Chemfab Alkalis Ltd. (CHEMFAB) AI Stock Analysis

• Market Cap: ₹5.84B
• Dividend Yield: 0.28%
• Average Volume (3M): 1.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: 5.19%
• EPS Growth: -152.09%
• Country: IN
• Employees: 210
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -3.09
• Shares Outstanding: 14,373,702
• 10 Day Avg. Volume: 463
• 30 Day Avg. Volume: 1,011
• PEG Ratio: 1.21
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 3.18
• P/FCF Ratio: 26.61
• 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: 52 Neutral
• Price Target: ₹409.00 ▼(-3.98% Downside)

Chemfab Alkalis Ltd. has a solid financial foundation with strong operational efficiency and cash flow management. However, the stock is currently in a bearish technical position, and the valuation is concerning due to negative net income and low dividend yield. These factors contribute to a moderate overall stock score.

Positive Factors

Balance Sheet Strength

A strong equity base and relatively low debt-to-equity ratio reduce financial risk and preserve borrowing capacity. This balance-sheet strength provides flexibility to fund capex, R&D, or acquisitions and supports resilience through industry cycles without reliance on high leverage.

Cash Flow Generation

Improving operating cash flow and meaningful free cash flow growth indicate durable ability to convert operations into cash. Reliable cash generation supports reinvestment, debt reduction, or shareholder returns and underpins financial flexibility even if reported earnings are volatile.

Margin Improvement

Significant gross margin improvement along with rising EBIT and EBITDA margins point to structural efficiency gains—better pricing, cost control, or product mix. Sustained margin expansion can magnify profits from modest revenue and improve long-term returns on invested capital.

Negative Factors

Negative Net Income

A negative net income undermines retained earnings and can erode shareholder equity over time. Persistent losses constrain internal funding for growth or dividends, may necessitate external financing, and increase execution risk until profitability is restored.

Equity Erosion

A decline in stockholders' equity weakens the capital buffer that absorbs shocks and supports lending lines. Continued erosion would reduce financial flexibility, potentially raise borrowing costs, and limit the company's ability to fund investments or withstand future operational setbacks.

Inconsistent Revenue Growth

Inconsistent top-line growth with only a modest increase limits predictability for margins and capacity utilization. Without steady revenue expansion, margin gains and cash-flow improvements may prove fragile, making long-term planning and sustained profit improvement more challenging.

Chemfab Alkalis Ltd. Business Overview & Revenue Model

Company Description

Chemfab Alkalis Limited manufactures and sells inorganic chemicals in India and internationally. It operates through Chemicals and Related Products/Services, and PVC-O Pipes segments. It offers caustic soda lye and flakes, liquid chlorine, hydrogen gas, hydrochloric acid, and sodium hypochlorite/bleach liquor products, as well as industrial grade and edible salt products. The company was formerly known as Teamec Chlorates Limited and changed its name to Chemfab Alkalis Limited in July 2017. Chemfab Alkalis Limited was founded in 1985 and is based in Chennai, India.

How the Company Makes Money

Chemfab Alkalis Ltd. generates revenue primarily through the sale of its chemical products, including caustic soda and chlorine, to a diverse clientele across multiple industries. The company operates on a business-to-business model, supplying large quantities of chemicals to manufacturers in sectors such as textiles, pulp and paper, and water treatment. Key revenue streams include bulk sales contracts, which provide stable and predictable income, and spot market sales, allowing for flexibility in pricing based on demand fluctuations. Additionally, strategic partnerships with industrial clients enhance its market reach and stability. Factors contributing to CHEMFAB's earnings also include efficient production processes that reduce costs and a focus on high-quality product delivery, which fosters long-term customer relationships and repeat business.

Chemfab Alkalis Ltd. Financial Statement Overview

Summary

Chemfab Alkalis Ltd. shows a solid financial position with strengths in operational efficiency and cash flow management. Despite a setback in net income, the company maintains a strong balance sheet with low leverage, providing a stable foundation for future growth.

Income Statement

Chemfab Alkalis Ltd. has demonstrated a mixed performance in recent years. The gross profit margin improved significantly from 2024 to 2025, indicating increased efficiency, but the net income turned negative, which is concerning. Revenue growth has been inconsistent, with a modest increase in 2025. However, the EBIT and EBITDA margins show a positive trend, suggesting operational improvements.

Balance Sheet

The company's balance sheet reflects a strong equity base with a relatively low debt-to-equity ratio, indicating low financial risk. The equity ratio is healthy, suggesting stability. However, the decline in stockholders' equity from 2024 to 2025 could be a potential concern if it continues.

Cash Flow

Chemfab Alkalis Ltd. has shown improvement in operating cash flow, with a strong operating cash flow to net income ratio despite the negative net income in 2025. Free cash flow has grown significantly, indicating better cash management. However, the free cash flow to net income ratio is concerning due to negative net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.49B	3.34B	3.27B	3.31B	2.71B	1.81B
Gross Profit	1.05B	1.16B	573.09M	1.57B	972.61M	604.57M
EBITDA	496.71M	444.34M	632.53M	1.13B	624.45M	250.16M
Net Income	-52.88M	-69.40M	263.23M	645.83M	287.47M	-81.31M
Balance Sheet
Total Assets	0.00	5.22B	5.00B	4.12B	3.52B	3.35B
Cash, Cash Equivalents and Short-Term Investments	211.84M	211.84M	76.98M	692.16M	328.37M	266.44M
Total Debt	0.00	843.41M	201.11M	23.57M	86.47M	315.46M
Total Liabilities	-3.80B	1.42B	1.13B	507.42M	541.82M	676.00M
Stockholders Equity	3.80B	3.80B	3.87B	3.61B	2.98B	2.67B
Cash Flow
Free Cash Flow	0.00	399.09M	-605.69M	349.82M	347.13M	380.96M
Operating Cash Flow	0.00	399.09M	313.54M	925.95M	549.10M	454.32M
Investing Cash Flow	0.00	-859.86M	-1.10B	-475.12M	-210.25M	-64.33M
Financing Cash Flow	0.00	587.23M	160.65M	-88.92M	-245.73M	-155.91M

Chemfab Alkalis Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 425.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CHEMFAB, the sentiment is Negative. The current price of 425.95 is above the 20-day moving average (MA) of 408.46, below the 50-day MA of 438.18, and below the 200-day MA of 634.10, indicating a bearish trend. The MACD of -9.87 indicates Negative momentum. The RSI at 43.36 is Neutral, neither overbought nor oversold. The STOCH value of 31.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CHEMFAB.

Chemfab Alkalis Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHREEPUSHK	68 Neutral	₹11.31B	15.99	―	0.52%	28.67%	50.12%
TNPETRO	66 Neutral	₹8.59B	7.36	―	1.14%	8.27%	195.27%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAYAGROGN	60 Neutral	₹8.77B	10.66	―	1.23%	0.69%	-7.54%
KOTHARIPET	60 Neutral	₹7.20B	10.43	―	0.81%	-4.92%	1.29%
CHEMFAB	52 Neutral	₹5.84B	-44.47	―	0.28%	5.19%	-152.09%
MANALIPETC	49 Neutral	₹10.21B	9.29	―	0.82%	-2.41%	178.19%

Chemfab Alkalis Ltd. Corporate Events

Chemfab Alkalis Publishes Q3 FY26 Investor Presentation for Stakeholders

Chemfab Alkalis Limited has submitted and published an investor presentation for the quarter ended December 31, 2025, as a voluntary disclosure to stock exchanges and on its website, aiming to provide shareholders and market participants with updated financial and business information. The move underscores the company’s emphasis on transparency and investor communication, offering stakeholders deeper insight into its quarterly performance and strategic position in the chemical sector.