Chembond Chemicals Limited

Basic Materials — Specialty Chemicals · NSE

₹234.00−₹19.56 (−7.71%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Chembond Chemicals Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Chembond Chemicals Limited engages in the manufacture, trading, and provision of services for specialty chemicals products in India.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees119

Annual revenue₹325 Cr

How does it make money?

Turns over ₹325 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 119 employees supports ₹2.73 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.73 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 21.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -26% while net margin moved +88% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-26%

Margin effect+88%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 9.5% a year
• Profit CAGR of 11.7%

Quality vs. Valuation

Company Quality

70/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

67/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

15.2x

1.4Y Median

16.6x

17 monthly readings · mean 15.8x · range 9.5x–20.2x

Sector Median

40.4x

median of 4 sector peers

🟡Currently trading close to its 1.4y median of 16.6x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 62% below the peer median of 40.4x.

vs. its own history

Fair

16.6x median over 17 months · -8%

vs. sector peers

Cheap

40.4x median of 4 peers · -62%

vs. generic bands

Fair

15x–35x

EV/EBITDA

12.2x

PEG

1.30

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 8.5% to 15.5% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 7.8% to 16.9%.
Return on capital is rising
ROCE has improved from 10.6% to 21.6%.
High return on capital employed
ROCE of 21.6% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 8.5% to 15.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 62% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 13%✓ 15.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 19%✓ 21.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 16.6x✓ 15.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹629 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.2x

Fair

Fairly valued against the generic band

P/B Ratio

3.04x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹15.37

Profitable

Profitable on a per-share basis

ROE

19.9%

Strong

Strong capital efficiency

ROCE

21.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

32.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

51.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.53%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

11.7%

Average

Average margins

Net Margin

11.0%

Good

Strong bottom-line conversion

Current Ratio

5.10

Comfortable

Healthy short-term liquidity

52W Range Position

70%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

239.3 / 253.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

43.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹439 Cr	₹282 Cr	₹291 Cr	₹325 Cr	-9.5%
EBITDA	₹37 Cr	₹44 Cr	₹45 Cr	₹50 Cr	+10.4%
EBITDA Margin	8.5%	15.5%	15.5%	15.5%	—
PAT (Net Profit)	₹25 Cr	₹30 Cr	₹31 Cr	₹35 Cr	+11.7%
EPS	₹9.33	₹11.2	—	₹13	+11.7%
ROE	7.8%	21.0%	17.8%	16.9%	—
ROCE	10.6%	28.8%	23.7%	21.6%	—
Total Debt	₹7 Cr	₹7 Cr	—	—	—
Free Cash Flow	-₹14 Cr	-₹75 Cr	₹5 Cr	₹1 Cr	—

🔴 Revenue has shrunk at 9.5% a year over 3 years.

🟢 EBITDA has grown at 10.4% a year over 3 years.

🟢 EBITDA Margin has risen from 8.5% to 15.5% over 3 years (+7.0 pts).

🟢 PAT (Net Profit) has grown at 11.7% a year over 3 years.

🟢 EPS has grown at 11.7% a year over 3 years.

🟢 ROE has risen from 7.8% to 16.9% over 3 years (+9.1 pts).

🟢 ROCE has risen from 10.6% to 21.6% over 3 years (+11.0 pts).

🟢 Free Cash Flow has turned positive, from -₹14 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹254 Cr

Total Liabilities

₹46 Cr

Cash & Equivalents

₹12 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.4%

Corporate Actions

Dividend Rate

₹1.25

Ex-Dividend Date

24 Jul 2026

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive1 mixed4 general

Chembond Chemicals Shares Fall Below 21-Day SMA

Kalkine India, 16 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Chembond Chemicals Share Price and Stock Analysis

Kalkine India, 13 Oct

Dividend Investors: Don't Be Too Quick To Buy Chembond Chemicals Limited (NSE:CHEMBONDCH) For Its Upcoming Dividend

Simply Wall Street, 20 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Chembond Chemicals Clarifies Stock Price Movement as Market-Driven

scanx.trade, 09 Apr

Chembond Chemicals promoter Nirmal Shah buys 15,000 shares

scanx.trade, 25 Aug

Chembond Chemicals Share Price and Fundamental Analysis

Univest, 21 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingValuation · Risk

WeakGrowth

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 4 tripwires holding · see Key things to watch ↑