Recent Price Movement and Market Context
On 22 December 2025, Chemfab Alkalis recorded an intraday low of Rs.435.05, representing a fall of 2.83% on the day. This new low comes after a five-day consecutive decline, during which the stock has returned -5.4%. Despite touching an intraday high of Rs.463.5, the stock closed lower, underperforming its sector by 4.05%. The commodity chemicals sector itself gained 2.17% on the same day, highlighting the divergence between Chemfab Alkalis and its peers.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the broader market, where the Sensex climbed 392.11 points to 85,538.01, trading near its 52-week high of 86,159.02 and maintaining a bullish stance above its 50-day and 200-day moving averages.
Long-Term Performance and Valuation Metrics
Over the past year, Chemfab Alkalis has experienced a substantial decline of 59.13% in its stock price, while the Sensex has recorded a positive return of 9.61%. The stock’s 52-week high was Rs.1,100.65, indicating a significant erosion of value over the period. This underperformance is further underscored by the company’s financial results and valuation metrics.
Operating profit has shown a negative compound annual growth rate of 6.47% over the last five years, reflecting challenges in sustaining profitability. The company’s recent quarterly results reveal a net sales figure of Rs.76.56 crores, down 12.3% compared to the previous four-quarter average. Profit before tax excluding other income stood at a loss of Rs.3.09 crores, a decline of 316.1%, while the net profit after tax was a loss of Rs.2.01 crores, down 274.8% relative to the prior four-quarter average.
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Valuation and Capital Efficiency
Chemfab Alkalis’ return on capital employed (ROCE) stands at 1.8%, which is relatively low given its valuation. The enterprise value to capital employed ratio is 1.5, indicating a premium valuation compared to historical averages of its peers. Despite the company’s size, domestic mutual funds hold a modest stake of only 0.25%, which may reflect a cautious stance given the company’s recent financial performance and valuation.
On a positive note, the company maintains a low average debt-to-equity ratio of 0.10 times, suggesting limited leverage and a conservative capital structure. However, this has not translated into improved stock performance or profitability in the recent period.
Sector and Market Comparison
While Chemfab Alkalis has struggled, the broader chemical sector has shown resilience, with a 2.17% gain on the day of the stock’s new low. The BSE Small Cap index also recorded gains of 1.14%, leading the market. The BSE500 index generated returns of 6.66% over the past year, further emphasising the stock’s relative underperformance.
The Sensex’s upward trajectory, trading near its 52-week high and supported by bullish moving averages, contrasts with the downward trend in Chemfab Alkalis, highlighting the stock’s divergence from broader market sentiment.
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Summary of Key Financial Indicators
Chemfab Alkalis’ recent quarterly results and annual trends illustrate a contraction in net sales and profitability. The net sales figure of Rs.76.56 crores for the latest quarter is down 12.3% from the previous four-quarter average, while profit before tax excluding other income and net profit after tax have both recorded significant losses compared to historical averages.
The company’s valuation metrics, including a ROCE of 1.8% and an enterprise value to capital employed ratio of 1.5, suggest a premium valuation despite subdued financial performance. The stock’s trading below all major moving averages further reflects the current market sentiment.
In contrast, the Sensex and the chemical sector have shown positive momentum, with the Sensex trading near its 52-week high and the sector gaining 2.17% on the day Chemfab Alkalis hit its new low.
Concluding Observations
Chemfab Alkalis’ stock price reaching Rs.435.05 marks a notable low point within the last 52 weeks, reflecting a period of sustained price decline and financial contraction. The stock’s performance diverges markedly from the broader market and sector trends, which have shown resilience and growth over the same period.
While the company maintains a conservative debt profile, its recent financial results and valuation metrics indicate challenges in generating growth and profitability. The stock’s position below all key moving averages underscores the prevailing downward momentum in its price action.
Investors analysing Chemfab Alkalis will note the contrast between the company’s recent performance and the broader market’s positive trajectory, as well as the premium valuation metrics relative to its financial outcomes.
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