Key Events This Week
29 Dec 2025: Stock declines 1.83% amid broader market weakness
30 Dec 2025: Further drop of 1.98% on low volume
31 Dec 2025: Sharp rebound with 4.61% gain on heavy volume
1 Jan 2026: Pullback of 2.33% despite Sensex gains
2 Jan 2026: Price rises 3.95% following rating upgrade and technical momentum shift
29 December 2025: Initial Weakness Amid Market Downturn
Chemplast Sanmar Ltd opened the week on a weak note, closing at Rs.255.50, down 1.83% from the previous Friday’s close of Rs.260.25. This decline coincided with a broader Sensex drop of 0.41% to 37,140.23. The stock’s volume was relatively low at 1,840 shares, reflecting subdued investor interest amid year-end market volatility. The downward pressure was consistent with the prevailing bearish technical indicators at the time.
30 December 2025: Continued Decline on Thin Trading
The stock extended its losses, falling 1.98% to Rs.250.45 on 30 December, while the Sensex remained nearly flat, dipping marginally by 0.01% to 37,135.83. Volume increased slightly to 6,050 shares but remained modest. The stock’s underperformance relative to the benchmark index highlighted ongoing investor caution, with technical momentum still firmly bearish.
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31 December 2025: Strong Rebound on Heavy Volume
On the last trading day of 2025, Chemplast Sanmar Ltd surged 4.61% to close at Rs.262.00, significantly outperforming the Sensex which gained 0.83% to 37,443.41. This rally was supported by a substantial increase in volume to 140,700 shares, indicating renewed investor interest. The sharp rebound aligned with early signs of technical momentum improvement, particularly on monthly indicators, suggesting a potential easing of the prior downtrend.
1 January 2026: Profit Taking Amid Market Gains
The stock retraced 2.33% to Rs.255.90 despite the Sensex advancing 0.14% to 37,497.10. Volume dropped to 2,236 shares, reflecting a quieter trading session. This pullback was consistent with mixed technical signals, as daily moving averages remained bearish and short-term momentum showed uncertainty. The price action suggested cautious profit-taking following the previous day’s strong rally.
2 January 2026: Rating Upgrade Spurs 3.95% Gain
Chemplast Sanmar Ltd closed the week on a positive note, rising 3.95% to Rs.266.00 on increased volume of 13,661 shares. This gain followed MarketsMOJO’s upgrade of the stock’s investment rating from 'Strong Sell' to 'Sell', reflecting a subtle shift in technical momentum from strongly bearish to mildly bearish. Despite the improvement, fundamental challenges such as flat financial performance, high leverage, and valuation concerns remain significant headwinds for the stock.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2025-12-29 | Rs.255.50 | -1.83% | 37,140.23 | -0.41% |
| 2025-12-30 | Rs.250.45 | -1.98% | 37,135.83 | -0.01% |
| 2025-12-31 | Rs.262.00 | +4.61% | 37,443.41 | +0.83% |
| 2026-01-01 | Rs.255.90 | -2.33% | 37,497.10 | +0.14% |
| 2026-01-02 | Rs.266.00 | +3.95% | 37,799.57 | +0.81% |
Key Takeaways from the Week
Positive Signals: The upgrade in investment rating to 'Sell' from 'Strong Sell' was driven by a mild improvement in technical momentum, notably the monthly MACD turning bullish and a bullish monthly RSI. The stock’s 4.61% rally on 31 December on heavy volume and the 3.95% gain on 2 January following the rating upgrade indicate potential for stabilisation in price action.
Cautionary Factors: Despite technical improvements, fundamental challenges persist. Chemplast Sanmar’s financial performance remains flat with declining net sales and sharply deteriorated operating profits over five years. High leverage, with a Debt to EBITDA ratio of 4.30 times and a debt-equity ratio near 0.97, constrains financial flexibility. The stock trades near its 52-week low of Rs.245.35, far below its 52-week high of Rs.518.75, reflecting sustained market scepticism.
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Conclusion: A Tentative Shift Amid Persistent Challenges
Chemplast Sanmar Ltd’s week ended with a 2.21% gain, modestly outperforming the Sensex’s 1.35% rise. The upgrade in technical momentum and investment rating to 'Sell' from 'Strong Sell' signals a cautious easing of bearish sentiment. However, the company’s flat financial results, high leverage, and significant underperformance over multiple timeframes continue to pose risks. The stock remains close to its annual lows, underscoring the challenges ahead.
Investors should weigh the slight technical improvements against the persistent fundamental headwinds. The mixed signals suggest that while short-term volatility may offer trading opportunities, a sustained recovery will require stronger financial performance and clearer bullish momentum. Monitoring upcoming quarterly results and technical developments will be essential for assessing the stock’s trajectory going forward.
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