CHAMBLFERT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | CHAMBLFERT | Market Cap | 17,551 Cr. | Current Price | 438 ₹ | High / Low | 742 ₹ |
| Stock P/E | 9.22 | Book Value | 241 ₹ | Dividend Yield | 2.28 % | ROCE | 27.6 % |
| ROE | 20.3 % | Face Value | 10.0 ₹ | DMA 50 | 445 ₹ | DMA 200 | 473 ₹ |
| Chg in FII Hold | -0.56 % | Chg in DII Hold | 0.74 % | PAT Qtr | 565 Cr. | PAT Prev Qtr | 602 Cr. |
| RSI | 44.9 | MACD | 1.32 | Volume | 9,58,892 | Avg Vol 1Wk | 6,34,311 |
| Low price | 400 ₹ | High price | 742 ₹ | PEG Ratio | 1.22 | Debt to equity | 0.00 |
| 52w Index | 11.2 % | Qtr Profit Var | 11.9 % | EPS | 47.5 ₹ | Industry PE | 18.5 |
📊 Financials: CHAMBLFERT demonstrates strong fundamentals with ROE at 20.3% and ROCE at 27.6%, reflecting excellent efficiency. EPS of ₹47.5 supports earnings visibility. Debt-to-equity is 0.00, highlighting a debt-free balance sheet. However, quarterly PAT declined from ₹602 Cr. to ₹565 Cr. (-11.9%), showing short-term earnings pressure.
💹 Valuation: The stock trades at a P/E of 9.22, well below the industry average of 18.5, indicating undervaluation. Book value of ₹241 gives a P/B of ~1.8, attractive relative to peers. PEG ratio of 1.22 suggests fair valuation but not deeply undervalued. Intrinsic value appears higher than current price, supporting accumulation.
🏢 Business Model: CHAMBLFERT operates in fertilizers, benefiting from agricultural demand and government support. Its competitive advantage lies in strong profitability, debt-free operations, and dividend yield of 2.28%. Institutional sentiment is mixed, with FII holdings down (-0.56%) but DII holdings up (+0.74%).
🎯 Entry Zone: Attractive entry between ₹420–435, near DMA support levels. Long-term investors may hold for 3–5 years, with exit considerations if ROE falls below 15% or earnings decline consistently.
Positive
- Low P/E (9.22) vs industry average (18.5).
- Strong ROCE (27.6%) and ROE (20.3%).
- Debt-free balance sheet (Debt-to-equity: 0.00).
- Dividend yield of 2.28% provides income support.
- DII holdings increased (+0.74%), reflecting domestic confidence.
Limitation
- Quarterly PAT declined (-11.9%).
- FII holdings decreased (-0.56%), showing reduced foreign interest.
- PEG ratio of 1.22 indicates fair valuation but not deeply undervalued.
Company Negative News
- Recent quarterly profit decline and reduced FII interest indicate cautious sentiment.
Company Positive News
- Debt-free status strengthens financial health.
- Strong ROCE and ROE highlight operational efficiency.
- DII holdings increased, showing domestic institutional support.
Industry
- Fertilizer sector benefits from government support and agricultural demand.
- Industry PE at 18.5 suggests CHAMBLFERT trades at a discount.
Conclusion
✅ CHAMBLFERT is a fundamentally strong company with excellent profitability, debt-free balance sheet, and attractive valuations. Entry near ₹420–435 offers safety, while holding for 3–5 years could yield solid returns if earnings growth sustains and institutional confidence stabilizes.