Recent Price Movement and Market Context
On 4 December 2025, Chemplast Sanmar's share price touched an intraday high of Rs.285.95 before settling at Rs.275.2, its lowest level in the past year and all-time low. The stock has recorded a three-day consecutive decline, resulting in a cumulative return of -3.19% over this period. This performance contrasts with the broader market, where the Sensex recovered from an initial negative opening to close 0.18% higher at 85,261.69 points, just 1.05% shy of its 52-week high of 86,159.02.
Chemplast Sanmar's price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. The stock's day-on-day change of -0.86% also underperformed the Commodity Chemicals sector by 1.86%, indicating relative weakness within its industry group.
Financial Performance Over the Past Year
The stock's one-year return stands at -45.38%, a stark contrast to the Sensex's positive 5.32% return over the same period. This divergence highlights the stock's consistent underperformance relative to the broader market. Over the last three years, Chemplast Sanmar has also lagged behind the BSE500 index annually, underscoring a prolonged period of subdued market performance.
Profitability metrics have shown considerable pressure, with operating profits declining by 70.7% in the past year. This reduction in earnings has contributed to the stock's valuation challenges and downward price trajectory.
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Long-Term Growth and Profitability Trends
Over the past five years, Chemplast Sanmar's net sales have shown a negative compound annual growth rate of -3.77%, while operating profit has declined at an annualised rate of -154.13%. These figures indicate a contraction in business scale and earnings capacity over the medium term.
The company's average return on equity (ROE) stands at 9.03%, reflecting modest profitability relative to shareholders' funds. This level of ROE suggests limited efficiency in generating profits from equity capital.
Despite these challenges, the company reports a return on capital employed (ROCE) of 16.72%, which indicates a relatively higher efficiency in utilising its capital base to generate earnings before interest and tax.
Balance Sheet and Liquidity Considerations
As of the half-year period ending in 2025, Chemplast Sanmar's cash and cash equivalents were recorded at Rs.569.39 crores, representing the lowest level in recent periods. Concurrently, the debt-to-equity ratio reached 0.97 times, the highest in recent history, signalling an increased reliance on debt financing.
The company's debt servicing capacity is constrained, with a debt-to-EBITDA ratio of 4.30 times. This elevated leverage ratio points to a higher burden of debt relative to earnings before interest, tax, depreciation, and amortisation, which may affect financial flexibility.
Risk Profile and Valuation
Chemplast Sanmar's stock is considered to be trading at a riskier valuation compared to its historical averages. The combination of declining profits, high leverage, and subdued sales growth contributes to this elevated risk perception.
Institutional investors hold 38.77% of the company's shares, indicating a significant presence of entities with resources to analyse company fundamentals. This level of institutional holding may influence trading dynamics and market perception.
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Sector and Market Environment
Chemplast Sanmar operates within the Commodity Chemicals industry, a sector that has seen mixed performance amid broader market trends. While the Sensex and mega-cap stocks have shown resilience and positive momentum, smaller-cap stocks like Chemplast Sanmar have faced headwinds.
The Sensex's position above its 50-day and 200-day moving averages, with the 50 DMA trading above the 200 DMA, reflects a generally bullish market environment. However, Chemplast Sanmar's divergence from these trends highlights company-specific factors influencing its share price.
Summary of Key Price and Financial Metrics
The stock's 52-week high was Rs.527.55, indicating a substantial decline of nearly 48% from that peak to the current 52-week low of Rs.275.2. This wide price range over the year underscores significant volatility and downward pressure on the stock.
Operating profits have shown a marked contraction, with a 70.7% fall over the past year, while net sales have declined at an annual rate of -3.77% over five years. The debt-to-equity ratio nearing 1.0 and a debt-to-EBITDA ratio of 4.30 times further illustrate financial constraints.
Despite these challenges, the company maintains a relatively high ROCE of 16.72%, suggesting some operational efficiency in capital utilisation.
Conclusion
Chemplast Sanmar's stock reaching a 52-week low of Rs.275.2 reflects a combination of subdued financial performance, elevated leverage, and persistent underperformance relative to market benchmarks. The stock's position below all major moving averages and its recent three-day decline highlight ongoing downward momentum. While the broader market and sector indices have shown resilience, Chemplast Sanmar's share price continues to face pressure amid these factors.
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