Chemfab Alkalis Ltd. (CHEMFAB) AI Stock Analysis

• Market Cap: ₹5.15B
• Dividend Yield: 0.28%
• Average Volume (3M): 1.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• 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: 58 Neutral
• Price Target: ₹377.00 ▼(-11.49% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is anchored by relatively solid fundamentals (strong cash flow trends and a low-leverage balance sheet) but is held back materially by a weak technical setup (price below all key moving averages and bearish MACD) and profitability concerns reflected in the negative P/E.

Positive Factors

Cash generation

Chemfab's operating cash flow has strengthened and free cash flow has grown significantly, indicating durable internal funding capacity. Strong cash conversion supports reinvestment, working capital resilience and the ability to finance capex or pay down liabilities without relying on external capital.

Balance sheet health

A low leverage profile and healthy equity ratio reduce financial risk and increase flexibility across cycles. This structural strength supports the company's ability to absorb shocks, fund strategic initiatives, and negotiate better financing terms, underpinning long-term operational stability.

Improving operating margins

Notable improvement in gross profit and rising EBIT/EBITDA margins point to better cost control or pricing power. Sustained margin gains enhance cash generation and return on invested capital, making earnings more resilient to revenue volatility over the medium term.

Negative Factors

Net income losses

The move to negative net income is a durable concern: persistent losses erode retained earnings and shareholder equity, constrain dividend capacity and limit internal funding. Without a clear path back to profitability, the company may need external capital or cost restructuring.

Declining shareholders' equity

A year-over-year decline in stockholders' equity signals capital erosion, likely tied to losses. Continued decline weakens the balance sheet buffer, can worsen leverage ratios and reduce strategic optionality for investments or M&A, increasing long-term financial vulnerability.

Inconsistent revenue & collapsing EPS

Modest, inconsistent revenue growth combined with a dramatic negative EPS swing indicates top-line instability translating into severe earnings volatility. This undermines confidence in sustained margin improvement and makes forecasting cash flows and returns on investment more uncertain.

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

Financials are solid overall: cash flow strength and improving operating margins support the score, and the balance sheet shows low leverage and a healthy equity ratio. The main drag is profitability, with net income turning negative and stockholders’ equity declining from 2024 to 2025.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.44B	3.34B	3.27B	3.31B	2.71B	1.81B
Gross Profit	1.16B	1.16B	573.09M	1.57B	972.61M	604.57M
EBITDA	461.50M	444.34M	632.53M	1.13B	624.45M	250.16M
Net Income	-67.65M	-69.40M	263.23M	645.83M	287.47M	-81.31M
Balance Sheet
Total Assets	5.67B	5.22B	5.00B	4.12B	3.52B	3.35B
Cash, Cash Equivalents and Short-Term Investments	12.04M	211.84M	76.98M	692.16M	328.37M	266.44M
Total Debt	1.09B	843.41M	201.11M	23.57M	86.47M	315.46M
Total Liabilities	1.88B	1.42B	1.13B	507.42M	541.82M	676.00M
Stockholders Equity	3.79B	3.80B	3.87B	3.61B	2.98B	2.67B
Cash Flow
Free Cash Flow	-652.58M	399.09M	-605.69M	349.82M	347.13M	380.96M
Operating Cash Flow	112.34M	399.09M	313.54M	925.95M	549.10M	454.32M
Investing Cash Flow	-511.78M	-859.86M	-1.10B	-475.12M	-210.25M	-64.33M
Financing Cash Flow	204.85M	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: Positive
• 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 380.93, above the 50-day MA of 398.82, and below the 200-day MA of 581.48, indicating a bearish trend. The MACD of -9.44 indicates Positive momentum. The RSI at 37.64 is Neutral, neither overbought nor oversold. The STOCH value of 46.82 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	₹9.59B	17.66	―	0.52%	28.67%	50.12%
TNPETRO	66 Neutral	₹7.35B	11.95	―	1.14%	8.27%	195.27%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAYAGROGN	60 Neutral	₹8.11B	22.24	―	1.23%	0.69%	-7.54%
KOTHARIPET	60 Neutral	₹6.15B	10.26	―	0.81%	-4.92%	1.29%
CHEMFAB	58 Neutral	₹5.15B	-33.35	―	0.28%	5.19%	-152.09%
MANALIPETC	54 Neutral	₹7.68B	3.95	―	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.