Chemfab Alka.

Why is Chemfab Alkalis Ltd falling/rising?

As of 21-Jul, Chemfab Alkalis Ltd's stock price is at 364.05, reflecting a significant decline of 50.09% over the past year and underperformance against the benchmark Sensex. The company faces serious financial challenges, including negative operating profits for 12 consecutive quarters and minimal investor confidence, as indicated by low mutual fund holdings.

As of 21-Jul, Chemfab Alkalis Ltd's stock price is falling, currently at 364.05, which reflects a decrease of 8.95 or 2.4%. The stock has underperformed significantly in both the short and long term, with a year-to-date decline of 11.80% compared to a 7.43% drop in the benchmark index, Sensex. Over the past year, the stock has plummeted by 50.09%, while the Sensex has only decreased by 3.60%. <BR><BR>Today's performance indicates that the stock has underperformed its sector by 2.93%, and it has been trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. Additionally, there has been a notable decline in investor participation, with delivery volume falling by 92.06% against the 5-day average. <BR><BR>The company's financial health raises concerns, as it has reported negative operating profits for the last 12 consecutive quarters and has a poor long-term growth rate, with operating profit declining at an annual rate of 182.98% over the last five years. The stock's negative EBIT of Rs. -1.2 crore and a significant profit decline of 216.3% over the past year further contribute to its risky profile. Moreover, domestic mutual funds hold only a minimal stake of 0.25%, suggesting a lack of confidence in the company's valuation or business prospects. <BR><BR>Overall, these factors indicate a troubling trend for Chemfab Alkalis Ltd, leading to its current decline in stock price.

Which are the latest news on Chemfab Alka.?

What does Chemfab Alka. do?

Chemfab Alkalis Ltd manufactures caustic soda, liquid chlorine, hydrogen gas, and PVCO pipes, operating in the commodity chemicals sector. Incorporated in 2009, it has a market cap of INR 584 Cr and reported net sales of 75 Cr with no profit for the quarter ending March 2026.

Overview:<BR>Chemfab Alkalis Ltd is a manufacturer of caustic soda lye, flakes, liquid chlorine, hydrogen gas, PVCO pipes, and other products in the commodity chemicals industry, categorized as a micro-cap company.<BR><BR>History:<BR>Chemfab Alkalis Ltd was incorporated on May 6, 2009, and was formerly known as Teamec Chlorates Limited. The company changed its name on July 21, 2017, following a scheme of amalgamation dated March 30, 2017. The most recent quarterly results reported net sales and net profit for the period ending March 2026.<BR><BR>Financial Snapshot:<BR>Net Sales: 75 Cr (Quarterly Results - Mar 2026)<BR>Net Profit: 0 Cr (Quarterly Results - Mar 2026)<BR>Market Cap: INR 584 Cr (Micro Cap)<BR><BR>Key Metrics:<BR>P/E: N/A<BR>Industry P/E: 42<BR>Dividend Yield: 0.28%<BR>Debt Equity: 0.30<BR>Return on Equity: -0.91%<BR>Price to Book: 1.64<BR><BR>Contact Details:<BR>Address: Team House, GST Salai Vandalur Chennai Tamil Nadu : 600048<BR>Tel: 91-44-22750323/24<BR>Email: chemfabalkalis@drraholdings.com<BR>Website: http://www.chemfabalkalis.com

How big is Chemfab Alka.?

As of 10th June, Chemfab Alkalis Ltd has a market capitalization of 584.00 Cr and reported Net Sales of 311.02 Cr, with a Net Profit loss of 3.43 Cr over the latest 4 quarters. Shareholder's Funds are 379.99 Cr and Total Assets are 498.84 Cr as of March 2025.

As of 10th June, Chemfab Alkalis Ltd has a market capitalization of 584.00 Cr, categorizing it as a Micro Cap company.<BR><BR>In the latest 4 quarters, Chemfab Alkalis Ltd reported Net Sales of 311.02 Cr. However, the company experienced a loss of 3.43 Cr in Net Profit during the same period.<BR><BR>The latest annual period for the balance sheet is March 2025. Shareholder's Funds are reported at 379.99 Cr, while Total Assets stand at 498.84 Cr.

Who are in the management team of Chemfab Alka.?

The management team of Chemfab Alka includes Suresh Krishnamurthi Rao (Chairman), C S Ramesh, R Mahendran, Nitin S Cowlagi (all Non-Executive & Non-Independent Directors), and independent directors Sujatha Jayarajan, Drushti Desai, A Janakiraman, and T Ramabadran.

The management team of Chemfab Alka includes the following members:<BR><BR>1. **Suresh Krishnamurthi Rao** - Chairman (Non-Executive) & Director (Non-Independent)<BR>2. **C S Ramesh** - Non-Executive & Non-Independent Director<BR>3. **R Mahendran** - Non-Executive & Non-Independent Director<BR>4. **Sujatha Jayarajan** - Independent Director<BR>5. **Drushti Desai** - Independent Director<BR>6. **A Janakiraman** - Independent Director<BR>7. **T Ramabadran** - Independent Director<BR>8. **Nitin S Cowlagi** - Non-Executive & Non-Independent Director<BR><BR>If you have any more questions about Chemfab Alka or its operations, feel free to ask!

Who are the peers of the Chemfab Alka.?

Chemfab Alka's peers include OCCL, Tuticorin Alkali, and Vikram Thermo, among others. OCCL shows excellent management and growth, while Chemfab Alka has below-average growth and a 1-year return of -50.09%.

Peers: The peers of Chemfab Alka. are Sr.Rayala.Hypo, Blue Pearl Agri, Sadhana Nitro, Tuticorin Alkali, OCCL, Primo Chemicals, Vikram Thermo, Transpek Inds., POCL Enterprises, and Andhra Petrochem.<BR><BR>Quality Snapshot: Excellent management risk is observed at OCCL, Tuticorin Alkali, and Vikram Thermo, while Average management risk is found at Chemfab Alka., Sr.Rayala.Hypo, Blue Pearl Agri, Sadhana Nitro, Primo Chemicals, Transpek Inds., POCL Enterprises, and Andhra Petrochem. Below Average management risk is noted at OCCL. In terms of Growth, Excellent growth is seen at OCCL and POCL Enterprises, Good growth at Tuticorin Alkali, Average growth at Blue Pearl Agri, while Below Average growth is found at Chemfab Alka., Sadhana Nitro, Primo Chemicals, Vikram Thermo, and Andhra Petrochem. Capital Structure is Excellent for Chemfab Alka., OCCL, and Tuticorin Alkali, Good for Blue Pearl Agri and Transpek Inds., Average for Primo Chemicals, and Below Average for Sadhana Nitro and POCL Enterprises.<BR><BR>Return Snapshot: The peer with the highest 1-year return is OCCL at 8.60%, while the peer with the lowest is Sadhana Nitro at -86.72%. Chemfab Alka.'s own 1-year return is -50.09%, which is significantly higher than Sadhana Nitro's. Additionally, the six-month return is negative for Chemfab Alka., Sadhana Nitro, Blue Pearl Agri, Transpek Inds., and POCL Enterprises.

Are Chemfab Alkalis Ltd latest results good or bad?

Chemfab Alkalis Ltd's latest results show a return to profitability with a net profit of ₹0.48 crore in Q4 FY26 and a 9.74% increase in net sales quarter-on-quarter. However, year-on-year sales declined by 19%, and operating margins contracted, indicating ongoing challenges in the commodity chemicals sector.

Chemfab Alkalis Ltd's latest results present a mixed picture. On one hand, the company reported a net profit of ₹0.48 crore in Q4 FY26, marking a return to profitability after several quarters of losses, which is a positive development. Additionally, net sales increased by 9.74% quarter-on-quarter, indicating some sequential improvement.<BR><BR>However, the year-on-year comparison reveals significant challenges. Net sales declined by 19% compared to the same quarter last year, and the operating margin has also contracted, falling to 11.39% from higher levels in the previous year. This suggests ongoing structural issues and pricing pressures in the commodity chemicals sector.<BR><BR>Moreover, the company’s reliance on other income for profitability raises concerns about the sustainability of this turnaround. The quality of earnings is questionable, as other income accounted for a substantial portion of profit before tax.<BR><BR>Overall, while there are signs of improvement in the most recent quarter, the broader trends indicate that Chemfab Alkalis is still grappling with significant operational challenges and margin erosion. Investors should approach the situation with caution, considering both the recent positive developments and the underlying issues that persist.

Should I buy, sell or hold Chemfab Alkalis Ltd?

How has been the historical performance of Chemfab Alka.?

Chemfab Alka's historical performance shows increasing net sales and total assets, but declining profitability, with a profit after tax of -INR 6.94 crore in March 2025, following a peak in March 2023. Total expenditures rose significantly, impacting operating profit and leading to negative profit before tax in 2025.

Answer:<BR>The historical performance of Chemfab Alka shows a fluctuating trend in key financial metrics over the years.<BR><BR>Breakdown:<BR>Chemfab Alka's net sales have seen a gradual increase from INR 204.52 crore in March 2020 to INR 334.37 crore in March 2025, with a slight dip in March 2023. Total operating income followed a similar pattern, reaching INR 334.37 crore in March 2025. However, the total expenditure has also risen significantly, from INR 149.48 crore in March 2020 to INR 290.65 crore in March 2025. This led to a decline in operating profit, which peaked at INR 115.99 crore in March 2023 but fell to INR 50.84 crore in March 2025. The profit before tax turned negative in March 2025 at INR -0.31 crore, following a positive trend in previous years. Consequently, the profit after tax also dropped to INR -6.94 crore in March 2025, contrasting with INR 64.58 crore in March 2023. The company's total assets increased from INR 296.50 crore in March 2020 to INR 498.84 crore in March 2025, while total liabilities also rose from INR 296.50 crore to INR 498.84 crore during the same period. Cash flow from operating activities improved to INR 39 crore in March 2025, although cash flow from investing activities remained negative at INR -85 crore. Overall, Chemfab Alka's financial performance reflects both growth in sales and assets, but challenges in profitability and increasing costs.

Is Chemfab Alka. technically bullish or bearish?

As of August 1, 2025, Chemfab Alka's trend has shifted to a moderate bearish stance, indicated by bearish MACD and Bollinger Bands, despite mixed signals from the KST.

As of 1 August 2025, the technical trend for Chemfab Alka has changed from mildly bearish to bearish. The current stance is bearish with a moderate strength. Key indicators driving this assessment include a bearish MACD on the weekly chart, bearish signals from Bollinger Bands on both weekly and monthly time frames, and a bearish moving average on the daily chart. The KST shows a mildly bullish signal on the weekly but is mildly bearish monthly, indicating mixed signals in the short term. Overall, the prevailing bearish sentiment is supported by the recent price action, with the stock down significantly year-to-date and over the past month.

When is the next results date for Chemfab Alka.?

Chemfab Alka is scheduled to declare its results on July 31, 2025.

Chemfab Alka is scheduled to declare its results on 31 July 2025.

Who are the top shareholders of the Chemfab Alka.?

The top shareholder of Chemfab Alka is Dr Rao Holdings Pte Ltd, with a 47.07% stake. V. M. Srinivasan is the largest individual shareholder at 1.81%, while individual investors hold 21.53% of the shares.

The top shareholders of Chemfab Alka include Dr Rao Holdings Pte Ltd, which holds the largest stake at 47.07%. The company is primarily owned by its promoters, with no pledged promoter holdings reported. In terms of public shareholders, V. M. Srinivasan is the highest individual shareholder, owning 1.81%. Additionally, individual investors collectively hold 21.53% of the shares, while mutual funds and foreign institutional investors hold minor stakes of 0.07% and 0.03%, respectively.

Is Chemfab Alka. overvalued or undervalued?

As of May 23, 2024, Chemfab Alkalis Ltd. is considered very expensive and overvalued, with a PE ratio of 367.03 and significant underperformance against the Sensex, indicating a lack of growth expectations and high valuation compared to industry benchmarks.

As of 23 May 2024, the valuation grade for Chemfab Alkalis Ltd. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued. Key ratios highlight this concern, with a PE ratio of 367.03, an EV to EBIT of 155.27, and a Price to Book Value of 2.85, all of which are substantially higher than typical industry benchmarks.<BR><BR>In comparison to peers, Chemfab Alkalis Ltd. stands out with a PE ratio significantly above the average, while its EV to EBITDA ratio of 26.21 aligns with its high valuation. Notably, the company has a PEG ratio of 0.00, suggesting no growth expectations are priced in, which further emphasizes its overvaluation. Recent performance shows that Chemfab has underperformed against the Sensex, with a year-to-date return of -26.8% compared to the Sensex's 5.56%, reinforcing the notion that the stock may be overvalued in the current market context.

Has Chemfab Alka. declared dividend?

Yes, Chemfab Alkalis Ltd has declared a 12% dividend, amounting to ₹1.2 per share, with an ex-date of September 13, 2024. Despite recent fluctuations, the company has shown strong long-term total returns, particularly over the 3 to 5 year periods.

Chemfab Alkalis Ltd has declared a 12% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 12%<BR>- Amount per share: 1.2<BR>- Ex-date: 13 Sep 24<BR><BR>Dividend Yield: 0.16%.<BR><BR>Total Returns by Period:<BR>In the 6 months period, the price return was -31.68%, with a dividend return of 0%, resulting in a total return of -31.68%.<BR><BR>For the 1 year period, the price return was 33.47%, the dividend return was 0.19%, leading to a total return of 33.66%.<BR><BR>Over the 2 years period, the price return was 130.2%, with a dividend return of 0.74%, culminating in a total return of 130.94%.<BR><BR>In the 3 years period, the price return was 354.78%, the dividend return was 2.32%, resulting in a total return of 357.1%.<BR><BR>For the 4 years period, the price return was 413.05%, with a dividend return of 2.46%, leading to a total return of 415.51%.<BR><BR>In the 5 years period, the price return was 440.62%, with a dividend return of 3.57%, resulting in a total return of 444.19%.<BR><BR>Overall, Chemfab Alkalis Ltd has declared a dividend, and while the recent returns show significant fluctuations, the long-term performance indicates a strong upward trend in total returns, particularly over the 3 to 5 year periods.