Recent Price Movement and Market Context
On 1 December 2025, PCBL Chemical’s share price touched Rs.322.8, representing the lowest level in the past year. The stock has experienced a consecutive three-day decline, resulting in a cumulative return of -1.52% over this period. Today’s trading session saw the stock underperform its sector by 0.26%, continuing a trend of subdued price action relative to peers.
PCBL Chemical is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a sustained downward momentum. This contrasts with the broader market, where the Sensex opened higher at 86,065.92 points, gaining 0.42% at the start of the day, and remains close to its 52-week high of 86,055.86. The Sensex has recorded a three-week consecutive rise, with a 1.54% gain over this period, supported by strong performance in the Small Cap segment, which gained 0.39% today.
Financial Performance Highlights
Over the past year, PCBL Chemical’s stock has generated a negative return of -25.27%, in stark contrast to the Sensex’s positive 7.59% return. This divergence underscores the challenges faced by the company amid a generally bullish market environment.
Key financial metrics reveal a decline in profitability. The company’s quarterly profit after tax (PAT) stood at Rs.61.54 crores, reflecting a 40.1% reduction compared to the previous four-quarter average. Operating cash flow for the year is reported at Rs.565.11 crores, noted as the lowest level in recent periods. Additionally, the operating profit to interest coverage ratio for the quarter is at 2.48 times, indicating tighter financial cushioning against interest obligations.
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Valuation and Dividend Yield
Despite the recent price decline, PCBL Chemical offers a dividend yield of approximately 3.39% at the current price level. This yield is relatively high compared to many peers in the Other Chemical products sector, providing a degree of income return to shareholders amid price weakness.
The company’s valuation metrics indicate an enterprise value to capital employed ratio of 2, which is considered attractive relative to historical averages within the sector. The return on capital employed (ROCE) stands at 15.00%, signalling efficient use of capital resources despite the recent profit contraction.
Long-Term Growth Trends
PCBL Chemical has demonstrated healthy long-term growth in net sales, with an annual growth rate of 27.43%. Operating profit has also expanded at a rate of 26.33% annually, reflecting underlying business expansion over recent years. However, the past year has seen profits fall by 30.2%, contributing to the stock’s underperformance.
While the company’s management efficiency remains notable, the recent financial results and share price movement suggest a period of adjustment in market assessment. The stock’s current trading discount relative to peers’ historical valuations may reflect this shift in analytical perspective.
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Sector and Market Comparison
Within the Other Chemical products sector, PCBL Chemical’s recent performance contrasts with broader market trends. The BSE500 index has generated returns of 5.27% over the last year, while PCBL Chemical’s stock has declined by over a quarter in the same period. The Sensex’s current position near its 52-week high and its trading above key moving averages highlight a generally positive market environment that PCBL Chemical has not mirrored.
This divergence may be attributed to company-specific factors affecting profitability and investor sentiment, as reflected in the stock’s price action and financial metrics.
Summary of Key Price and Financial Indicators
To summarise, PCBL Chemical’s stock price has reached Rs.322.8, its lowest level in 52 weeks, following a three-day decline and underperformance relative to its sector. The company’s profitability metrics show a contraction in quarterly PAT and operating cash flow, alongside a reduced interest coverage ratio. Despite these challenges, the company maintains a strong ROCE and attractive dividend yield, with long-term sales and operating profit growth rates remaining robust.
These factors collectively illustrate a complex financial picture, with the stock’s current valuation reflecting recent shifts in market assessment and company performance.
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