Chambal Fertilisers & Chemicals
Chambal Fertilisers & Chemicals
ChemicalsKey Fundamentals
SmallcapFertilizersChemicalsTapetide Score
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Key Insights
Strengths
1- Company has been maintaining a healthy dividend payout of 23.5%
Weaknesses
2- The company has delivered a poor sales growth of 10.3% over past five years.
- Debtor days have increased from 16.1 to 36.4 days.
Growth Rate
AI Analysis — Bull vs Bear
Chambal Fertilisers & Chemicals has a market capitalisation of about ₹16,807 crore and trades at a P/E of 8.7x and a P/B of 1.61x, with a dividend yield of 2.63%. Return on equity has stayed in a 19-22% band across 3, 5 and 10-year periods, and 10-year profit CAGR is 22%. Against that, 3-year sales CAGR is -9%, 5-year sales CAGR is 10.3%, debtor days have risen from 16.1 to 36.4, and the stock is down 20% over the past year.
- The stock trades at a P/E of 8.7x on a ₹16,807 crore market cap, which implies trailing earnings of roughly ₹1,930 crore. That is a low multiple next to a steady ROE of about 19-20%.
- Returns on capital have held up well: ROE was 20% last year, 19% over both 3 and 5 years, and 22% over 10 years. That points to profitability that survives commodity cycles.
- Profit grew at a 24% CAGR over 3 years even though 3-year sales fell at -9%. Margins and cost efficiency improved after the high-price phase for fertiliser and gas eased.
- Over the long term, 10-year profit CAGR is 22% and 10-year stock CAGR is 22%. The business has compounded both earnings and shareholder value over a full decade.
- A dividend yield of 2.63% comes with a payout ratio of only 23.5%. About three-quarters of earnings are retained, so dividends are well covered and there is room for reinvestment or higher payouts.
- Growth has picked up recently: TTM sales grew 16% and TTM profit grew 10%, reversing the negative 3-year sales trend.
- The P/B of 1.61x implies a book value of about ₹10,400 crore. That is a modest premium to book for a company earning around 20% ROE.
- After a 20% price decline over 1 year, the valuation now sits at 8.7x earnings. Some cyclical and regulatory risk may already be reflected in the price.
- Sales have shrunk at a -9% CAGR over 3 years, and the 5-year sales CAGR of 10.3% is flagged as weak. Revenue depends heavily on fertiliser prices, gas costs and government subsidy pass-throughs rather than volume growth alone.
- Debtor days more than doubled, from 16.1 to 36.4. This suggests slower collections, likely including subsidy receivables, which can tie up working capital and weaken cash conversion.
- The stock has fallen 20% over 1 year and returned only a 5% CAGR over 5 years. That is far below its 10-year return of 22% and suggests the market has de-rated the business.
- Profit growth over 5 years is only a 6% CAGR, against 22% over 10 years. The strong 24% 3-year figure comes off a weak base, and long-term earnings growth has clearly slowed.
- TTM profit growth of 10% lagged TTM sales growth of 16%, which points to margin pressure in the latest period.
- ROE has slipped from a 22% 10-year average to 19-20% in recent periods. Incremental returns may be falling as the company gets bigger or reinvests in lower-return areas.
- A payout ratio of 23.5% gives only a 2.63% yield. If growth stays muted, as the -9% 3-year sales CAGR suggests, shareholders get limited cash back while capital is retained without a clear growth payoff.
- A single-digit P/E of 8.7x is common for regulated, subsidy-linked fertiliser businesses. The low multiple may reflect ongoing policy risk rather than undervaluation.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Steady promoter open-market buying Oct 1
Promoter entity Earthstone Holding (Two) bought shares on the open market on Sep 1, 2, 7, 8, 9 and 29, 2026. The largest purchase was 104,192 shares on Sep 29, which lifted its holding to 14,982,737 shares (3.740%) from 3.657% after the Sep 1 purchase.
- ₹6 FY26 final dividend approved Sep 1
Shareholders approved a ₹6 per share final dividend for FY26 at the AGM held on September 1, 2026. Every resolution passed with the required majority.
- Nopany re-elected as director Sep 1
Shareholders re-elected director Chandra Shekhar Nopany at the September 1, 2026 AGM. This keeps the board and promoter-linked leadership unchanged.
- Small increments to promoter stake Oct 1
Each purchase is small. The 104,192-share buy on Sep 29 added only 0.026% to voting capital, and the six disclosed purchases total about 252,621 shares. The holding rose by about 0.08 percentage points over the month, so the signal matters more than the size.
TL;DR: Chambal Fertilisers had a supportive month. A promoter entity kept buying shares on the open market throughout September 2026, taking its stake to 3.740%, and shareholders approved a ₹6 FY26 final dividend without opposition. None of the articles covered operations, so they say nothing about urea and DAP volumes, gas costs, subsidy payments or margins, which are the main risks for the stock. The trend looks stable to improving, and the next quarterly results and any government subsidy announcements will show whether fundamentals back up the promoter buying.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 5,589 | 5,386 | 4,349 | 2,643 | 4,933 | 4,346 | 4,918 | 2,449 | 5,698 | 6,413 | 5,898 | 2,785 | 5,027 |
| Expenses | 4,956 | 4,771 | 3,720 | 2,477 | 4,181 | 3,556 | 4,140 | 2,285 | 4,937 | 5,571 | 5,078 | 2,530 | 4,201 |
| Operating Profit | 633 | 615 | 628 | 166 | 752 | 790 | 778 | 163 | 761 | 842 | 821 | 255 | 826 |
| OPM % | 11% | 11% | 14% | 6% | 15% | 18% | 16% | 7% | 13% | 13% | 14% | 9% | 16% |
| Other Income | 14 | 90 | 151 | 73 | 86 | 80 | 95 | 86 | 79 | 88 | 36 | 53 | 27 |
| Interest | 55 | 46 | 36 | 36 | 40 | 1 | 7 | 0 | 2 | 1 | 1 | 3 | 17 |
| Depreciation | 77 | 78 | 79 | 78 | 82 | 83 | 83 | 82 | 84 | 87 | 88 | 90 | 89 |
| PBT | 516 | 581 | 664 | 126 | 716 | 786 | 783 | 168 | 754 | 842 | 768 | 215 | 747 |
| Tax % | 34% | 34% | 31% | 23% | 37% | 32% | 32% | 22% | 27% | 23% | 24% | 21% | 30% |
| Net Profit | 339 | 381 | 459 | 97 | 448 | 536 | 534 | 130 | 549 | 649 | 586 | 169 | 524 |
| EPS in Rs | 8.14 | 9.15 | 11.04 | 2.42 | 11.19 | 13.39 | 13.34 | 3.25 | 13.7 | 16.19 | 14.64 | 4.22 | 13.07 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 9,733 | 9,008 | 7,553 | 7,541 | 10,095 | 12,206 | 12,719 | 16,069 | 27,773 | 17,966 | 16,646 | 20,794 | 20,123 |
| Expenses | 8,996 | 8,354 | 6,795 | 6,730 | 8,894 | 10,281 | 10,249 | 13,804 | 25,951 | 15,919 | 14,145 | 18,100 | 17,380 |
| Operating Profit | 737 | 654 | 759 | 811 | 1,200 | 1,925 | 2,470 | 2,265 | 1,822 | 2,047 | 2,501 | 2,694 | 2,743 |
| OPM % | 8% | 7% | 10% | 11% | 12% | 16% | 19% | 14% | 7% | 11% | 15% | 13% | 14% |
| Other Income | 103 | 32 | 133 | 172 | -2 | 192 | 470 | 374 | 222 | 326 | 329 | 240 | 203 |
| Interest | 164 | 267 | 255 | 157 | 247 | 504 | 291 | 109 | 320 | 173 | 48 | 7 | 21 |
| Depreciation | 216 | 111 | 92 | 85 | 119 | 287 | 289 | 300 | 308 | 313 | 330 | 349 | 354 |
| PBT | 459 | 308 | 544 | 740 | 832 | 1,327 | 2,360 | 2,231 | 1,416 | 1,887 | 2,452 | 2,578 | 2,572 |
| Tax % | 39% | 52% | 34% | 33% | 30% | 8% | 26% | 30% | 27% | 32% | 33% | 24% | — |
| Net Profit | 280 | 147 | 359 | 495 | 585 | 1,226 | 1,748 | 1,566 | 1,034 | 1,276 | 1,649 | 1,953 | 1,928 |
| EPS in Rs | 7.08 | 5.31 | 8.7 | 11.99 | 14.18 | 29.46 | 39.76 | 37.62 | 24.85 | 31.84 | 41.17 | 48.76 | 48.12 |
| Div. Payout % | 27% | 36% | 22% | 16% | 14% | 14% | 19% | 20% | 30% | 24% | 24% | 23% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 414 | 416 | 416 | 416 | 416 | 416 | 416 | 416 | 416 | 401 | 401 | 401 |
| Reserves | 1,837 | 1,451 | 1,707 | 2,089 | 2,467 | 3,123 | 4,833 | 5,983 | 6,652 | 6,873 | 8,327 | 10,007 |
| Borrowings | 4,089 | 5,317 | 4,619 | 6,079 | 9,045 | 10,113 | 3,936 | 4,337 | 3,358 | 1,874 | 99 | 1,068 |
| Other Liabilities | 1,298 | 939 | 1,315 | 877 | 1,997 | 880 | 1,062 | 2,553 | 2,344 | 2,361 | 2,580 | 2,927 |
| Total Liabilities | 7,638 | 8,123 | 8,057 | 9,462 | 13,925 | 14,533 | 10,247 | 13,289 | 12,770 | 11,509 | 11,407 | 14,402 |
| Fixed Assets | 2,948 | 1,793 | 1,162 | 1,234 | 6,905 | 6,701 | 6,480 | 6,358 | 6,262 | 6,423 | 6,221 | 6,110 |
| CWIP | 119 | 639 | 1,712 | 4,135 | 121 | 85 | 161 | 157 | 103 | 184 | 650 | 1,389 |
| Investments | 30 | 211 | 174 | 207 | 300 | 217 | 298 | 559 | 2,377 | 2,431 | 1,372 | 1,081 |
| Other Assets | 4,541 | 5,480 | 5,009 | 3,886 | 6,598 | 7,529 | 3,308 | 6,215 | 4,028 | 2,471 | 3,164 | 5,823 |
| Total Assets | 7,638 | 8,123 | 8,057 | 9,462 | 13,925 | 14,533 | 10,247 | 13,289 | 12,770 | 11,509 | 11,407 | 14,402 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 1,064 | -27 | 1,280 | 1,172 | -1,130 | 827 | 6,944 | -24 | 3,239 | 3,327 | 1,394 | 138 |
| Investing | -149 | -348 | -703 | -1,784 | -1,132 | -462 | -195 | -119 | -1,872 | -382 | 739 | -481 |
| Financing | -937 | 362 | -500 | 564 | 2,263 | -283 | -6,007 | -213 | -1,862 | -2,871 | -2,135 | 543 |
| Net Cash Flow | -22 | -12 | 76 | -49 | 2 | 82 | 742 | -356 | -495 | 73 | -2 | 200 |
| Free Cash Flow | 878 | -665 | 400 | -1,250 | -2,334 | 177 | 6,708 | -188 | 3,045 | 2,718 | 824 | -754 |
| CFO/OP | 159 | 17 | 191 | 170 | -76 | 56 | 295 | 14 | 193 | 179 | 71 | 32 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 119 | 156 | 147 | 123 | 175 | 166 | 34 | 49 | 23 | 4 | 8 | 36 |
| Inventory Days | 48 | 55 | 65 | 63 | 79 | 60 | 39 | 119 | 25 | 42 | 71 | 63 |
| Days Payable | 23 | 28 | 18 | 24 | 59 | 29 | 19 | 57 | 22 | 27 | 25 | 26 |
| Cash Conversion Cycle | 144 | 183 | 193 | 161 | 195 | 198 | 54 | 111 | 26 | 19 | 54 | 73 |
| Working Capital Days | 4 | 8 | 17 | 19 | -5 | 14 | 21 | 39 | 8 | 0 | 30 | 41 |
| ROCE % | 9% | 10% | 11% | 12% | 12% | 14% | 20% | 23% | 16% | 20% | 27% | 25% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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62 extracted metrics + investor summaries across FY10–FY27.
Documents
Frequently Asked Questions about Chambal Fertilisers & Chemicals
What does Chambal Fertilisers & Chemicals Ltd do?
Where is Chambal Fertilisers & Chemicals Ltd (CHAMBLFERT) listed?
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Does Chambal Fertilisers & Chemicals Ltd pay dividends?
What is the Return on Equity (ROE) of Chambal Fertilisers & Chemicals Ltd?
Company Information
Chambal Fertilisers & Chemicals Ltd is engaged in production of Urea from its own manufacturing plants. It also markets/ deals in other fertilisers and agri-inputs. It also has a Joint Venture for manufacture of Phospohric Acid in Morocco. The company was also engaged in Software business, However, in FY21, it sold assets and transferred certain liabilities of the business to cease the operations of the software business.[1]
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