CHAMBLFERT - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Analysis: Chambal Fertilisers & Chemicals Ltd (CHAMBLFERT) Fundamental Rating: 3.8

🧾 Core Financials

Profitability

Recent PAT: ₹130 Cr vs ₹534 Cr previous ➜ sharp drop likely seasonal or due to pricing headwinds.

EPS: ₹41.2 ➜ high earnings power relative to price.

Efficiency

ROCE: 27.9%, ROE: 20.6% ➜ strong return metrics—capital is being deployed effectively.

Leverage & Liquidity

Debt-to-equity: 0.01 ➜ nearly debt-free—major financial strength.

Dividend Yield: 1.88% ➜ decent income stream on top of potential capital appreciation.

📈 Valuation Indicators

Metric Value Commentary

P/E Ratio 12.9 Undervalued vs industry PE of 26.1

P/B Ratio ~2.44 (533 ₹ / 218 ₹) ➜ reasonable pricing

PEG Ratio 6.64 High—growth not keeping up with earnings valuation

🔍 Conclusion: Appears modestly undervalued on P/E and P/B, but PEG flags caution due to slowing growth.

🧪 Business Model & Moat

Chambal Fertilisers is a key player in urea and agri-inputs—a strategic sector in India’s farm-dependent economy.

Benefits from government subsidy schemes but vulnerable to global gas prices and regulatory changes.

Strengths

Robust distribution network.

High manufacturing capacity with consistent demand from rural markets.

Institutional sentiment

FII holding dropped by 3.07% ➜ possible valuation exit.

DII increased by 1.98% ➜ domestic confidence growing.

📉 Technical Indicators

RSI: 38.3 ➜ nearing oversold zone—good time to watch for reversal.

MACD: -6.91 ➜ bearish bias remains.

Price below 50 DMA and 200 DMA ➜ short-term downtrend continues.

✅ Suggested Entry Zone: ₹495–₹520 🧠 Value-oriented accumulation can begin here, especially if broader agri sentiment stabilizes.

📅 Long-Term Investment Outlook

A solid dividend-paying stock with strong return metrics and minimal debt.

Hold for long-term if

You expect agri policy tailwinds and input cost stability.

You want exposure to essential commodities with defensive earnings potential.

You're comfortable with cyclical swings tied to monsoon, subsidy flow, and raw material pricing.

Ready for a fertilizer sector roundup or peer check with GNFC, Coromandel or Deepak Fertilisers? I can run you a side-by-side analysis for sharper clarity.

Edit in a page