Chambal Fertilisers and Chemicals Ltd Stock Analysis

BSE: 500085 | NSE: CHAMBLFERT | Fertilizers | Mid Cap

BSE Share Price 23-Sep-2022 18:01
329.55 -16.50 (-4.77%)

DeciZen - Make an Informed Decision on Chambal Fert & Chem

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Chambal Fert & Chem Price Chart

P/E Ratio (SA) :
10.15
Market Cap :
13,716.1 Cr.
52-wk low :
260.8
52-wk high :
516
Bole Toh?

1. Is Chambal Fertilisers and Chemicals Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Chambal Fertilisers and Chemicals Ltd is a below average quality company.

2. Is Chambal Fertilisers and Chemicals Ltd undervalued or overvalued?

The key valuation ratios of Chambal Fertilisers and Chemicals Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is Chambal Fertilisers and Chemicals Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Chambal Fertilisers and Chemicals Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Chambal Fert & Chem:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 7.4%7.4%7.3%6.5%7.8%7.5%8.5%12.6%13.6%13.7%-
Value Creation Index -0.5-0.5-0.5-0.5-0.5-0.5-0.4-0.10.00.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 7,3417,9828,8828,7707,4117,53010,09512,20612,71916,06919,820
YoY Gr. Rt. %-8.7%11.3%-1.3%-15.5%1.6%34.1%20.9%4.2%26.3%-
Adj EPS 8.998.76.18.61116.729.931.930.132.5
YoY Gr. Rt. %-2.2%-3.5%-30.4%42.2%27.6%51.4%79.4%6.7%-5.7%-
BVPS (₹) 47.952.855.952.960.969.677.894127.1148.5158.3
Adj Net Profit 3683743612523594586941,2451,3281,2521,351
Cash Flow from Ops. -1,240843986-26.71,2491,163-1,1558436,951-32.5-
Debt/CF from Ops. -4.15.44-180.23.34.8-7.411.40.6-130.7-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 9.1%16.7%16.8%26.3%
Adj EPS 14.6%28.4%21.7%-5.7%
BVPS 13.419.524.116.9
Share Price 16.5% 18.7% 27% -3.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 19.517.91611.215.216.922.634.828.821.821.2
Op. Profit Mgn % 11.79.49.18.4911.412.316.719.514.111.5
Net Profit Mgn % 54.74.12.94.96.16.910.210.47.86.8
Debt to Equity 2.62.11.72.21.61.92.62.50.70.7-
Working Cap Days 196218177195248209186206139910
Cash Conv. Cycle 160182152161192159146165108610

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 16.76%

Net Profit is growing at healthy rate in last 3 years 21.74%

Debt to equity has declined versus last 3 years average to 0.69

Sales growth is good in last 4 quarters at 60.60%

Return on Equity has declined versus last 3 years average to 21.20%

Latest Financials - Chambal Fertilisers and Chemicals Ltd.

Standalone Consolidated
TTM EPS (₹) 32.5 36.7
TTM Sales (₹ Cr.) 19,820 19,820
BVPS (₹.) 158.3 161.3
Reserves (₹ Cr.) 6,171 6,295
P/BV 2.08 2.04
PE 10.15 8.99
From the Market
52 Week Low / High (₹) 260.75 / 515.95
All Time Low / High (₹) 8.50 / 515.95
Market Cap (₹ Cr.) 13,716
Equity (₹ Cr.) 416.2
Face Value (₹) 10
Industry PE 10.2

Management X-Ray of Chambal Fert & Chem :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *25.1724.9221.6319.4020.7219.0818.0919.1718.8624.20
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Chambal Fert & Chem

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Chambal Fertilisers and Chemicals Ltd

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
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