DINESH

Chambal Fertilizers

Latest CMP 443
Today's Change ▼ -0.14%
52-Week High / Low 556 | 407
Price Date: 14-Aug-2026
Recommendation Sell
Target Price 510
Expected Upside 7.3%
Forecast Horizon 2 Years
Historical CAGR 17.5%
1,000 Invested 15-Aug-2006
Today's Value 25,164
Investment Period 20 Years

Stock Snapshot

Post Results Return
-0.3%
Neutral Market Reaction
1-Year Target Price
482
2-Year Target Price
510
52-Week High / Low
556 / 407
20-Day Return
+1.2%
Market Cap (Cr.)
17,737
Current PE
9.8
P/BV Ratio
1.7
Dividend Yield
2.1%
Industry PE
16.2

Price Performance

Basis of our Recommendation

Chambal Fertilisers is navigating a complex landscape marked by geopolitical uncertainties and evolving agricultural demands. Management's focus on expanding its product portfolio, particularly through the Technical Ammonium Nitrate (TAN) segment, is pivotal for future revenue growth. The imminent launch of the TAN plant is expected to enhance earnings significantly, while the company's strategic initiatives in crop protection and specialty nutrients are set to bolster margins. However, potential disruptions from monsoon variability and the expiration of incentives for the G3 plant pose risks to long-term profitability. Vista's forecast reflects a contraction in revenue, yet an improvement in margins, supported by the company's conservative balance sheet and strategic positioning. The fertilizers and pesticides industry is currently expanding, benefiting from rising chemical prices, which enhances Chambal's pricing power. Over the next 12-24 months, key opportunities include the successful launch of new products and the expansion of the urea segment, while watchpoints include supply chain vulnerabilities and geopolitical pressures that could impact operational efficiency

👍 Why We Like This Stock

  • The upcoming launch of the Technical Ammonium Nitrate (TAN) plant is expected to significantly boost earnings
  • Management's focus on diversifying into high-margin crop protection and specialty nutrients is likely to enhance profitability
  • The company's conservative balance sheet supports financial stability and positions it well for future investments

Things To Watch Out For

  • Potential disruptions from monsoon variability could adversely affect agricultural demand and operational performance
  • The expiration of incentives for the G3 plant may lead to reduced profitability post-December 2026
  • Geopolitical tensions and supply chain vulnerabilities pose risks to margin stability and operational efficiency

Key Parameters

Balance Sheet Strength
Conservatively Financed
Market Share
Stable
Industry Outlook
Improving
Analyst View
Strong Buy
Dividend History
Consistent
FII Holdings
Stable

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 17,966 16,646 20,794 19,156 21,493
Profit Before Tax (Cr.) 1,801 2,353 2,578 2,478 2,614
PBT Margin 10.0% 14.1% 1239.8% 12.9% 12.2%
Net Profit (Cr.) 1,530 1,930 1,820 1,755 1,852
Earnings Per Share 38.2 48.2 45.4 43.8 46.2

Analyst Recommendations

Broker Recommendation Target Price Date
Elara Capital ▲ Buy 544 03-Aug-2026
Consensus Recommendation ▲ Strong Buy
Consensus Target 544
Coverage 1 Analysts
Analysts' Viewpoint
The upcoming TAN plant launch in Q2FY26 is a key driver for Chambal Fertilisers' anticipated profitability boost, complemented by strategic groundwork for a new Urea plant under the National Investment Policy for Urea-2026. Procurement efficiencies have bolstered the traded fertilizer business, enhancing EBITDA per tonne. However, the G3 plant faces potential profitability challenges post-2026 due to expiring incentives, with subdued returns expected in subsequent years, despite proactive growth measures.

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.