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Chambal Fertilisers and Chemicals Ltd Stock Analysis

Mid Cap
Evaluated by 2366 users | BSE: 500085 | NSE: CHAMBLFERT |
Fertilizers

Chambal fertilizers & chemicals is part of KK Birla Group. It was promoted by Zuari Industries in the year 1985. Since more than two decades company has contributed to the food security of the country with responsibility. Its three hi-tech nitrogenous...

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 and 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'20TTM
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.) 4,6546,4627,3417,9828,8828,7707,4117,53010,09512,20612,719
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.) 7.547.438.859.048.726.078.6311.0116.4929.5532.36
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.) 3942.7447.8652.8155.9452.9460.8569.5877.7994.02127.16
Adjusted Net Profit 3143093683743612523594586861,2301,347
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 and 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 18% 36.6% 26.8% 86.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20TTM
Return on Equity (%) 20.8218.1719.5317.9216.0411.1715.1616.8622.3634.3729.26
Operating Profit Margin (%) 15.8513.6211.659.449.148.428.9711.4112.1716.5619.39
Net Profit Margin (%) 6.744.785.024.694.072.884.856.096.810.0810.59
Debt to Equity 1.5322.572.081.712.181.641.942.642.460.58
Working Capital Days 103120196218177195248209186206172
Cash Conversion Cycle 558516018215216119215914616588
Entity Percentage Holding
Promoters 60.38%
Institutions 23.45%
Non-Institutions 16.07%
Others 0.11%
Pledged *0.5211.8018.8521.2825.1724.9221.6319.4020.7219.08
* Pledged shares as % of Promoter's holding (%)

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

Past 10 year's financial track record indicates that Chambal Fertilisers and 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 and Chemicals Ltd's performance infers:

Chambal Fertilisers and Chemicals Ltd earnings have grown by 27.7%, whereas share price has appreciated 36.6% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

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

Chambal Fertilisers and Chemicals Ltd share price has appreciated 13.5% annually over the past ten years.

Chambal fertilizers & chemicals is part of KK Birla Group. It was promoted by Zuari Industries in the year 1985. Since more than two decades company has contributed to the food security of the country with responsibility. Its three hi-tech nitrogenous fertiliser (urea) plants are located at Gadepan in Kota district of Rajasthan. The three plants have an installed in leading agri states in India. These plants were commissioned in 1994, 1999 and 2019

Chambal fertilizers & chemicals is part of KK Birla Group. It was promoted by Zuari Industries in the year 1985. Since more than two decades company has contributed to the food security of the country with responsibility. Its three hi-tech nitrogenous fertiliser (urea) plants are located at Gadepan in Kota district of Rajasthan. The three plants have an installed in leading agri states in India. These plants were commissioned in 1994, 1999 and 2019 respectively. These plants use state-of-the-art technology from Denmark, Italy, United States and Japan.

The Gadepan III Plant commissioned recently is a state-of-art fertilizer unit. It is among the most efficient plants in the world and uses the latest technologies from KBR, USA and Toyo Engineering Corporation, Japan.

The Company caters to the need of the farmers in many states in northern, eastern, central and western regions of India and is the lead fertiliser supplier in the State of Rajasthan, Madhya Pradesh, Punjab and Haryana. The company holds highest market share among private sector Urea manufacturers in the country. The company has further strengthened its position as lead fertilizer manufacturer in India after the commissioning of Gadepan III plant.

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.

To promote sustainable farming practices, Chambal has a well-structured farmer advisory programme. Under this programme, the company organizes crop seminars, product and field demonstrations and farmer meets. Soil and water analysis is also conducted for free at Chambal's laboratories and based on the results; Chambal experts emphasize on balance use of fertilisers.

To encourage the new age farmer, a website, 'uttamkrishi.com', provides information on the weather, suitable cropping techniques and markets in Hindi language. 'Hello Uttam' toll-free telephonic helplines have been set up to answer the queries raised by farmers. Unemployed youth from villages are enrolled as 'Uttam Krishi Salhakars'. They are trained in the latest farming techniques and provide specialised services to farmers.

The company has won the Sword of Honour from the British Safety Council for two consecutive years. It has been awarded ISO 14001 (Environment Management System Standard), ISO 9001 (Quality Management System Standard) and OHSAS 18001 (Occupational Health and Safety Management System Standard) certifications.

Chambal is committed to its social responsibilities and has invested in water harvesting, healthcare, rural infrastructure, education, skill development and women empowerment. Chambal constantly tries to improve the quality of life in the areas where it operates. The Company has won several coveted awards for its Corporate Social Responsibility and Environmental footprints.

Business area of the company

Chambal Fertilisers is one of the largest private sector fertilizer producers in India. It caters to the need of the farmers in many states in northern, eastern, central and western regions of India and is the lead fertiliser supplier in the State of Rajasthan. The Company is engaged in manufacturing of Urea with three Urea plants at Gadepan, District Kota, Rajasthan. Besides, the company is engaged in Marketing of fertilizers and agrochemical products.

Awards and Recognitions

  • 1997-98: National Productivity Council, India - Shrestha Pramanpatra (Certificate of Excellence) for giving recognition to production performance in Fertiliser Industry.
  • 1999-00: Fertiliser Association of India - First Prize in Production / Technical Discipline.
  • 2001-02: Fertiliser Association of India - Best Technical Innovation Award.
  • 2002-03: Fertiliser Association of India - Award for Best Performance among Nitrogenous Fertiliser Plants.
    2008-09: West Central Railway- Best Managed Siding Award - for Minimum average detention to Rakes.
  • 2008-09: West Central Railway Platinum Card Customer Award - Railway Freight Payment over Rs. 100 Crores.
  • 2009-10: Fertiliser Association of India - Best Technical Innovation.
  • 2009-10: West Central Railway - Highest Rail-Coefficient Award.
  • 2009-10: West Central Railway - Platinum Card Customer Award.
  • 2010-11: West Central Railway - Platinum Card Customer Award.
  • 2010-11: West Central Railway - Highest Rail-Coefficient Award.
  • 2011-12: 2010-11 Fertiliser Association of India - Runners Up Award for Best Performance among Nitrogenous Fertiliser Plants.
  • 2015-16: 'Best Production Performance' for Urea plant from Fertilizer Association of India (FAI).
  • 2017-18: Best Production Performance for Urea plant from Fertilizer Association of India (FAI).

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
  • 2015: Third III Plant Zero date announced in March
  • 2017: Certified EMS ISO 14001:2015 by BSI
  • 2017: Certified QMS ISO 9001:2015 by BSI
  • 2017: Certified OSHAS 18001:2007 by BSI
  • 2018: Third urea plant commissioned
  • 2019: Third urea plant starts commercial production on 1st January
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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