Chemplast Sanmar Limited (CHEMPLASTS) AI Stock Analysis

• Market Cap: ₹41.20B
• Dividend Yield: N/A
• Average Volume (3M): 29.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: 6.50%
• EPS Growth: -70.69%
• Country: IN
• Employees: 1,374
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -3.20
• Shares Outstanding: 158,109,570
• 10 Day Avg. Volume: 71,842
• 30 Day Avg. Volume: 29,984
• PEG Ratio: 2.02
• Price to Book (P/B): 3.33
• Price to Sales (P/S): 1.59
• P/FCF Ratio: -32.75
• 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: 41 Neutral
• Price Target: ₹249.00 ▼(-6.62% Downside)

Chemplast Sanmar Limited's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, shrinking margins, and high debt levels. The technical analysis further supports a bearish outlook with strong downward momentum. The valuation metrics indicate that the stock is overvalued given its negative earnings and lack of dividend yield. These factors collectively suggest significant risks for potential investors.

Positive Factors

Diversified product streams

Chemplast’s dual focus on chlor-alkali and petrochemical intermediates creates a durable business base across multiple industrial value chains. This structural product diversification supports steadier long-term volumes and revenue sources versus single-product peers, aiding resilience.

Geographic market exposure

Serving both domestic and export customers spreads demand risk and provides structural access to global end-markets. Over months, diversified geography can smooth regional demand cycles, support steady order flows, and allow the company to capture overseas price/recovery opportunities.

Positive top-line growth

Reported revenue growth of ~6.5% indicates the company can increase sales volume or improve mix despite industry cyclicality. Sustained revenue expansion over several quarters can enable scale benefits, better capacity utilization and provide a platform to restore margins if costs are controlled.

Negative Factors

High leverage

Elevated debt levels reduce financial flexibility and raise refinancing and interest risks, especially in a cyclical chemical industry. Over months this constrains capacity to invest in maintenance or growth, increases default risk if cash generation remains weak, and limits strategic options.

Negative free cash flow

Persistent negative free cash flow erodes liquidity and forces reliance on debt or external funding. Over a multi-month horizon this limits the company’s ability to fund capital spending, pay down debt, or improve working capital, increasing operational and solvency pressure.

Shrinking margins and net losses

Worsening margins and recent net losses signal structural operating deterioration—lower profitability reduces retained earnings and weakens ROE. If margins remain depressed, the firm will struggle to generate earnings to service debt, invest in efficiency or restore competitive positioning.

Chemplast Sanmar Limited Business Overview & Revenue Model

Company Description

Chemplast Sanmar Limited manufactures and markets specialty chemicals in India. The company offers specialty paste PVC resins; custom manufactured chemicals, such as organic chemicals, and phyto chemicals comprising colchicine and thiocolchicoside; chlorochemicals, such as caustic chlor, solvents, and refrigerant gas; industrial salt; and hydrogen peroxide. It offers specialty paste PVC resins and custom manufactured chemicals for agro-chemical, pharmaceutical, and fine chemicals sectors. The company was formerly known as Chemicals and Plastics India Limited and changed its name to Chemplast Sanmar Limited in September 1995. The company was founded in 1967 and is based in Chennai, India. Chemplast Sanmar Limited is a subsidiary of Sanmar Holdings Limited.

How the Company Makes Money

Chemplast Sanmar Limited generates revenue primarily through the sale of its chemical products, which include PVC resins, caustic soda, and specialty chemicals. The company's revenue model is heavily reliant on the volume of production and sales, along with pricing strategies that respond to market demand and raw material costs. Key revenue streams include long-term contracts with major industries and clients, which provide a stable income source. Additionally, Chemplast Sanmar benefits from strategic partnerships and collaborations that enhance its distribution network and market reach. Factors contributing to its earnings also include operational efficiencies, cost management practices, and the ability to innovate and introduce new products to meet evolving market needs.

Chemplast Sanmar Limited Financial Statement Overview

Summary

Chemplast Sanmar Limited is facing significant financial challenges, with declining revenues, shrinking margins, and increasing debt levels. The company’s profitability has been severely impacted, resulting in net losses and negative free cash flow. These financial pressures are compounded by high leverage, which poses a risk to the company’s financial health.

Income Statement

Chemplast Sanmar Limited has shown a volatile revenue trend with a decline in total revenue from 2022 to 2025. The gross profit margin has decreased over the years, and the company has faced significant net losses in recent years, particularly in 2024 and 2025. The EBIT margin turned negative in 2024, indicating operational challenges. The EBITDA margin also shrank, suggesting reduced operational efficiency.

Balance Sheet

The company's balance sheet indicates a high debt-to-equity ratio due to increased total debt, which poses a risk to financial stability. The equity ratio demonstrates a moderate level of equity financing. However, the return on equity has been negative in recent years correlating with the net losses, which is a concern for investors.

Cash Flow

Chemplast Sanmar has struggled with negative free cash flow in recent years, indicating a cash burn issue. Operating cash flow to net income ratio has been unstable, reflecting inconsistent cash generation relative to earnings. The company's ability to generate free cash flow relative to net income is also poor, highlighting potential liquidity risks.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	43.01B	43.46B	39.16B	49.41B	58.85B	37.93B
Gross Profit	13.89B	15.93B	11.10B	17.29B	20.87B	16.07B
EBITDA	1.30B	2.19B	1.06B	4.68B	12.54B	14.45B
Net Income	-1.99B	-1.10B	-1.58B	1.52B	6.49B	4.10B
Balance Sheet
Total Assets	0.00	65.03B	60.30B	58.37B	56.01B	44.86B
Cash, Cash Equivalents and Short-Term Investments	5.87B	5.87B	7.31B	11.30B	10.21B	3.24B
Total Debt	0.00	18.42B	15.48B	10.19B	8.81B	21.27B
Total Liabilities	-20.68B	44.35B	43.30B	39.78B	38.96B	48.36B
Stockholders Equity	20.68B	20.68B	17.01B	18.58B	17.05B	-3.50B
Cash Flow
Free Cash Flow	0.00	-2.11B	-8.64B	-641.60M	7.88B	10.21B
Operating Cash Flow	0.00	1.72B	-2.45B	3.55B	9.01B	10.76B
Investing Cash Flow	0.00	-4.07B	-5.24B	-2.17B	1.08B	21.52B
Financing Cash Flow	0.00	660.90M	3.82B	-269.90M	-3.13B	-30.17B

Chemplast Sanmar Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 266.65
• 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:CHEMPLASTS, the sentiment is Positive. The current price of 266.65 is above the 20-day moving average (MA) of 257.14, above the 50-day MA of 264.10, and below the 200-day MA of 377.35, indicating a neutral trend. The MACD of -4.13 indicates Negative momentum. The RSI at 50.00 is Neutral, neither overbought nor oversold. The STOCH value of 56.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:CHEMPLASTS.

Chemplast Sanmar Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNFC	70 Outperform	₹68.54B	10.83	―	3.68%	-7.53%	42.74%
EPIGRAL	67 Neutral	₹44.81B	13.14	―	0.46%	8.51%	32.37%
GHCL	66 Neutral	₹51.00B	10.00	―	2.10%	-5.14%	7.25%
INDIAGLYCO	65 Neutral	₹58.82B	20.51	―	0.47%	5.61%	33.63%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ACI	58 Neutral	₹69.79B	40.78	―	0.78%	-3.15%	-22.30%
CHEMPLASTS	41 Neutral	₹41.20B	-18.88	―	―	6.50%	-70.69%

Chemplast Sanmar Limited Corporate Events

Chemplast Sanmar Says No Undisclosed Events Behind Recent Share Price Surge

Chemplast Sanmar Limited has responded to a query from the National Stock Exchange of India regarding a recent significant movement in its share price and trading volumes. The company stated that it is not aware of any undisclosed events or price-sensitive information, beyond what is already in the public domain, that would materially affect its operations or performance, indicating that the recent stock volatility is not driven by any non-public corporate developments.

Chemplast Sanmar Schedules Earnings Call to Discuss Q2 & H1 FY26 Performance

Chemplast Sanmar Limited has announced an upcoming earnings conference call scheduled for November 14, 2025, to discuss its operational and financial performance for the second quarter and the first half of the fiscal year 2026. This call is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting investor decisions and market positioning.