Chemfab Alkalis Ltd. (CHEMFAB) AI Stock Analysis

• Market Cap: ₹8.27B
• Dividend Yield: 0.24%
• Average Volume (3M): 1.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: 5.19%
• EPS Growth: -152.09%
• Country: IN
• Employees: 210
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -1.40
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ₹545.00 ▲(6.61% Upside)

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

Operational Efficiency

Chemfab's operational efficiency supports cost management and profitability, enhancing its ability to sustain growth and competitiveness.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, supporting long-term strategic initiatives.

Cash Flow Management

Effective cash flow management ensures liquidity and supports investment in growth opportunities, reinforcing financial resilience.

Negative Factors

Negative Net Income

Negative net income can hinder reinvestment and shareholder returns, posing challenges to financial sustainability and growth.

Decline in Stockholders' Equity

A decline in equity may indicate financial strain, potentially impacting the company's ability to fund operations and growth initiatives.

Inconsistent Revenue Growth

Inconsistent revenue growth can affect long-term planning and investment, challenging the company's ability to maintain market position.

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. exhibits 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: 511.20
• 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 511.2 is below the 20-day moving average (MA) of 534.35, below the 50-day MA of 579.65, and below the 200-day MA of 720.96, indicating a bearish trend. The MACD of -22.83 indicates Negative momentum. The RSI at 33.62 is Neutral, neither overbought nor oversold. The STOCH value of 69.12 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	₹12.74B	19.07	―	0.50%	28.67%	50.12%
TNPETRO	66 Neutral	₹10.86B	13.82	―	1.15%	8.27%	195.27%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAYAGROGN	60 Neutral	₹11.22B	12.58	―	1.16%	0.69%	-7.54%
KOTHARIPET	60 Neutral	₹8.57B	13.38	―	0.77%	-4.92%	1.29%
CHEMFAB	52 Neutral	₹8.27B	-122.15	―	0.24%	5.19%	-152.09%
MANALIPETC	49 Neutral	₹11.34B	23.35	―	0.77%	-2.41%	178.19%

Chemfab Alkalis Ltd. Corporate Events

Chemfab Alkalis Allots 6,000 Shares Under Employee Stock Options Scheme

Chemfab Alkalis Limited has announced the allotment of 6,000 equity shares to an employee under its Employee Stock Options Scheme (CAESOS 2020). This move is part of the company’s ongoing efforts to incentivize and retain talent, potentially enhancing employee satisfaction and aligning their interests with the company’s growth objectives.

Chemfab Alkalis Announces 16th AGM with Key Agenda Items

Chemfab Alkalis Limited has announced its 16th Annual General Meeting (AGM) scheduled for September 12, 2025, to be conducted via video conferencing. Key agenda items include the adoption of financial statements, reappointment of a director, declaration of a dividend, ratification of the cost auditor’s remuneration, approval of commission payments to non-executive directors, and the appointment of a new independent director. These decisions could impact the company’s governance and shareholder returns, indicating a focus on financial transparency and strategic board composition.

Chemfab Alkalis Sets Dividend Record Date Ahead of AGM

Chemfab Alkalis Limited has announced the record date for its dividend payment as September 5, 2025, and the book closure period from September 6 to September 12, 2025, in preparation for its 16th Annual General Meeting (AGM). The AGM is scheduled for September 12, 2025, and will be conducted through video conferencing, reflecting the company’s adaptation to modern communication methods and ensuring shareholder engagement.