Stock Price Movement and Market Context
On 16 Dec 2025, Chemplast Sanmar’s share price declined by 2.87% intraday, reaching the lowest level in the past year at Rs.255.45. This movement underperformed the broader commodity chemicals sector by 2.12% on the same day. The stock is currently trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downward trend in price momentum.
Meanwhile, the broader market, represented by the Sensex, also experienced a decline, falling 299 points or 0.57% to close at 84,726.61. Despite this, the Sensex remains 1.69% below its 52-week high of 86,159.02 and is trading above its 50-day and 200-day moving averages, indicating a relatively more stable market environment compared to Chemplast Sanmar’s stock.
Long-Term Performance and Comparison with Benchmarks
Over the past year, Chemplast Sanmar’s stock has recorded a return of -48.70%, a stark contrast to the Sensex’s positive return of 3.64% 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 across the last three annual periods.
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Financial Health and Profitability Indicators
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 a constrained ability to service debt obligations efficiently.
Profitability metrics also reflect subdued performance. The average Return on Equity (ROE) is recorded at 9.03%, which points to modest returns generated on shareholders’ funds. Additionally, the company’s net sales have shown a negative compound annual growth rate of -3.77% over the last five years, while operating profit has declined sharply by -154.13% during the same period.
Recent Financial Results and Liquidity Position
In the half-year period ending September 2025, Chemplast Sanmar reported flat results, with cash and cash equivalents at Rs.569.39 crores, the lowest level observed in recent periods. The debt-to-equity ratio for the half-year was at 0.97 times, marking the highest level recorded, which further underscores the company’s leverage position.
Operating profits have been negative, contributing to the perception of elevated risk associated with the stock. Over the past year, profits have declined by 70.7%, reinforcing the challenges faced by the company in maintaining earnings stability.
Valuation and Risk Considerations
The stock is currently trading at valuations that are considered risky relative to its historical averages. The persistent underperformance against the benchmark indices and the decline in profitability metrics have contributed to this valuation scenario. Investors observing the stock will note the consistent trend of returns below the BSE500 index over the last three years, highlighting the stock’s relative weakness in the broader market context.
Operational Efficiency and Institutional Holdings
Despite the challenges, Chemplast Sanmar exhibits a relatively high Return on Capital Employed (ROCE) of 16.72%, indicating efficient use of capital in its operations. Furthermore, institutional investors hold 38.77% of the company’s shares, reflecting a significant stake by entities with substantial analytical resources and market expertise.
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Summary of Key Metrics
Chemplast Sanmar’s stock price at Rs.255.45 represents a significant decline from its 52-week high of Rs.524.15. The company’s financial profile is characterised by a high debt burden relative to earnings, subdued sales growth, and a marked reduction in operating profits. While the ROCE suggests operational efficiency, the overall financial and market performance reflects ongoing pressures within the commodity chemicals sector.
The stock’s trading below all major moving averages and its underperformance relative to the Sensex and sector peers highlight the challenges faced by Chemplast Sanmar in the current market environment. Institutional holdings remain substantial, indicating continued interest from large investors despite the stock’s recent price movements.
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