CHAMBLFERT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | CHAMBLFERT | Market Cap | 18,184 Cr. | Current Price | 454 ₹ | High / Low | 602 ₹ |
| Stock P/E | 9.32 | Book Value | 254 ₹ | Dividend Yield | 2.20 % | ROCE | 26.2 % |
| ROE | 20.8 % | Face Value | 10.0 ₹ | DMA 50 | 446 ₹ | DMA 200 | 469 ₹ |
| Chg in FII Hold | -0.56 % | Chg in DII Hold | 0.74 % | PAT Qtr | 145 Cr. | PAT Prev Qtr | 565 Cr. |
| RSI | 54.8 | MACD | 1.00 | Volume | 7,52,731 | Avg Vol 1Wk | 10,45,966 |
| Low price | 400 ₹ | High price | 602 ₹ | PEG Ratio | 0.40 | Debt to equity | 0.10 |
| 52w Index | 26.7 % | Qtr Profit Var | 45.8 % | EPS | 48.7 ₹ | Industry PE | 15.8 |
📊 Financials: CHAMBLFERT has a market cap of 18,184 Cr. with quarterly PAT at 145 Cr., down from 565 Cr. (-45.8%). ROE at 20.8% and ROCE at 26.2% reflect strong efficiency and profitability. Debt-to-equity at 0.10 is very low, highlighting a healthy balance sheet. EPS of 48.7 ₹ supports earnings visibility, though profit volatility is notable.
💹 Valuation: The stock trades at a P/E of 9.32, well below the industry average of 15.8, suggesting undervaluation. P/B ratio is ~1.8 (454/254), reasonable for the sector. PEG ratio of 0.40 highlights attractive growth potential relative to earnings. Intrinsic value appears higher than current price, offering margin of safety.
🏢 Business Model: CHAMBLFERT operates in fertilizers and agrochemicals, benefiting from agricultural demand and government support. Its competitive advantage lies in scale, efficient operations, and strong return metrics. However, profitability is sensitive to raw material costs and seasonal demand cycles.
📈 Entry Zone: With RSI at 54.8 (neutral), MACD slightly positive, and price near DMA 50 and 200, accumulation around 440–460 ₹ looks favorable. Long-term holding is justified given undervaluation, strong ROE, and low leverage, but investors should monitor profit stability.
Positive
- 📌 Strong ROE of 20.8% and ROCE of 26.2%.
- 📌 Low debt-to-equity ratio (0.10) ensures financial stability.
- 📌 EPS of 48.7 ₹ supports earnings visibility.
- 📌 Dividend yield of 2.20% adds income appeal.
Limitation
- ⚠️ Quarterly PAT declined sharply (-45.8%).
- ⚠️ Profitability sensitive to raw material costs.
- ⚠️ Dividend yield is moderate compared to peers.
Company Negative News
- ❌ Decline in FII holdings (-0.56%) indicates reduced foreign investor confidence.
Company Positive News
- ✅ Increase in DII holdings (+0.74%) shows domestic institutional support.
- ✅ Strong ROE and ROCE metrics highlight operational efficiency.
Industry
- 🏦 Fertilizer sector benefits from agricultural demand and government subsidies.
- 🏦 Industry P/E at 15.8 suggests CHAMBLFERT trades at a discount.
Conclusion
🔑 CHAMBLFERT is fundamentally strong with undervaluation relative to peers, low debt, and solid return metrics. Despite profit volatility, long-term investors may consider entry around 440–460 ₹ for better risk-reward balance. The company remains a resilient player in the fertilizer sector with strong fundamentals and income appeal.
For deeper insights, you could explore a peer comparison or a fertilizer sector outlook to see how CHAMBLFERT stacks up against competitors.