Chemfab Alkalis Falls to 52-Week Low of Rs.481.1 Amidst Continued Downtrend

On the trading day, Chemfab Alkalis recorded an intraday low of Rs.481.1, representing a 7.7% drop from previous levels. The stock has been on a downward trajectory for two consecutive days, cumulatively delivering a negative return of 4.1% during this period. This decline has outpaced the sector’s performance, with Chemfab Alkalis underperforming by 1.54% today. The stock’s intraday volatility was notably high at 5.66%, calculated from its weighted average price, reflecting increased price fluctuations within the session.

Technical indicators reveal that Chemfab Alkalis is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests sustained downward momentum in the stock’s price over multiple time frames.

In comparison, the benchmark Sensex opened positively with a gain of 91.42 points but later declined by 179.09 points, currently trading at 84,863.28, down 0.1%. The Sensex remains close to its 52-week high of 85,290.06, just 0.5% away, and is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish trend in the broader market.

Over the past year, Chemfab Alkalis has underperformed significantly against the Sensex. While the Sensex has delivered a return of 9.71%, Chemfab Alkalis has recorded a negative return of 48.28%. The stock’s 52-week high was Rs.1,186.05, highlighting the extent of the decline to the current low of Rs.481.1.

Financially, the company’s long-term growth metrics have shown subdued trends. Operating profit has exhibited an annual rate of decline of 6.47% over the last five years. The company’s recent quarterly results, declared in September 2025, showed a fall in net sales by 16.36%, contributing to a series of negative results over the last ten consecutive quarters.

Specifically, the Profit Before Tax excluding other income (PBT LESS OI) for the latest quarter stood at Rs. -3.09 crore, reflecting a decline of 316.1% compared to the previous four-quarter average. Similarly, the Profit After Tax (PAT) was Rs. -2.01 crore, down 274.8% relative to the same benchmark. Net sales for the quarter were Rs. 76.56 crore, falling by 12.3% against the previous four-quarter average.

Valuation metrics indicate a Return on Capital Employed (ROCE) of 2%, with an enterprise value to capital employed ratio of 1.8, suggesting a relatively expensive valuation compared to peers’ historical averages. Despite the company’s size, domestic mutual funds hold a modest stake of only 0.25%, which may reflect their evaluation of the company’s current price and business fundamentals.

When compared to the broader market, Chemfab Alkalis has also lagged behind the BSE500 index, which has generated returns of 8.57% over the last year. The stock’s negative returns of 48.28% highlight its relative underperformance within the Indian equity landscape.

On the balance sheet front, the company maintains a low average debt-to-equity ratio of 0.07 times, indicating limited leverage. This conservative capital structure contrasts with the stock’s valuation and performance metrics.

In summary, Chemfab Alkalis’ recent fall to a 52-week low of Rs.481.1 reflects a continuation of a multi-quarter trend characterised by declining sales, negative profitability, and subdued long-term growth. The stock’s technical indicators and valuation metrics further underscore the challenges faced by the company within the Commodity Chemicals sector, even as the broader market maintains a more positive trajectory.

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