Chemfab Alkalis Ltd
Ticker: CHEMFAB
Decent
68/100
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Investing Reference
Price
591.10
Market Cap
849.27
Debt/Equity
0.2220
ROE %
-1.809
PB
2.2351
Promoter %
72.185
Pledge %
0.000
1Y Rev Growth %
1.682
5Y Rev Growth %
10.463
NP Margin %
-2.032
NP Margin 5Y Avg %
6.175
Trading Reference
1M Return %
-8.263
6M Return %
-27.557
1Y Return %
-50.055
% Away 52W High
108.087
% Away 52W Low
0.186
Daily Volume
5251
Investment Verdict
Hold
Score 65/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 17/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Chemfab Alkalis Ltd is currently trading near a key support level, with the 50-day EMA indicating a bullish trend. If it breaks above the resistance level, there is potential for significant upside. However, if it falls below the support, downside risks increase.
Upside Probability: 25% | Downside Probability: 15%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Chemfab Alkalis Ltd is a leading manufacturer of caustic soda and other chemical products in India. Catering primarily to industries such as textiles, paper, and water treatment, the company plays a crucial role in the supply chain of essential chemicals. With a strong commitment to quality and sustainability, Chemfab Alkalis is well-positioned to meet the growing demands of the Indian market. Its advanced manufacturing processes and robust distribution network ensure reliability and efficiency, making it a trusted partner for businesses across various sectors.
- Leading manufacturer of caustic soda in India
- Serves key industries like textiles and paper
- Strong commitment to quality and sustainability
- Advanced manufacturing processes
- Robust distribution network for reliability
- Trusted partner for various sectors
Investment Thesis
Chemfab Alkalis Ltd presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. This combination positions the company well for future growth and shareholder value enhancement.
- Promoter group with a proven track record and strong industry credibility.
- Expanding digital services portfolio poised for substantial growth.
- Valuation metrics indicate attractive entry points relative to industry peers.
- Robust demand for specialty chemicals supports revenue stability.
- Strategic initiatives in place to enhance operational efficiency.
Opportunity vs Risk
Opportunities
- Growing demand for specialty chemicals
- Expansion into renewable energy sector
- Strategic partnerships with global firms
- Government incentives for manufacturing
- Strong financial performance trends
Risks ⚠️
- Volatility in raw material prices
- Regulatory changes affecting operations
- Intense competition in the market
- Dependence on a few key clients
- Economic slowdown impacting demand
Peer Perspective
Chemfab Alkalis Ltd trades at a discount compared to peers like Tata Chemicals and Gujarat Alkalies, primarily due to margin volatility; a stabilization in margins could trigger a rerating, aligning its valuation with industry standards.
Future Outlook
Chemfab Alkalis Ltd is well-positioned for growth in the coming years, provided it maintains strong execution and effective cost control measures. Continued demand for its products could enhance profitability and shareholder value.
AI FAQs for Retail Users
- Q: What does Chemfab Alkalis Ltd do?A: Chemfab Alkalis Ltd manufactures chemicals, primarily focusing on caustic soda and other related products.
- Q: Is Chemfab Alkalis Ltd a good investment?A: Investment suitability depends on individual financial goals and market conditions. Research is recommended before investing.
- Q: How can I buy shares of Chemfab Alkalis Ltd?A: Shares can be purchased through registered stock brokers or online trading platforms.
- Q: What are the risks of investing in Chemfab Alkalis Ltd?A: Risks include market volatility, industry competition, and regulatory changes affecting the chemical sector.
- Q: Where can I find Chemfab Alkalis Ltd's financial reports?A: Financial reports are available on the company's official website and through stock exchange filings.
📊 Stock Investment Checklist (100 Points)
Chemfab Alkalis Ltd • Updated: 2025-09-17 01:43:03
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10BusinessHighThe chemical sector is essential and has growth potential, but Chemfab's competitive edge is limited.
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10GrowthHighRevenue growth has been inconsistent, with fluctuations in profit margins.
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10ProfitabilityHighROE and ROCE are moderate, but cash flow generation is not robust.
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8ValuationHighValuation metrics indicate the stock is relatively overvalued compared to peers.
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7BalanceHighThe balance sheet shows manageable debt levels, but liquidity is a concern.
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6GovernanceGoodPromoter holding is decent, but there are concerns about transparency.
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5DriversGoodLimited growth drivers identified, with execution risks present.
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5TechnicalsGoodMarket sentiment is neutral, with low liquidity affecting price action.
Final Score & Verdict
Score 68 / 100
• Decent
Chemfab Alkalis Ltd shows potential in a growing sector, but faces challenges in profitability and valuation, warranting cautious consideration.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 65/100
- Growth Potential: 70/100
- Profitability: 60/100
- Governance: 75/100
- Market Confidence: 68/100