ScoreWhy is Chemfab Alkalis Ltd ?
1
Poor long term growth as Operating profit has grown by an annual rate -6.47% of over the last 5 years
2
With a fall in Net Sales of -16.36%, the company declared Very Negative results in Sep 25
- The company has declared negative results for the last 10 consecutive quarters
- PAT(Q) At Rs -2.01 cr has Fallen at -274.8% (vs previous 4Q average)
- NET SALES(Q) At Rs 76.56 cr has Fallen at -12.3% (vs previous 4Q average)
- OPERATING PROFIT TO INTEREST (Q) Lowest at 2.81 times
3
With ROCE of 1.8, it has a Very Expensive valuation with a 1.7 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -44.05%, its profits have fallen by -75.8%
4
Despite the size of the company, domestic mutual funds hold only 0.25% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
5
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -44.05% returns
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commodity Chemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Chemfab Alka. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Chemfab Alka.
-56.05%
-0.89
49.30%
Sensex
8.49%
0.44
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.04%
EBIT Growth (5y)
-28.88%
EBIT to Interest (avg)
28.40
Debt to EBITDA (avg)
0.94
Net Debt to Equity (avg)
0.29
Sales to Capital Employed (avg)
0.78
Tax Ratio
49.26%
Dividend Payout Ratio
2.74%
Pledged Shares
0
Institutional Holding
0.36%
ROCE (avg)
10.65%
ROE (avg)
6.91%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
39
Price to Book Value
1.53
EV to EBIT
688.36
EV to EBITDA
21.49
EV to Capital Employed
1.41
EV to Sales
2.10
PEG Ratio
NA
Dividend Yield
0.30%
ROCE (Latest)
1.80%
ROE (Latest)
0.82%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-22What is not working for the Company
OPERATING PROFIT TO INTEREST(Q)
Lowest at 0.96 times
PAT(Q)
At Rs -4.45 cr has Fallen at -670.5% (vs previous 4Q average
INTEREST(Latest six months)
At Rs 3.97 cr has Grown at 26.43%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 0.89 cr
DEBT-EQUITY RATIO(HY)
Highest at 0.29 times
NET SALES(Q)
Lowest at Rs 68.14 cr
PBDIT(Q)
Lowest at Rs 1.94 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 2.85%
PBT LESS OI(Q)
Lowest at Rs -7.56 cr.
Loading Valuation Snapshot...
Here's what is not working for Chemfab Alka.
Net Sales - Quarterly
At Rs 68.14 cr has Fallen at -20.8% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 86.01 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Operating Profit to Interest - Quarterly
Lowest at 0.96 times and Fallen
each quarter in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -7.56 cr has Fallen at -1309.6% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 0.63 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs -4.45 cr has Fallen at -670.5% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 0.78 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Latest six months
At Rs 3.97 cr has Grown at 26.43%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Net Sales - Quarterly
Lowest at Rs 68.14 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 1.94 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 2.85%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs -7.56 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 0.89 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio - Half Yearly
Highest at 0.29 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income - Quarterly
Highest at Rs 2.77 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
