Stock Price Movement and Market Context
On 10 Dec 2025, Chemfab Alkalis touched Rs.458, its lowest level in the past year. This decline follows three consecutive days of falling prices, although the stock showed a modest gain on the day it hit this low. 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 momentum.
In contrast, the broader market has shown resilience. The Sensex opened flat but climbed 226.73 points to close at 84,834.22, a 0.2% rise, and remains within 1.56% of its 52-week high of 86,159.02. The Sensex is trading above its 50-day moving average, which itself is above the 200-day moving average, signalling a bullish trend. Additionally, the BSE Small Cap index gained 0.75%, leading market segments on the day.
Comparative Performance Over One Year
Over the last twelve months, Chemfab Alkalis has underperformed significantly relative to the market. The stock has recorded a return of -54.74%, while the Sensex has posted a positive return of 4.08%. Even the broader BSE500 index has generated a modest 0.93% return during this period, highlighting the stock’s relative weakness.
The 52-week high for Chemfab Alkalis was Rs.1,174.55, underscoring the steep decline to the current low. This performance gap reflects ongoing pressures on the company’s financials and market valuation.
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Financial Performance and Earnings Trends
Chemfab Alkalis has experienced a prolonged period of subdued financial results. The company has reported negative earnings for ten consecutive quarters, reflecting persistent challenges in profitability. The latest quarterly results show a Profit Before Tax (PBT) less other income of Rs. -3.09 crore, representing a decline of 316.1% compared to the previous four-quarter average. Similarly, the Profit After Tax (PAT) for the quarter stood at Rs. -2.01 crore, down 274.8% relative to the prior four-quarter average.
Net sales for the quarter were Rs. 76.56 crore, down 12.3% compared to the previous four-quarter average. On an annual basis, net sales have shown a decline of 16.36%, contributing to the negative earnings trajectory. Over the past five years, operating profit has recorded a compound annual rate of -6.47%, indicating a contraction in core profitability.
Valuation and Capital Efficiency
The company’s return on capital employed (ROCE) stands at 1.8%, which is relatively low given its valuation metrics. The enterprise value to capital employed ratio is 1.6, suggesting a premium valuation compared to peers’ historical averages. Despite the subdued earnings, the stock trades at a valuation level that may be considered expensive relative to its capital efficiency.
Debt levels remain modest, with an average debt-to-equity ratio of 0.10 times, indicating limited leverage on the balance sheet. This low gearing provides some financial flexibility, although it has not translated into improved earnings performance.
Shareholding and Market Interest
Domestic mutual funds hold a small stake of just 0.25% in Chemfab Alkalis. Given their capacity for detailed research and on-the-ground analysis, this limited exposure may reflect a cautious stance towards the company’s current valuation and business outlook.
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Sector and Industry Context
Chemfab Alkalis operates within the commodity chemicals sector, a segment that often experiences volatility linked to raw material prices and global demand fluctuations. While the broader market indices have shown positive trends recently, the company’s stock has not mirrored this movement, reflecting company-specific factors impacting performance.
The stock’s recent price action and financial results highlight the challenges faced by Chemfab Alkalis in maintaining growth and profitability in a competitive and cyclical industry environment.
Summary of Key Metrics
To summarise, Chemfab Alkalis’ stock price has declined to Rs.458, its lowest level in the past year, with a year-to-date return of -54.74%. The company’s earnings have been negative for ten quarters consecutively, with recent quarterly PBT and PAT figures showing significant declines compared to historical averages. Net sales have contracted by over 16% annually, and operating profit has shown a negative growth rate over five years. Valuation metrics indicate a premium relative to capital employed, while debt levels remain low.
These factors collectively provide a comprehensive view of the stock’s current position within the commodity chemicals sector and the broader market.
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