Chemplast Sanmar Limited (CHEMPLASTS) AI Stock Analysis

• Market Cap: ₹34.96B
• Dividend Yield: N/A
• Average Volume (3M): 29.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: 6.50%
• EPS Growth: -70.69%
• Country: IN
• Employees: 1,374
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -7.50
• 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): -14.55
• Revenue Forecast (FY): ₹43.71B

• Rating: 41 Neutral
• Price Target: ₹211.00 ▼(-20.87% Downside)
• Action: Reiterated Date: 11/26/25
• Date: Action: Reiterated 11/26/25

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 chemical product mix

Chemplast’s operations span chlorochemicals and petrochemicals, supplying domestic and export markets. This diversified product mix reduces dependence on one downstream cycle, supporting more resilient volumes and demand across industrial applications over a multi-month horizon.

Volume-driven manufacturing model

A volume-driven, manufacturing-based revenue model gives the company structural leverage to benefit from higher utilization and steady industrial consumption. If utilization and commodity realizations recover, fixed-cost absorption can restore gross margins and improve long-term cash generation.

Moderate equity financing buffer

The balance-sheet note that equity financing is at a moderate level indicates a non-negligible capital base. While leverage is elevated, this equity buffer provides some solvency headroom and optionality for restructuring, refinancing or incremental capital to stabilize operations.

Negative Factors

Declining revenues and margins

The company has shown a persistent decline in revenue and shrinking gross and EBITDA margins through 2022–2025, with EBIT turning negative in 2024. Sustained top-line and margin deterioration indicate structural competitiveness or demand issues that undermine medium-term profitability.

Elevated leverage

A high debt-to-equity ratio from rising total debt increases interest and principal service obligations, reducing financial flexibility. In a capital-intensive chemical business, elevated leverage raises refinancing and solvency risk and constrains investment in maintenance or growth capex.

Negative free cash flow and weak cash conversion

Persistent negative free cash flow and unstable operating-cash-to-net-income conversion indicate earnings are not converting to cash. This cash burn limits ability to deleverage, sustain operations, or invest in efficiency, posing durable liquidity and operational risk over months.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Negative
• Last Price: 266.65
• 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:CHEMPLASTS, the sentiment is Negative. The current price of 266.65 is below the 20-day moving average (MA) of 279.24, above the 50-day MA of 266.40, and below the 200-day MA of 363.43, indicating a bearish trend. The MACD of -8.52 indicates Positive momentum. The RSI at 30.55 is Neutral, neither overbought nor oversold. The STOCH value of 4.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹63.55B	12.10	―	3.68%	-7.53%	42.74%
EPIGRAL	67 Neutral	₹36.97B	33.65	―	0.46%	8.51%	32.37%
GHCL	66 Neutral	₹43.08B	12.54	―	2.10%	-5.14%	7.25%
INDIAGLYCO	65 Neutral	₹57.35B	23.54	―	0.47%	5.61%	33.63%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ACI	58 Neutral	₹66.60B	72.75	―	0.78%	-3.15%	-22.30%
CHEMPLASTS	41 Neutral	₹34.96B	-8.77	―	―	6.50%	-70.69%

Chemplast Sanmar Limited Corporate Events

Chemplast Sanmar Publishes Postal Ballot Notice, Updates Exchanges

Chemplast Sanmar Limited has notified the stock exchanges that it has published newspaper advertisements in Financial Express and Dinamani regarding the passing of resolutions through a postal ballot conducted via remote e-voting. The disclosure, made under SEBI’s Listing Regulations, underscores the company’s adherence to mandated transparency and shareholder communication requirements, with details also made available on its website for investor access.

The communication specifies the timing of the event and confirms that the information is being shared for record-keeping by the exchanges and stakeholders. While the exact nature of the resolutions is not detailed in the announcement, the process highlights ongoing corporate governance actions that may relate to routine or strategic matters requiring shareholder approval.

Chemplast Sanmar Seeks Shareholder Nod for Leadership Changes via Postal Ballot

Chemplast Sanmar Limited has initiated a postal ballot process via e-voting to seek shareholder approval for several board-level appointments and reappointments. The resolutions cover a short two-month extension for Managing Director Ramkumar Shankar from February 1, 2026, the appointment of S. Ganeshkumar as Director from April 1, 2026, and his subsequent three-year term as Managing Director starting the same date.

The company is also seeking to reappoint independent directors Aditya Jain, Sanjay Vijay Bhandarkar, Dr. Lakshmi Vijayakumar, and Prasad Raghava Menon for second five-year terms beginning April 26, 2026. This governance exercise, conducted through an e-voting window running from February 21 to March 22, 2026, underscores Chemplast Sanmar’s focus on ensuring leadership continuity and board stability, which is likely to support strategic consistency and reassure investors about long-term oversight.

Chemplast Sanmar Releases Q3 and 9M FY26 Investor Presentation

Chemplast Sanmar has released an investor presentation detailing its performance highlights for the third quarter and first nine months of FY 2026, and has notified both BSE and NSE of the disclosure. The presentation, made available on the company’s website, reflects the firm’s ongoing efforts to provide transparency on its operating and financial performance to investors and other market participants.

Chemplast Sanmar Publishes Q3 FY26 Unaudited Results in Newspapers

Chemplast Sanmar Limited has notified the stock exchanges that it has published its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. The results were released to investors through newspaper advertisements in the Financial Express (English) and Dinamani (Tamil) on February 8, 2026, in line with disclosure requirements under Regulation 47 of SEBI’s Listing Obligations and Disclosure Requirements, underscoring the company’s compliance with regulatory norms and its ongoing communication with stakeholders.

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.