Stock Snapshot
Price Performance
Recommendation Rationale
Favorable growth outlook supported by strategic diversification and strong product pipeline.
Basis of our Recommendation
Chambal Fertilisers is strategically diversifying its operations with the imminent commissioning of a Technical Ammonium Nitrate (TAN) plant and a robust pipeline of new product launches in the Crop Protection Chemicals and Specialty Nutrients segments. Despite facing operational challenges such as geopolitical uncertainties and elevated costs, management remains optimistic about growth driven by government support and strategic sourcing. The company's focus on innovation and diversification positions it well for future earnings growth.
Why We Like This Stock
- Commissioning of the 240,000 MTPA TAN plant enhances industrial diversification
- Strong growth in asset-light Crop Protection Chemicals and Specialty Nutrients segments
- Robust pipeline of new product launches supports future revenue growth
Things To Watch Out For
- Operational challenges from geopolitical uncertainties and elevated energy costs
- Execution risks highlighted by an unscheduled urea plant stoppage
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 17,966 | 16,646 | 20,794 | 24,286 | 27,454 |
| Profit Before Tax (Cr.) | 1,801 | 2,353 | 2,578 | 3,096 | 3,476 |
| PBT Margin | 10.0% | 14.1% | 12.4% | 12.7% | 12.7% |
| Net Profit (Cr.) | 1,530 | 1,930 | 1,820 | 2,193 | 2,462 |
| EPS | 38.2 | 48.2 | 45.4 | 54.7 | 61.5 |
Company Overview
Show Company Profile
Chambal Fertilisers and Chemicals Limited, together with its subsidiaries, produces and sells fertilizers primarily in India. The company operates through Own Manufactured Fertilisers; Complex Fertilisers; Crop Protection Chemicals and Speciality Nutrients; and Others segments. It offers urea; and other agri-inputs, including di-ammonium phosphate, muriate of potash, and triple super phosphate; NPK fertilizers; and technical grade agrochemicals, as well as formulated products, such as insecticides, fungicides, and herbicides under the Uttam brand. The company was incorporated in 1985 and is based in New Delhi, India.