The stock of Chemfab Alkalis, a key player in the commodity chemicals industry, recorded an intraday low of Rs.481.1, representing a 7.7% drop during the trading session. This decline comes after two consecutive days of losses, with the stock delivering a cumulative return of -4.1% over this period. The day’s trading was marked by high volatility, with an intraday price fluctuation of 5.66% based on the weighted average price.
In comparison to its sector peers, Chemfab Alkalis underperformed, with a day’s performance lagging the commodity chemicals sector by 1.54%. 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 pressure on the price.
Market-wide, the broader Sensex index opened positively, gaining 91.42 points initially, but later reversed to close 179.09 points lower at 84,863.28, a marginal decline of 0.1%. Despite this, the Sensex remains close to its 52-week high of 85,290.06, trading above its 50-day and 200-day moving averages, signalling a generally bullish trend in the broader market.
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Over the last year, Chemfab Alkalis has experienced a significant decline in value, with a total return of -48.28%, contrasting sharply with the Sensex’s positive return of 9.71% over the same period. The stock’s 52-week high was Rs.1,186.05, highlighting the extent of the recent price erosion.
Financially, the company’s performance has shown persistent challenges. Operating profit has exhibited a negative compound annual growth rate of -6.47% over the past five years. The latest quarterly results, declared in September 2025, reflected a fall in net sales by 16.36%, contributing to a series of ten consecutive quarters with negative results.
Specifically, the Profit Before Tax excluding other income (PBT LESS OI) for the recent quarter stood at Rs. -3.09 crore, a decline of 316.1% compared to the average of the previous four quarters. Similarly, the Profit After Tax (PAT) was Rs. -2.01 crore, down by 274.8% relative to the prior four-quarter average. Net sales for the quarter were Rs. 76.56 crore, showing a 12.3% reduction against the previous four-quarter average.
Valuation metrics indicate a relatively expensive position for Chemfab Alkalis. The company’s Return on Capital Employed (ROCE) is at 2%, while the Enterprise Value to Capital Employed ratio stands at 1.8, suggesting a premium valuation compared to its peers’ historical averages. Despite the company’s size, domestic mutual funds hold a modest stake of only 0.25%, which may reflect cautious positioning given the current price and business environment.
In terms of leverage, Chemfab Alkalis maintains a low average debt-to-equity ratio of 0.07 times, indicating limited reliance on debt financing. This conservative capital structure contrasts with the stock’s performance and valuation challenges.
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When compared to the broader market, Chemfab Alkalis has underperformed notably. The BSE500 index has generated returns of 8.57% over the past year, while Chemfab Alkalis has recorded a negative return of -48.28%. This divergence underscores the stock’s relative weakness within the commodity chemicals sector and the wider market.
The stock’s recent adjustment in evaluation and the revision in its score to a lower grade reflect the ongoing challenges faced by the company. The Mojo Score currently stands at 19.0, with a grade classified as Strong Sell as of 7 July 2025, following a previous Sell grade. The trigger for the latest evaluation adjustment was the 52-week low reached on 18 November 2025.
In summary, Chemfab Alkalis has experienced a marked decline in its stock price, reaching a new 52-week low of Rs.481.1 amid a backdrop of subdued financial performance and valuation concerns. The stock’s trading below all major moving averages and its underperformance relative to sector and market benchmarks highlight the challenges it currently faces within the commodity chemicals industry.
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