Chembond Chemicals Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Chembond Chemicals Ltd trades at ₹226, in a confirmed uptrend and 10 weeks into that stage. That is +24.1% against its own 200-day average. It sits at 72% of a 52-week range of ₹173 to ₹247. On relative strength it has no relative-strength read yet.

Today the stock is in a confirmed uptrend — week 10 of stage 2, confirmed. At ₹226 it trades +24.1% versus its 200-day average and sits at 72% of its 52-week range (₹173–₹247).

Against the market, two honest reads. Cumulative: over the last 2 months the stock moved +21% while the NIFTY 500 moved +4% — ahead of the index over the full window. Recent form: no trailing-13-week read yet — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Chembond Chemicals Ltd trades at 15.9× P/E, mid-range by its own standards (49th percentile). Its long-run median P/E is 16.1×, measured across 0.2 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 15.9× is mid-range by its own standards (49th percentile), against a long-run median of 16.1× measured over 0.2 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

A quarterly PEG curve, which only the second data source carries, is not drawn on this page: its two data sources do not share enough overlapping reported history to be compared. A figure nobody could check is not used to price growth — the gap is a decision, not missing data.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Chembond Chemicals Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 5 quarters across 1 curve, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

4-Factor Sector Score

60.0/100 — rank 2 of 5 in Chemicals - Speciality · 62% evidence confidence

Chembond Chemicals Ltd scores 60.0 out of 100 against the 5 companies it is compared with in Chemicals - Speciality, ranking 2. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 22.7 + 14.8 + 10 + 12.5 = 60. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Chembond Chemicals Ltd reported ₹86.5 Cr of revenue in the Jun 26 quarter, +32.3% year on year. That is the 3rd straight quarter of year-on-year growth. Over 4 years it has compounded at −1.7% a year. The last full year, FY26, came in at ₹326 Cr. The last four reported quarters add to ₹347 Cr.

FY26 revenue came in at ₹326 Cr (+11.6% on the year), capping 4 years at −1.7% compound. The latest quarter (Jun 26) printed ₹86.5 Cr, +32.3% year on year — the 3rd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +18.7% growth against the decade's −1.7% — the current year is running faster than its own long-run rate.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Chembond Chemicals Ltd's operating margin is 13.1% in the Jun 26 quarter, +0.2 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 5 fiscal years the operating margin has ranged 4.9% to 15.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 13.1%, +0.2 pp against the same quarter a year ago. Across 5 fiscal years the operating margin has ranged 4.9%–15.0%, and FY26's 15.0% is the top of that band — a record year.

Why the margin moved: operating margin went +0.2 pp year on year while gross margin went −9.8 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Chembond Chemicals Ltd earned ₹9.6 Cr of net profit in the Jun 26 quarter, +52.3% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹35.0 Cr. The 4-year compound rate is 25.7%. That is 11.0% of the quarter's revenue. The same quarter a year earlier earned ₹6.3 Cr.

Jun 26 profit was ₹9.6 Cr, +52.3% year on year — the 2nd consecutive quarter of growth. On the full year, FY26 printed ₹35.0 Cr (+12.9%), and the 4-year compound rate is 25.7%.

Why profit moved: revenue contributed +32.3% and the margin +0.2 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +22.0% vs revenue +18.7%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years −40% of Chembond Chemicals Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹8.0 Cr of operating cash against ₹35.0 Cr of profit. After ₹7.0 Cr of capital spending, ₹1.0 Cr was left as free cash.

FY26: operating cash of ₹8.0 Cr against reported profit of ₹35.0 Cr, leaving free cash of ₹1.0 Cr after ₹7.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is −40% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at −40%: the cash cycle stretched 25 days between FY22 and FY26 — more of each rupee of profit waits inside the cycle before arriving. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: conversion is below par and the cash cycle has stretched 25 days — the next section's job is to find where the cash is stuck.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Chembond Chemicals Ltd's cash conversion cycle runs 109 days in FY26, up from 84 days in FY22. Capital spending ran ₹−93.0 Cr over the last 3 years. At FY26 sales of ₹326 Cr each day of that cycle holds about ₹0.9 Cr, so roughly ₹97.0 Cr sits inside the business at any moment.

FY26: debtors at 128 days, inventory at 57 days — roughly 1.9 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 109 days, looser than FY22's 84.

The full loop: cash goes out to suppliers and production on day 0; stock waits 57 days to sell; customers pay about 128 days after that; and suppliers themselves are paid at 75 days — netting out to the 109-day cycle.

In money terms: at FY26 sales of ₹326 Cr, each day of the cycle holds about ₹0.9 Cr — so the 109-day loop keeps roughly ₹97.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹−93.0 Cr over the last 3 fiscal years against ₹13.0 Cr of depreciation — spending at or below maintenance level. Capital work-in-progress stands at ₹0.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.⚠ unverified

Chembond Chemicals Ltd earns a ROCE of 24% in FY26. That is up from a trough of 11% in FY23. Return on invested capital clears the cost of that capital by +12.7 percentage points, so growth here adds value rather than only size. The wiring behind it is 10.7% net margin on 1.29× asset turns.

FY26 ROCE is 24%, recovered from a FY23 trough of 11% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 10.7% net margin × 1.29× asset turns × 1.22× balance-sheet leverage ≈ 16.8% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 24.7% − 12.0% = a +12.7 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.⚠ unverified

Chembond Chemicals Ltd carries total debt of ₹7.0 Cr against shareholder equity of ₹363 Cr as of Jun 24, a debt-to-equity of 0.02 — effectively unlevered. On the annual view that ratio went from 0.01 in FY22 to 0.02 in FY23. The returns elsewhere on this page are therefore earned rather than borrowed.

Jun 24: total debt of ₹7.0 Cr against shareholder equity of ₹363 Cr — a debt-to-equity of 0.02. On the annual view, debt-to-equity went from 0.01 (FY22) to 0.02 (FY23). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 1.7 points of Chembond Chemicals Ltd over 4 quarters, the biggest move on the register. That takes domestic institutions to 2.6% of the company. Promoters moved +0.3 points over the same window, to 68.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +1.7 points over 4 quarters to 2.6%; Promoters: +0.3 points over 4 quarters to 68.0%; Foreign institutions: +0.0 points over 4 quarters to 0.7%.

Why the register moved: domestic institutions drove it (+1.7 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Chembond Chemicals Ltd: the Z-score reads 9.28. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits well clear of distress. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 9.28 sits well clear of the distress zone — the balance sheet is not the risk here.

The safety line in one sentence: the Z-score reads 9.28.

Frequently asked questions