Recent Price Movement and Market Context
On 8 December 2025, Chemplast Sanmar's stock price touched Rs.259.45, its lowest level in the past year and an all-time low. The stock has recorded a cumulative decline of 8.35% over the last five days. Despite this, it marginally outperformed its sector by 0.5% on the day of the new low. The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward trend.
In contrast, the broader market, represented by the Sensex, opened flat but moved into negative territory, trading at 85,437.59 points, down 0.32% or 87.53 points. The Sensex remains close to its 52-week high of 86,159.02, just 0.84% away, and is supported by bullish moving averages with the 50-day average above the 200-day average.
Long-Term Performance and Comparison
Over the past year, Chemplast Sanmar's stock has recorded a return of -48.77%, significantly underperforming the Sensex, which posted a positive return of 4.56% during the same period. The stock's 52-week high was Rs.524.15, highlighting the extent of the decline from its peak.
This underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index in each of the previous three annual periods. Such a trend points to persistent challenges in maintaining market value relative to broader benchmarks.
Handpicked from 50, scrutinized by experts – Our recent selection, this Mid Cap from Bank - Public, is already delivering results. Don't miss next month's pick!
- - Expert-scrutinized selection
- - Already delivering results
- - Monthly focused approach
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, signalling a relatively high level of debt compared to earnings before interest, taxes, depreciation, and amortisation. This ratio suggests a constrained capacity to service debt obligations efficiently.
Profitability metrics also reflect subdued performance. The average Return on Equity (ROE) is 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, with a cumulative change of -154.13% during the same period.
In the half-year period ending recently, cash and cash equivalents were recorded at Rs.569.39 crores, the lowest level noted, while the debt-to-equity ratio reached 0.97 times, the highest in recent times. These figures underscore the tightening liquidity and increased leverage within the company’s capital structure.
Profitability and Risk Factors
The stock's risk profile is elevated, with operating profits showing negative trends. Over the past year, profits have declined by 70.7%, contributing to the stock's overall return of -48.77%. This combination of falling profits and stock price points to challenges in sustaining earnings momentum.
Despite these concerns, the company demonstrates a relatively high Return on Capital Employed (ROCE) of 16.72%, reflecting efficient utilisation of capital in generating earnings before interest and taxes. This metric indicates that management maintains a degree of operational efficiency amid broader financial pressures.
Shareholding and Market Position
Institutional investors hold a significant stake in Chemplast Sanmar, accounting for 38.77% of the shareholding. Such investors typically possess extensive resources and analytical capabilities to assess company fundamentals, which may influence market perceptions and stock liquidity.
The company operates within the commodity chemicals sector, a segment characterised by cyclical demand and sensitivity to raw material prices and global economic conditions. Chemplast Sanmar’s current valuation appears elevated relative to its historical averages, contributing to the perception of increased risk in the stock.
Considering Chemplast Sanmar ? Wait! SwitchER has found potentially better options in Commodity Chemicals and beyond. Compare this small-cap with top-rated alternatives now!
- - Better options discovered
- - Commodity Chemicals + beyond scope
- - Top-rated alternatives ready
Summary of Key Indicators
Chemplast Sanmar’s stock price at Rs.259.45 represents a significant decline from its 52-week high of Rs.524.15. The stock’s performance over the last year contrasts sharply with the broader market, which has maintained positive returns. Financial metrics point to elevated leverage, subdued sales growth, and diminished profitability, while operational efficiency remains relatively strong as indicated by ROCE.
The company’s liquidity position, as reflected in cash reserves and debt levels, suggests tighter financial flexibility. Institutional ownership remains substantial, which may influence trading dynamics and market sentiment.
Overall, the stock’s current valuation and financial profile highlight the challenges faced by Chemplast Sanmar within the commodity chemicals sector amid prevailing market conditions.
Get 1 year of Weekly Picks FREE when you subscribe to MojoOne. Offer ends soon. Start Saving Now →
