Recent Price Movement and Market Context
On 3 December 2025, Chemplast Sanmar’s stock price touched Rs.280.55, the lowest level recorded in the past year and also an all-time low. This follows a two-day consecutive decline, with the stock registering a cumulative return of -1.26% over this period. The stock’s performance today underperformed its sector by 0.36%, reflecting broader pressures within the commodity chemicals industry.
Notably, Chemplast Sanmar is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates sustained weakness in the stock’s price trend over short, medium, and long-term horizons.
In contrast, the broader market index, Sensex, opened flat but later declined by 255.10 points, or 0.29%, closing at 84,895.54. Despite this dip, Sensex remains approximately 1.49% below its 52-week high of 86,159.02 and is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a generally bullish trend for the benchmark.
Long-Term Performance and Relative Comparison
Over the past year, Chemplast Sanmar’s stock has recorded a return of -43.77%, significantly lagging behind the Sensex’s positive return of 5.01% during the same period. This underperformance extends beyond the last year, with the stock consistently trailing the BSE500 index across the previous three annual periods.
The stock’s 52-week high was Rs.527.55, highlighting the extent of the decline from its peak to the current low. This nearly 47% reduction in value over the year underscores the challenges faced by the company and the market’s cautious stance towards its shares.
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Financial Metrics Highlighting Current Concerns
Chemplast Sanmar’s financial indicators reveal several areas of concern. The company’s Debt to EBITDA ratio stands at 4.30 times, indicating a relatively high level of debt compared to earnings before interest, taxes, depreciation, and amortisation. This ratio suggests limited capacity to comfortably service debt obligations.
Profitability metrics also reflect subdued performance. The average Return on Equity (ROE) is 9.03%, which points to modest returns generated on shareholders’ funds. Additionally, the company’s net sales have declined at an annual rate of -3.77% over the past five years, while operating profit has shown a more pronounced negative trend, with a fall of -154.13% during the same period.
Recent half-year financials show cash and cash equivalents at Rs.569.39 crores, the lowest level recorded, while the debt-to-equity ratio has reached 0.97 times, the highest in recent periods. These figures further illustrate the company’s constrained liquidity position and elevated leverage.
Profitability and Risk Factors
The stock’s risk profile is accentuated by negative operating profits, which have declined by 70.7% over the past year. This deterioration in profitability contributes to the stock’s classification as risky relative to its historical valuation averages.
Despite these challenges, the company demonstrates a relatively high management efficiency, with a Return on Capital Employed (ROCE) of 16.72%. This suggests that the company is generating reasonable returns on the capital invested in its operations, even as other financial metrics remain subdued.
Institutional investors hold a significant stake in Chemplast Sanmar, accounting for 38.77% of shareholdings. These investors typically possess greater resources and analytical capabilities to assess company fundamentals compared to retail investors.
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Summary of Key Challenges
Chemplast Sanmar’s stock has been on a downward trajectory, culminating in the recent 52-week low of Rs.280.55. The company’s financial profile is characterised by high leverage, subdued profitability, and declining sales over the medium term. These factors have contributed to the stock’s underperformance relative to the broader market and its sector peers.
While the company maintains a degree of operational efficiency as reflected in its ROCE, the prevailing financial conditions and market sentiment have weighed on its share price. The stock’s position below all major moving averages further emphasises the current bearish trend.
Investors and market participants will continue to monitor the company’s financial disclosures and market developments closely, given the stock’s recent performance and valuation metrics.
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