Stock Price Movement and Market Context
On 31 Dec 2025, Chemfab Alkalis Ltd’s share price touched an intraday low of Rs.397.35, representing its lowest level in the past year. Despite this, the stock managed to outperform its sector by 2.02% during the trading session and reversed a two-day consecutive decline by gaining to an intraday high of Rs.420.25, up 3.89% from the previous close. However, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent weakness in its price trend.
In contrast, the broader market showed resilience with the Sensex opening 118.50 points higher and trading at 84,939.73, up 0.31%. The Sensex is currently just 1.44% shy of its 52-week high of 86,159.02 and is supported by bullish moving averages, with the 50-day DMA positioned above the 200-day DMA. Small-cap stocks led the market rally, with the BSE Small Cap index gaining 0.78% on the day.
Financial Performance and Valuation Concerns
Chemfab Alkalis Ltd’s financial results have contributed to the stock’s subdued performance. The company reported a decline in net sales by 16.36% in the latest quarter, with quarterly net sales falling to Rs.76.56 crore, down 12.3% compared to the previous four-quarter average. Profit before tax (PBT) registered a sharp fall of 316.1%, reaching a loss of Rs.3.09 crore, while the net profit after tax (PAT) declined by 274.8% to a loss of Rs.2.01 crore in the same period.
Over the last five years, the company’s operating profit has contracted at an annualised rate of 6.47%, reflecting challenges in sustaining growth. The return on capital employed (ROCE) stands at a modest 1.8%, while the enterprise value to capital employed ratio is 1.4, indicating a relatively expensive valuation compared to peers’ historical averages. This valuation premium, despite the company’s subdued profitability, has been a factor in the stock’s underperformance.
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Long-Term and Recent Performance Trends
The stock has delivered a negative return of 59.72% over the past year, significantly underperforming the Sensex, which gained 8.70% during the same period. Profitability has also deteriorated, with profits falling by 75.8% year-on-year. The stock’s 52-week high was Rs.1,100, highlighting the extent of the decline to the current low.
In addition to the one-year underperformance, Chemfab Alkalis Ltd has lagged behind the BSE500 index over the last three years, one year, and three months, indicating persistent challenges in maintaining competitive performance within the broader market.
Shareholding and Market Perception
Despite the company’s size, domestic mutual funds hold a minimal stake of just 0.25%, which may reflect cautious positioning given the company’s recent financial results and valuation concerns. Mutual funds typically conduct thorough research and their limited exposure could indicate reservations about the company’s current price levels or business outlook.
On a positive note, Chemfab Alkalis Ltd maintains a low average debt-to-equity ratio of 0.10 times, suggesting a conservative capital structure with limited leverage risk.
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Mojo Score and Rating Update
Chemfab Alkalis Ltd currently holds a Mojo Score of 20.0, reflecting its overall fundamental and market performance. The company’s Mojo Grade was downgraded from Sell to Strong Sell on 7 July 2025, signalling a deteriorated outlook based on MarketsMOJO’s comprehensive evaluation framework. The market capitalisation grade stands at 4, indicating a relatively modest market size within its sector.
Summary of Key Metrics
The stock’s recent price action and financial results underscore a challenging environment for Chemfab Alkalis Ltd. Key metrics include:
- 52-week low price: Rs.397.35
- 52-week high price: Rs.1,100
- One-year stock return: -59.72%
- Net sales decline (latest quarter): -16.36%
- PBT decline (latest quarter): -316.1%
- PAT decline (latest quarter): -274.8%
- Operating profit CAGR (5 years): -6.47%
- ROCE: 1.8%
- Debt to equity ratio: 0.10 times
These figures illustrate the pressures on the company’s earnings and valuation, which have contributed to the stock’s current low price level.
Market Position and Sector Comparison
Within the commodity chemicals sector, Chemfab Alkalis Ltd’s valuation appears elevated relative to peers, despite its subdued profitability and declining sales. The stock’s premium valuation multiples, combined with weak earnings trends, have weighed on investor sentiment and market performance.
While the broader market and small-cap segments have shown strength recently, Chemfab Alkalis Ltd’s share price remains under pressure, reflecting company-specific factors rather than sector-wide trends.
Conclusion
Chemfab Alkalis Ltd’s stock reaching a 52-week low of Rs.397.35 highlights the ongoing challenges faced by the company in terms of financial performance and market valuation. The stock’s underperformance relative to the Sensex and its sector peers, coupled with deteriorating profitability and cautious institutional participation, have contributed to this significant price decline. The company’s conservative debt profile remains a positive aspect amid these headwinds.
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