Stock Performance and Market Context
On 30 Dec 2025, Chemfab Alkalis Ltd’s stock touched an intraday low of Rs.412.25, representing a 3.1% drop during the session. The stock has been falling for two consecutive days, losing 4.41% over this period. It underperformed the Commodity Chemicals sector by 0.8% today and is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained bearish momentum.
In contrast, the Sensex opened lower by 94.55 points and was trading at 84,545.91, down 0.18%. The benchmark index remains close to its 52-week high of 86,159.02, just 1.91% away, highlighting the divergence between the broader market’s relative strength and Chemfab Alkalis’ weakness.
Long-Term and Recent Financial Performance
Chemfab Alkalis has experienced a challenging financial period. Over the past year, the stock has delivered a negative return of 60.29%, starkly contrasting with the Sensex’s positive 8.05% gain. The company’s 52-week high was Rs.1,100, underscoring the steep decline in share price.
Operating profit has contracted at an annual rate of 6.47% over the last five years, indicating subdued growth prospects. The September 2025 quarterly results were notably weak, with net sales falling by 16.36% year-on-year. Profit before tax (PBT) for the quarter was negative at Rs. -3.09 crore, a decline of 316.1% compared to the previous four-quarter average. Similarly, net profit after tax (PAT) dropped by 274.8% to Rs. -2.01 crore, while net sales for the quarter declined by 12.3% relative to the prior four-quarter average.
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Valuation and Capital Efficiency
The company’s return on capital employed (ROCE) stands at a modest 1.8%, reflecting limited efficiency in generating returns from its capital base. Despite this, the stock carries a relatively high valuation with an enterprise value to capital employed ratio of 1.5, which is above the average historical valuations of its peers in the Commodity Chemicals sector. This premium valuation contrasts with the company’s subdued profitability and declining sales.
Over the past year, profits have fallen by 75.8%, further emphasising the financial strain. The stock’s Mojo Score is 19.0, categorised as a Strong Sell, an upgrade from the previous Sell rating as of 7 July 2025. The Market Cap Grade is 4, indicating a relatively small market capitalisation within its sector.
Shareholding and Market Participation
Despite its size, domestic mutual funds hold a minimal stake of just 0.25% in Chemfab Alkalis Ltd. Given that domestic mutual funds typically conduct thorough on-the-ground research, this limited exposure may reflect reservations about the company’s current valuation or business fundamentals.
Notably, the company maintains a low average debt-to-equity ratio of 0.10 times, suggesting a conservative capital structure with limited leverage. This low indebtedness, however, has not translated into improved financial performance or investor confidence.
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Comparative Performance and Sector Positioning
Over the last three years, Chemfab Alkalis has consistently underperformed the BSE500 index, as well as its own sector. The stock’s negative returns over one year and three months highlight persistent challenges in regaining investor confidence and market share. The Commodity Chemicals sector, while cyclical, has seen other players maintain or improve their valuations, underscoring Chemfab Alkalis’ relative underperformance.
Trading well below all major moving averages, the stock’s technical indicators align with the fundamental concerns, reinforcing the current downtrend. The gap between the stock’s 52-week high of Rs.1,100 and the current low of Rs.412.25 illustrates the scale of the decline.
Summary of Key Metrics
To summarise, Chemfab Alkalis Ltd’s stock has reached a 52-week low of Rs.412.25 after a sustained period of decline. The company’s financial results reveal falling sales and profits, with quarterly PBT and PAT deeply negative. Valuation metrics indicate a premium despite weak returns on capital and shrinking profitability. Limited institutional participation and underperformance relative to benchmarks further characterise the stock’s current status.
While the company’s low debt levels provide some balance sheet stability, the overall picture remains subdued as the stock continues to trade below all significant moving averages and has been downgraded to a Strong Sell rating by MarketsMOJO.
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