Chemfab Alkalis Ltd. (CHEMFAB) AI Stock Analysis

• Market Cap: ₹9.78B
• Dividend Yield: 0.18%
• Average Volume (3M): 940.00
• Price to Earnings (P/E): 152.4
• Beta (1Y): 1.20
• Revenue Growth: 7.59%
• EPS Growth: -129.63%
• Country: IN
• Employees: 210
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): 1.77
• Shares Outstanding: 14,363,702
• 10 Day Avg. Volume: 1,346
• 30 Day Avg. Volume: 940
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹725.00
• Price Target Upside: 5.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: ₹725.00 ▲(5.38% Upside)

The stock score is driven by a strong financial foundation and cash management, but is hindered by weak technical indicators and poor valuation metrics. The absence of positive earnings guidance further affects the score.

Chemfab Alkalis Ltd. Business Overview & Revenue Model

Company Description

Chemfab Alkalis Ltd. (CHEMFAB) is a leading chemical manufacturing company in India, specializing in the production of chlor-alkali products. The company's core products include caustic soda, liquid chlorine, hydrogen, and hydrochloric acid, which are essential for various industrial applications such as textiles, paper, aluminum, and chemicals. With a focus on quality and sustainability, Chemfab Alkalis Ltd. serves a diverse range of sectors, ensuring consistent supply and innovation in its offerings.

How the Company Makes Money

Chemfab Alkalis Ltd. generates revenue primarily through the sale of its chlor-alkali products, such as caustic soda and liquid chlorine, which are sold to various industries including textiles, paper, and chemicals. The company's key revenue streams include long-term supply contracts with industrial clients, which provide a stable income base, and spot sales, which allow for flexibility and the ability to capitalize on market demand fluctuations. Additionally, the company may engage in partnerships or strategic alliances to enhance its distribution network and market reach, contributing to its earnings.

Chemfab Alkalis Ltd. Financial Statement Overview

Summary

Chemfab Alkalis Ltd. shows operational efficiency and strong cash flow management, with a healthy balance sheet. However, the negative net income in 2025 and decline in stockholders' equity are areas of concern.

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	Mar 2025	Mar 2023	Mar 2024	Mar 2022	Mar 2020
Income Statement
Total Revenue	3.34B	3.31B	3.27B	2.71B	2.04B
Gross Profit	1.16B	1.57B	573.09M	972.61M	921.60M
EBITDA	437.21M	1.13B	632.53M	624.45M	554.94M
Net Income	-69.40M	645.83M	263.23M	287.47M	254.46M
Balance Sheet
Total Assets	5.22B	4.12B	5.00B	3.52B	3.48B
Cash, Cash Equivalents and Short-Term Investments	211.84M	692.16M	76.98M	328.37M	7.08M
Total Debt	843.41M	23.57M	201.11M	86.47M	427.99M
Total Liabilities	1.42B	507.42M	1.13B	541.82M	728.41M
Stockholders Equity	3.80B	3.61B	3.87B	2.98B	2.76B
Cash Flow
Free Cash Flow	399.09M	349.82M	-605.69M	347.13M	-80.38M
Operating Cash Flow	399.09M	925.95M	313.54M	549.10M	542.28M
Investing Cash Flow	-859.86M	-475.12M	-1.10B	-210.25M	-581.42M
Financing Cash Flow	587.23M	-88.92M	160.65M	-245.73M	29.05M

Chemfab Alkalis Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 688.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 688 is below the 20-day moving average (MA) of 729.00, below the 50-day MA of 751.45, and below the 200-day MA of 867.22, indicating a bearish trend. The MACD of -24.80 indicates Positive momentum. The RSI at 39.11 is Neutral, neither overbought nor oversold. The STOCH value of 13.97 is Positive, 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
JAYAGROGN	67 Neutral	₹11.90B	13.35		1.04%	7.47%	-3.69%
SHREEPUSHK	67 Neutral	₹12.99B	22.02		0.38%	16.35%	55.54%
TNPETRO	64 Neutral	₹8.91B	11.34		1.15%	8.83%	58.12%
CHEMFAB	52 Neutral	₹9.78B	152.41		0.18%	7.59%	-129.63%
MANALIPETC	48 Neutral	₹11.35B	37.03		1.14%	-8.24%	8.99%
Sector *	44 Neutral	C$923.76M	-8.68	-0.23%	2.69%	24.53%	-41.45%

Chemfab Alkalis Ltd. Corporate Events

Chemfab Alkalis Limited Announces Quarterly Financials and Board Changes

Chemfab Alkalis Limited announced the approval of its unaudited financial results for the quarter ended June 30, 2025, along with the allotment of 4,000 equity shares under its Employee Stock Options Scheme. The company also approved amendments to the scheme, subject to shareholder approval, and accepted the resignation of Mr. C. S. Ramesh as a Non-Executive and Non-Independent Director. Consequently, the Board reconstituted several committees to accommodate this change, reflecting the company’s ongoing governance adjustments.