company’s stock has not mirrored this trend in recent months. The divergence between sector performance and the stock’s trajectory highlights the importance of company-specific factors in price movements.
Summary of Key Factors Affecting Stock Price
The stock’s fall to its 52-week low can be attributed to a combination of subdued long-term growth rates, underperformance relative to market benchmarks, and technical indicators showing the stock trading below all major moving averages. Despite strong management efficiency and a solid balance sheet, the stock price reflects caution among market participants. The company’s recent quarterly results and cash position remain robust, but these have not translated into upward momentum in the share price.
Conclusion
Chambal Fertilisers & Chemicals’ new 52-week low of Rs.429.85 marks a notable point in its recent trading history. While the broader market and sector have shown positive trends, the stock’s performance has diverged, reflecting a complex interplay of financial metrics, valuation considerations, and market sentiment. Investors and market watchers will continue to monitor the stock’s movement in the context of its financial fundamentals and sector developments.
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