Stock Price Movement and Market Context
On 25 Nov 2025, Chemplast Sanmar’s share price touched Rs.287.6, the lowest level recorded in the past 52 weeks and also its all-time low. Despite this, the stock outperformed its sector on the day by 0.79%, showing a modest gain after nine consecutive sessions of decline. However, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward pressure.
In contrast, the broader market, represented by the Sensex, opened 108.22 points higher and was trading at 85,097.53, up 0.23%. The Sensex is currently 0.83% away from its 52-week high of 85,801.70 and is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average. Mega-cap stocks are leading the market rally, highlighting a divergence between Chemplast Sanmar’s performance and the overall market trend.
Long-Term Price Performance
Over the last year, Chemplast Sanmar’s stock has recorded a return of -40.10%, significantly underperforming the Sensex, which has shown a positive return of 6.22% during the same period. The stock’s 52-week high was Rs.527.55, illustrating a substantial decline from its peak. This prolonged downtrend reflects challenges faced by the company and the commodity chemicals sector in recent times.
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Financial Metrics Highlighting Current Concerns
Chemplast Sanmar’s financial indicators reveal several areas of concern. The company’s ability to service its debt is limited, with a Debt to EBITDA ratio of 4.30 times, which is considered high. This suggests that earnings before interest, taxes, depreciation, and amortisation are insufficient relative to the debt burden.
Profitability metrics also point to subdued performance. The average Return on Equity (ROE) stands at 9.03%, indicating modest returns generated on shareholders’ funds. Over the past five years, net sales have declined at an annual rate of -3.77%, while operating profit has shown a steep negative trend of -154.13%, signalling challenges in sustaining profitable operations.
Recent half-year data shows cash and cash equivalents at Rs.569.39 crores, the lowest level recorded, while the debt-to-equity ratio has risen to 0.97 times, the highest in recent periods. These figures underscore the company’s constrained liquidity position and increased leverage.
Profitability and Valuation Trends
The stock’s risk profile is elevated, with operating profits turning negative and valuations trading below historical averages. Over the past year, profits have declined by approximately 70.7%, reflecting pressure on earnings. This has contributed to the stock’s underperformance relative to the BSE500 index over the last three years, one year, and three months.
Despite these challenges, the company demonstrates a relatively high Return on Capital Employed (ROCE) of 16.72%, indicating efficient use of capital in generating returns. Additionally, institutional investors hold 38.77% of the stock, reflecting a significant stake by entities with extensive analytical resources.
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Sector and Industry Positioning
Chemplast Sanmar operates within the commodity chemicals industry, a sector that often experiences volatility due to fluctuating raw material prices and global demand cycles. The stock’s recent performance contrasts with the broader market’s positive momentum, highlighting sector-specific pressures that may be influencing investor sentiment.
The company’s market capitalisation grade is rated at 3, reflecting its mid-tier position in terms of market value within the industry. This positioning may affect liquidity and trading volumes compared to larger peers.
Summary of Key Price and Financial Data
To summarise, Chemplast Sanmar’s stock price has declined to Rs.287.6, marking a 52-week and all-time low. The stock remains below all major moving averages, signalling a persistent downtrend. Financial metrics reveal a high debt burden relative to earnings, subdued profitability, and declining sales over the medium term. Despite these factors, the company maintains a strong ROCE and notable institutional ownership.
Meanwhile, the broader market environment remains positive, with the Sensex trading near its 52-week high and supported by strong mega-cap performance. This divergence underscores the challenges faced by Chemplast Sanmar relative to the overall market and sector peers.
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