🌿 Chambal Fertilisers and Chemicals Share Analysis 2025: Financials, Technicals & Investment Insights
🧬 Company Overview
Chambal Fertilisers and Chemicals Ltd. is one of India’s largest private sector fertilizer producers, primarily manufacturing urea and other agri-input products. With an extensive dealer network and robust infrastructure, the company plays a crucial role in supporting Indian agriculture.
1. 📊 Fundamental Analysis of Chambal Fertilisers
| Metric | FY 2024-25 (Estimated) |
|---|---|
| Revenue | ₹21,400 Crore |
| Net Profit | ₹1,320 Crore |
| Earnings Per Share (EPS) | ₹31.2 |
| Price to Earnings Ratio (P/E) | 9.1x |
| Dividend Yield | 4.20% |
| Return on Equity (ROE) | 21.5% |
| Debt to Equity Ratio | 0.55 |
| Market Cap | ₹11,500 Crore+ |
✔️ The company demonstrates healthy margins, strong cash flows, and consistent dividend payouts.
2. 📉 Technical Analysis of Chambal Fertilisers
📈 Price Movement (Last 1 Year)
- 52-Week High: ₹425
- 52-Week Low: ₹275
- Current Price: ₹385 (as of June 2025)
📌 Key Technical Indicators
| Indicator | Value | Interpretation |
|---|---|---|
| 20-Day Moving Avg | ₹378 | Trading slightly above support |
| 50-Day Moving Avg | ₹368 | Stable uptrend confirmed |
| RSI (14-day) | 58 | Neutral to mildly bullish |
| MACD | Bullish Cross | Momentum turning positive |
| Support Levels | ₹370, ₹350 | Strong buying interest zones |
| Resistance Levels | ₹405, ₹425 | Breakout above could trigger rally |
💡 Technicals show a steady accumulation phase, with potential upside breakout.
3. 🧩 SWOT Analysis of Chambal Fertilisers
| 💪 Strengths | ⚠️ Weaknesses |
|---|---|
| Largest urea producer in private sector | Dependency on subsidies |
| Strong distribution network | Limited export exposure |
| Consistent dividend payer | Commodity price volatility |
| 🚀 Opportunities | 🔥 Threats |
|---|---|
| Expansion into complex fertilisers | Regulatory shifts in urea pricing |
| Government support for agriculture | Global natural gas price fluctuations |
| Entry into specialty nutrients | Competitive pricing pressures |
4. 🌐 Macro and Microeconomic Analysis
🔺 Macroeconomic Factors
- Interest Rates: At 6.5%, favoring agri-credit expansion.
- Inflation: Food inflation under control; rural demand stable.
- GDP Growth: India’s GDP growth of ~7.2% supports agri-input growth.
🔻 Microeconomic Factors
- Fertilizer Subsidy Policy: Direct benefit transfer mechanisms support offtake.
- Crop Cycles: High MSP and monsoon dependence impact demand.
- Raw Material Imports: Global LNG and ammonia prices critical for urea cost.
🧠 Chambal benefits from supportive policies, though subsidy and input price volatility remain key factors.
5. 🔍 Peer Comparison
| Company | Revenue (₹ Cr.) | EPS (₹) | P/E Ratio | ROE (%) | Dividend Yield |
|---|---|---|---|---|---|
| Chambal Fertilisers | 21,400 | 31.2 | 9.1x | 21.5% | 4.2% |
| Coromandel International | 29,000 | 80.3 | 14.5x | 28.7% | 2.0% |
| GNFC | 9,450 | 100.4 | 7.5x | 19.2% | 3.5% |
| NFL | 14,100 | 12.5 | 6.8x | 9.8% | 2.8% |
📊 Chambal has a favorable mix of growth, value, and dividends compared to peers.
6. 🧾 Broker Recommendations
| Broker | Rating | Remarks |
|---|---|---|
| ICICI Direct | ⭐⭐⭐⭐ Buy | Consistent earnings & high dividend appeal |
| HDFC Securities | ⭐⭐⭐ Hold | Monitor urea policy changes |
| Motilal Oswal | ⭐⭐⭐⭐ Buy | Strong financials and rural focus |
🎯 Major analysts are optimistic on its dividend-led value investing appeal.
7. ✅ Conclusion: Is Chambal Fertilisers a Good Investment?
Chambal Fertilisers and Chemicals offers a compelling value-investment case, backed by:
- Industry leadership and scale in urea production.
- Strong and stable dividend history.
- Positive rural demand trends and government support.
📌 Investment Verdict: ⭐⭐⭐⭐ (4.2/5)
Ideal for: Income-focused and long-term value investors.
📢 Disclaimer
The information provided in this blog is intended solely for educational and informational purposes. It does not constitute financial advice, stock recommendations, or an offer to buy or sell any securities. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions. Please note that stock prices, financial data, and company information mentioned in this article are subject to change on trading days. For the most recent and accurate updates, kindly refer to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) official websites. Incorporating images can effectively use internal links to enhance user engagement and navigation.
