Chemcon Speciality Chemicals Ltd (CHEMCON) AI Stock Analysis

• Market Cap: ₹5.50B
• Dividend Yield: N/A
• Average Volume (3M): 99.75K
• Price to Earnings (P/E): 36.6
• Beta (1Y): 0.90
• Revenue Growth: 2.76%
• EPS Growth: 30.68%
• Country: IN
• Employees: 220
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.39
• Shares Outstanding: 36,630,700
• 10 Day Avg. Volume: 27,423
• 30 Day Avg. Volume: 99,755
• PEG Ratio: 0.94
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 3.04
• P/FCF Ratio: 20.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ₹155.00 ▼(-25.25% Downside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

Chemcon Speciality Chemicals Ltd's overall stock score is primarily influenced by its balanced financial performance, which is offset by bearish technical indicators and a relatively high valuation. The strong balance sheet and operational efficiency are positive factors, but the stock's current downtrend and high P/E ratio present challenges. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Strong balance sheet / low leverage

A strong equity base and low debt-to-equity ratio provide durable financial resilience. This reduces refinancing risk, supports counter-cyclical investments in capacity or quality control, and gives management flexibility to sustain operations and meet customer qualification timelines without relying on external funding.

Healthy gross and operating margins

Sustained gross and operating margins indicate effective cost control and operational efficiency. This structural margin strength helps absorb raw material volatility, supports reinvestment in process quality and specialty grades, and underpins long-term profitability even if top-line growth is modest.

Efficient operating cash generation

Robust operating cash flow relative to net income shows the business converts earnings into cash reliably. Over several months this supports working capital needs for export and contract shipments, funds routine capex, and reduces dependence on external borrowing for sustaining production and customer supply commitments.

Negative Factors

Declining revenue and net margins

A trend of falling revenue growth and net margins is a persistent risk to sustainable earnings. It can reflect pricing pressure, adverse product mix toward lower-margin items, or challenges passing input-cost inflation to customers, limiting ability to fund investments or improve returns over the medium term.

Volatile free cash flow

Significant FCF volatility undermines planning for capex and working capital, creating uncertainty in funding growth or buffering supply-chain shocks. Over months this can force more conservative investment, increase reliance on short-term financing, and constrain the company’s ability to scale specialty product output.

Negative EPS growth

Negative EPS growth signals pressure on core profitability and retained earnings. Persisting EPS declines can limit internal funding for capacity upgrades, hinder ability to absorb margin shocks, and weaken measurable progress on improving returns to shareholders over a multi-month horizon.

Chemcon Speciality Chemicals Ltd Business Overview & Revenue Model

Company Description

Chemcon Speciality Chemicals Limited engages in the manufacture and sale of pharmaceutical intermediates, silanes, and oilfield chemicals in India. It offers oilfield chemicals, including calcium bromide liquid, calcium bromide powder, sodium bromide solution, and zinc bromide solution; pharmaceutical chemicals, such as hexamethyl disilazane, chloromethyl isopropyl carbonate, trimethyl chlorosilane, and hexamethyl disiloxane; and Silanes comprising hexamethyl disilazane, trimethyl chlorosilane, and hexamethyl disiloxane, as well as provides contract manufacturing services. The company also exports its products to United States, Italy, South Korea, Germany, the People's Republic of China, Japan, the United Arab Emirates, Serbia, Russia, Spain, Thailand, and Malaysia. The company was incorporated in 1988 and is based in Vadodara, India.

How the Company Makes Money

Chemcon makes money primarily by manufacturing and selling specialty chemicals to industrial customers, with revenue recognized from product sales (domestic and exports) typically based on contracted orders, shipment volumes, and realized selling prices. A key revenue stream comes from HMDS, a high-purity chemical used as an input in semiconductor and pharmaceutical-related processes, where customers pay for consistent quality, specifications, and supply reliability. Another major stream is inorganic bromides (including zinc bromide and calcium bromide), which are sold as specialty inputs for industrial applications (e.g., oil & gas completion/workover fluids and other specialty uses), generating revenue based on product grade, concentration/specification, and volume. Earnings are influenced by capacity utilization, product mix (higher-margin specialty grades vs. more commoditized products), export demand and customer qualification/approval cycles, and raw-material price movements (which affect gross margins depending on the company’s ability to pass through costs). Information on specific long-term partnerships, customer names, or contract structures is null.

Chemcon Speciality Chemicals Ltd Financial Statement Overview

Summary

Chemcon Speciality Chemicals Ltd demonstrates a balanced financial performance. The income statement shows operational efficiency but highlights pressures on revenue and net profit margins. The balance sheet is strong, with a solid equity base and low leverage, fostering financial resilience. Cash flow analysis indicates efficient operational cash generation but also reveals fluctuations in free cash flow, suggesting a need for careful cash management to sustain growth and investment.

Income Statement

Chemcon Speciality Chemicals Ltd shows a mixed performance in its income statement. The gross profit margin is healthy, indicating effective cost management. However, the net profit margin and revenue growth rate have been declining, which may point to challenges in maintaining profitability. Additionally, the EBIT and EBITDA margins are solid, suggesting operational efficiency despite recent revenue contractions.

Balance Sheet

The company's balance sheet reflects a strong equity position with a low debt-to-equity ratio, suggesting financial stability and low leverage risk. The return on equity is moderate, indicating reasonable profitability relative to shareholder investments but with room for improvement. The equity ratio further underscores the company's solid financial foundation, with equity constituting a significant portion of total assets.

Cash Flow

Chemcon's cash flow statement presents a cautious picture. The operating cash flow to net income ratio is robust, indicating efficient cash generation from operations. However, the free cash flow has been volatile, showing significant fluctuations, which could impact liquidity and investment capacity. The free cash flow to net income ratio also mirrors this variability, highlighting potential challenges in sustaining cash flow levels.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.17B	2.07B	2.67B	3.01B	2.57B	2.43B
Gross Profit	881.31M	869.50M	758.95M	1.27B	1.17B	1.09B
EBITDA	432.71M	328.58M	400.64M	840.11M	908.34M	852.15M
Net Income	248.87M	244.52M	191.93M	551.10M	627.57M	563.98M
Balance Sheet
Total Assets	5.48B	5.54B	5.45B	5.53B	4.98B	4.04B
Cash, Cash Equivalents and Short-Term Investments	1.25B	1.51B	230.80M	604.87M	1.12B	512.00M
Total Debt	2.62M	246.90M	427.39M	640.15M	360.20M	62.26M
Total Liabilities	350.98M	532.81M	688.34M	959.98M	808.06M	498.92M
Stockholders Equity	5.13B	5.01B	4.76B	4.57B	4.17B	3.54B
Cash Flow
Free Cash Flow	285.20M	309.45M	-308.77M	-334.54M	241.36M	331.71M
Operating Cash Flow	356.48M	405.17M	119.64M	127.43M	742.22M	650.30M
Investing Cash Flow	11.03M	-189.15M	-245.58M	-163.41M	-925.48M	-1.52B
Financing Cash Flow	-248.62M	-215.42M	-247.73M	120.41M	298.18M	1.11B

Chemcon Speciality Chemicals Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 207.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CHEMCON, the sentiment is Negative. The current price of 207.35 is above the 20-day moving average (MA) of 165.00, above the 50-day MA of 177.68, and below the 200-day MA of 211.63, indicating a bearish trend. The MACD of -6.92 indicates Positive momentum. The RSI at 32.59 is Neutral, neither overbought nor oversold. The STOCH value of 38.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CHEMCON.

Chemcon Speciality Chemicals Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHREEPUSHK	68 Neutral	₹9.93B	17.66	―	0.52%	28.67%	50.12%
CHEMBOND	66 Neutral	₹1.88B	34.22	―	1.11%	-37.34%	-45.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BODALCHEM	60 Neutral	₹5.45B	697.51	―	―	15.56%	2114.71%
HPIL	59 Neutral	₹1.43B	87.13	―	0.37%	42.23%	-50.43%
CHEMCON	57 Neutral	₹5.50B	36.57	―	―	2.76%	30.68%
ESTER	56 Neutral	₹9.19B	-20.11	―	0.56%	16.82%	―

Chemcon Speciality Chemicals Ltd Corporate Events

Chemcon Speciality Chemicals Closes Trading Window Ahead of Q3 FY26 Results

Chemcon Speciality Chemicals has announced that its trading window for dealing in company securities will be closed for designated persons and their immediate relatives from January 1, 2026, until 48 hours after the release of its unaudited financial results for the quarter and nine months ended December 31, 2025, in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct. The company has indicated that the date of the board meeting to consider and approve these unaudited results will be communicated separately, signaling the upcoming earnings disclosure period and reinforcing its compliance framework for insider trading safeguards.