Chemfab Alkalis Ltd. (CHEMFAB) AI Stock Analysis

• Market Cap: ₹8.29B
• Dividend Yield: 0.22%
• Average Volume (3M): 1.01K
• Price to Earnings (P/E): 152.4
• Beta (1Y): 1.18
• Revenue Growth: 7.59%
• EPS Growth: -129.63%
• Country: IN
• Employees: 210
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.77
• Shares Outstanding: 14,363,702
• 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: ₹725.00
• Price Target Upside: 25.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: ₹725.00 ▲(25.64% 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 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. has a solid financial position with operational efficiency and strong cash flow management. Despite negative net income, low leverage and a strong equity base provide stability.

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	437.21M	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: 577.05
• 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 577.05 is below the 20-day moving average (MA) of 612.21, below the 50-day MA of 645.73, and below the 200-day MA of 781.80, indicating a bearish trend. The MACD of -18.42 indicates Positive momentum. The RSI at 31.72 is Neutral, neither overbought nor oversold. The STOCH value of 4.88 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	70 Neutral	₹11.05B	12.40	―	1.06%	7.47%	-3.69%
SHREEPUSHK	67 Neutral	₹13.00B	19.46	―	0.50%	16.35%	55.49%
TNPETRO	64 Neutral	₹9.59B	12.21	―	1.13%	8.83%	58.08%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KOTHARIPET	60 Neutral	₹8.25B	12.89	―	0.71%	4.37%	-5.12%
MANALIPETC	54 Neutral	₹12.53B	40.91	―	0.67%	-8.24%	8.89%
CHEMFAB	52 Neutral	₹8.29B	152.41	―	0.22%	7.59%	-129.63%

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.