Recent Price Movement and Market Context
On 19 Dec 2025, Chemplast Sanmar’s stock price touched Rs.246.5, its lowest level in the past year and an all-time low. The stock has recorded a consecutive four-day decline, resulting in a cumulative return of -5.55% over this period. This underperformance contrasts with the broader market, where the Sensex advanced by 0.6%, closing at 84,986.96 points, just 1.38% shy of its 52-week high of 86,159.02. The BSE Small Cap index also gained 0.64%, further underscoring the stock’s relative weakness within its sector.
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. This technical positioning reflects sustained selling pressure and a lack of short-term momentum.
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Financial Performance and Profitability Indicators
Over the past year, Chemplast Sanmar’s stock has recorded a return of -50.53%, significantly lagging the Sensex’s 7.30% gain during the same period. The stock’s 52-week high was Rs.524.15, indicating a near 53% reduction in value from that peak.
Financial metrics reveal pressures on the company’s earnings and growth. Net sales have declined at an annual rate of -3.77% over the last five years, while operating profit has shown a steep contraction of -154.13% in the same timeframe. The company’s profitability per unit of shareholder funds, as measured by average Return on Equity (ROE), stands at 9.03%, indicating modest returns relative to equity invested.
Operating profits have been negative recently, contributing to the stock’s risk profile. Over the past year, profits have fallen by -70.7%, reflecting challenges in maintaining earnings stability.
Balance Sheet and Debt Metrics
Chemplast Sanmar’s ability to service debt remains constrained, with a Debt to EBITDA ratio of 4.30 times, signalling elevated leverage relative to earnings before interest, taxes, depreciation, and amortisation. The company’s debt-equity ratio at the half-year mark is 0.97 times, the highest recorded in recent periods, while cash and cash equivalents have reduced to Rs.569.39 crores, the lowest level noted in the half-yearly data.
Despite these pressures, the company demonstrates strong management efficiency, with a Return on Capital Employed (ROCE) of 16.72%, suggesting effective utilisation of capital resources.
Sector and Market Comparison
Operating within the commodity chemicals industry, Chemplast Sanmar’s stock performance contrasts with the broader sector and market trends. The Sensex and small-cap indices have shown resilience and gains, while Chemplast Sanmar’s stock has consistently underperformed the BSE500 index over the last three annual periods.
This persistent underperformance highlights the divergence between the company’s stock trajectory and the general market environment, which has been buoyed by positive investor sentiment and sectoral momentum.
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Institutional Holdings and Market Perception
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, which may influence trading patterns and stock valuation.
Despite the stock’s recent lows, the presence of substantial institutional ownership indicates ongoing engagement from market participants with deeper insight into the company’s prospects and risks.
Summary of Key Concerns
The stock’s fall to Rs.246.5, its 52-week low, reflects a combination of factors including subdued sales growth, negative operating profits, elevated leverage, and consistent underperformance relative to market benchmarks. These elements have contributed to a cautious market assessment and a subdued stock price trajectory over the past year.
While the broader market and sector indices have shown strength, Chemplast Sanmar’s stock remains under pressure, trading below all major moving averages and recording losses over multiple consecutive sessions.
Conclusion
Chemplast Sanmar’s recent stock price movement to a new 52-week low underscores the challenges faced by the company in maintaining growth and profitability amid a competitive commodity chemicals sector. The stock’s performance contrasts with positive market trends, highlighting specific company-level factors influencing investor sentiment and valuation.
Investors and market watchers will continue to monitor the company’s financial metrics and market positioning as it navigates this period of subdued performance.
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