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Chambal Fertilisers & Chemicals Ltd. Stock Analysis

Mid Cap
Evaluated by 2184 users | BSE: 500085 | NSE: CHAMBLFERT |
Fertilizers
Chambal fertilizers & chemicals is part of KK Birla Group .It has three divisions catering agri products, shipping & textiles. Chambal Fertilisers and Chemicals is one of the largest private sector fertilizer producers in India. It was promoted by Zuari Industries in the year...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Chambal Fertilisers & Chemicals Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 9.63%8.34%7.4%7.43%7.26%6.54%7.77%7.46%8.47%12.5%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4,6546,4627,3417,9828,8828,7707,4117,53010,09512,206
Y-o-Y Gr. Rt.-38.8%13.6%8.7%11.3%-1.3%-15.5%1.6%34.1%20.9%
Adjusted EPS (Rs.) 7.547.438.859.048.726.078.6311.0116.4929.55
Y-o-Y Gr. Rt.--1.5%19.1%2.2%-3.5%-30.4%42.2%27.6%49.8%79.2%
Book Value per Share (Rs.) 3942.7447.8652.8155.9452.9460.8569.5877.7994.02
Adjusted Net Profit 3143093683743612523594586861,230
Net Op. Cash Flow (Rs. Cr.) 579-583-1,240843986-26.71,2491,163-1,155843
Debt to Cash Flow from Ops 4.29-6.1-4.125.44-180.173.324.82-7.411.41
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Chambal Fertilisers & Chemicals Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 11.3%6.6%18.1%20.9%
Adjusted EPS 16.4%27.7%50.7%79.2%
Book Value per Share 10.310.915.620.9
Share Price 6.6% 22.9% 3.8% 1.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 20.8218.1719.5317.9216.0411.1715.1616.8622.3634.37
Operating Profit Margin (%) 15.8513.6211.659.449.148.428.9711.4112.1716.56
Net Profit Margin (%) 6.744.785.024.694.072.884.856.096.810.08
Debt to Equity 1.5322.572.081.712.181.641.942.642.46
Working Capital Days 103120196218177195248209186206
Cash Conversion Cycle 5585160182152161192159146165
Entity Percentage Holding
Promoters 60.34%
Institutions 22.22%
Non-Institutions 17.26%
Pledged *0.520.520.520.5211.8018.8521.2825.1724.9221.63
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Chambal Fertilisers & Chemicals Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Chambal Fertilisers & Chemicals Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Chambal Fertilisers & Chemicals Ltd.'s performance infers:

Chambal Fertilisers & Chemicals Ltd. earnings have grown by 27.7%, whereas share price has appreciated 22.9% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Chambal Fertilisers & Chemicals Ltd. share prices over the last 10 years. Here is what we found out:

Chambal Fertilisers & Chemicals Ltd. share price has appreciated 7.3% annually over the past ten years.

Chambal fertilizers & chemicals is part of KK Birla Group .It has three divisions catering agri products, shipping & textiles. Chambal Fertilisers and Chemicals is one of the largest private sector fertilizer producers in India. It was promoted by Zuari Industries in the year 1985. Its two hi-tech nitrogenous fertilizer (urea) plants are located at Gadepan in Kota district of Rajasthan.

Companies Ammonia Plant has a capacity to produce 1,350 MT per day and the Urea Plant has

Chambal fertilizers & chemicals is part of KK Birla Group .It has three divisions catering agri products, shipping & textiles. Chambal Fertilisers and Chemicals is one of the largest private sector fertilizer producers in India. It was promoted by Zuari Industries in the year 1985. Its two hi-tech nitrogenous fertilizer (urea) plants are located at Gadepan in Kota district of Rajasthan.

Companies Ammonia Plant has a capacity to produce 1,350 MT per day and the Urea Plant has a production capacity of 2,350 MT per day of Urea.

K K Birla's three daughter Jyotsna Poddar, Nandini Nopany and Shobhana Bhartia  would be on board in Chanmbal fertilizers & chemicals owning equal stakes and are jointly managing the company after the death of KK Birla . Saroj kumar Poddar son-in-law of birla would has been appointed as chairman .The company will get a new dimension of growth under these young management team.

Chambal Fertilisers caters to the need of the farmers in ten states in Northern, Central and Western regions of India and is the lead fertilizer supplier in the State of Rajasthan. The Company has a vast marketing network comprising 11 regional offices, 1,700 dealers and 20,000 village level outlets.

The Company has donned the mantle of providing all agri-products through a ‘single window’ to enable the farmer to buy all products from one source. The Company dealers provide Urea and other agri-inputs like DAP (Di-Ammonium Phosphate), MOP (Murate of Potash), SSP (Single Super Phosphate), pesticides and seeds. Most of these products are sourced from reputed suppliers and sold under the ‘Uttam’ umbrella brand. Today, the Company has attained a leadership position in the pesticide business in North India.

Division

Agri Inputs--Chambal agri inputs division has two hi-tech nitrogenous fertilizer, produces  1.73 million tonnes of urea per annum..Its brand ‘Uttam Veer’ has distribution network of 1500 dealers & 20,000 village level outlet spanning in ten states.It has two modern soil & water testing laboratories.

India Steamship--India Steamship Company was amalgamated with chambal fertilizers in year 2004 as its Shipping Division.

Fleet capacity of India Steamship is about dwt 5,00,000 MT that consists of five Aframax Tankers – Ratna Urvi, Ratna Puja, Ratna Shruti, Ratna Shradha and Ratna Namrata. India Steamship has placed orders for new ship builds with Hyundai Heavy Industries, Korea for four coated Aframax Tankers of 1,05,000 dwt each that are being built at Ulsan Shipyard. The first three vessels will be delivered in the middle of 2008 and the fourth vessel will join the fleet in April 2010.

Birla Textile Mills--Birla Textile Mills (BTM) produces synthetic yarn with intial capacity of 27,392 spindles. Currently, it has  totalcapacity 80208 spindles . BTM exports about 25% of its products mostly to European countries.

The unit has a Research and Development Department for development of new products to cater to the ever-changing demand in the international and domestic markets.

Milestones:

  • 1985 Aravali Fertilisers Limited incorporated
  • 1989 Aravali Fertilisers Limited renamed Chambal Fertilisers and Chemicals Limited
  • 1990 Land acquisition completed at Gadepan (Kota) Rajasthan
  • 1993 First urea plant commissioned in October
  • 1993 Company's Initial public offering
  • 1993 Company listed on Stock Exchanges
  • 1994 First urea plant starts commercial production on 1st January
  • 1994 Company's flagship product branded as 'Uttam Veer Urea'
  • 1994 First urea rake dispatched
  • 1997 First overseas investment in a Joint Venture (IMACID) with OCP in Morocco
  • 1997 Chambal ki Chitthi launched (Initial print run - 20000 copies)
  • 1999 Second urea plant commissioned
  • 1999 Second urea plant starts commercial production
  • 2000 Uttam Bandhan programme launched
  • 2000 www.uttamkrishi.com launched
  • 2000 Certified IS0 14001:2004 by Det Norske Veritas (DNV)
  • 2005 Certified OSHAS 18001:2007 by Det Norske Veritas (DNV)
  • 2008 Certified IS0 9001:2008 by Det Norske Veritas (DNV)
  • 2010 Process Safety Management implemented
  • 2010 Urea production and sales crosses 2 million tonne mark
  • 2011 Marketing territory extended to eleven Indian states
  • 2012 Marketing territory extended to thirteen Indian states
  • 2012 Single Super Phosphate plant commissioned at Gadepan

AWARDS AND RECOGNITIONS

Associate Bodies
• 2011-12 , 2010-11 Fertiliser Association of India - Runners Up Award for Best Performance among Nitrogenous Fertiliser Plants.
• 2010-11 & 2009-10 West Central Railway - Platinum Card Customer Award.
• 2010-11 & 2009-10 West Central Railway - Highest Rail-Coefficient Award.
• 2009-10 Fertiliser Association of India - Best Technical Innovation.'

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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