⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
CHAMBLFERT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | CHAMBLFERT | Market Cap | 17,611 Cr. | Current Price | 439 ₹ | High / Low | 742 ₹ |
| Stock P/E | 9.25 | Book Value | 241 ₹ | Dividend Yield | 2.28 % | ROCE | 27.6 % |
| ROE | 20.3 % | Face Value | 10.0 ₹ | DMA 50 | 443 ₹ | DMA 200 | 482 ₹ |
| Chg in FII Hold | -2.68 % | Chg in DII Hold | 0.65 % | PAT Qtr | 565 Cr. | PAT Prev Qtr | 602 Cr. |
| RSI | 50.6 | MACD | -5.89 | Volume | 11,22,185 | Avg Vol 1Wk | 10,33,429 |
| Low price | 400 ₹ | High price | 742 ₹ | PEG Ratio | 1.23 | Debt to equity | 0.00 |
| 52w Index | 11.6 % | Qtr Profit Var | 11.9 % | EPS | 47.5 ₹ | Industry PE | 17.9 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT declined from 602 Cr. to 565 Cr., showing short-term weakness. EPS at 47.5 ₹ remains strong, supported by consistent profitability.
- Margins & Returns: ROE at 20.3% and ROCE at 27.6% are excellent, reflecting strong efficiency and shareholder returns.
- Debt Profile: Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet, ensuring financial stability.
- Cash Flow: Dividend yield of 2.28% highlights healthy cash generation and shareholder-friendly policies.
💹 Valuation Indicators
- P/E Ratio: 9.25 vs Industry PE of 17.9 → undervalued relative to peers.
- P/B Ratio: Current Price 439 ₹ vs Book Value 241 ₹ → P/B ~1.82, reasonable for the sector.
- PEG Ratio: 1.23 → suggests fair valuation relative to growth prospects.
- Intrinsic Value: Appears undervalued compared to industry benchmarks, offering entry potential.
🏢 Business Model & Competitive Advantage
- Chambal Fertilisers operates in agrochemicals and fertilizers, benefiting from India’s agricultural demand.
- Debt-free structure and strong ROE/ROCE provide resilience and efficiency.
- Competitive advantage lies in scale, distribution network, and consistent profitability.
📈 Technical & Entry Zone
- Stock trading at 439 ₹, near 50 DMA (443 ₹) and below 200 DMA (482 ₹).
- RSI at 50.6 indicates neutral momentum; MACD negative suggests mild short-term weakness.
- Entry Zone: Attractive between 420–440 ₹ for accumulation, with long-term holding potential.
✅ Positive
- Debt-free balance sheet ensures financial stability.
- Strong ROE (20.3%) and ROCE (27.6%).
- Undervalued compared to industry PE.
⚠️ Limitation
- Quarterly PAT decline from 602 Cr. to 565 Cr. shows short-term weakness.
- FII holdings decreased (-2.68%), reflecting cautious foreign sentiment.
📉 Company Negative News
- No major recent negative news, but profit decline and reduced FII holdings raise caution.
📈 Company Positive News
- Increase in DII holdings (+0.65%) signals domestic institutional confidence.
- Strong dividend yield (2.28%) supports shareholder returns.
🏭 Industry
- Fertilizer sector benefits from government support and agricultural demand.
- Industry PE at 17.9 indicates moderate valuations compared to Chambal’s undervaluation.
- Competition from other agrochemical and fertilizer companies remains a challenge.
🔮 Conclusion
- CHAMBLFERT shows strong fundamentals with debt-free status, high returns, and undervaluation relative to peers.
- Short-term profit decline and reduced FII interest are risks but manageable given sectoral demand.
- Recommendation: Accumulate in the 420–440 ₹ range for long-term holding, focusing on agricultural growth and government-backed demand.