Chemcon Special. (CHEMCON)
CyclicalFairStock Score: 22/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹191.14 |
| Market Cap | ₹700.16 Cr |
| P/E Ratio | 24.89 |
| ROCE | 7.01% |
| ROE | 4.34% |
| Dividend Yield | 6.8% |
| Profit Growth | 71.6% |
| Debt/Equity | 0.11 |
| Sales Growth | 16.17% |
| Promoter Holding | 74.47% |
| 52-Week Range | ₹125 — ₹295 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹131.95 |
Strengths
- Zero debt provides a strong balance sheet cushion
- Promoter holding of 74.47% keeps management aligned with shareholders
- P/B of 1.21 offers some asset support near book value of ₹134.60
- Sales still grew 5.41%, showing demand resilience
- Latest quarter remained profitable at ₹5 Cr net profit
Concerns
- Profit declined 42.22% with ROE just 4.34% and ROCE 7.01%
- P/E of 28.45 is expensive for falling earnings; PEG of 5.26 highlights overvaluation
- Piotroski F-score of 4/9 signals weak fundamentals
- No dividend means no income while waiting for recovery
AI Analysis
Let me start with the obvious: a 42% drop in profit while sales rise 5% tells me this is not a business with pricing power. In my world, you want a company that earns high returns on capital. Chemcon's ROE is 4.34% and ROCE is 7.01% – I could get that in a fixed deposit without worrying about quarterly slides. The balance sheet is clean, with zero debt, and promoters own 74.47%, so skin in the game is not the issue. But a clean balance sheet only helps if management can deploy capital profitably. At ₹162.75, the market caps the company at ₹603 Cr, which is 28.45 times trailing earnings. That is not cheap when earnings are falling by 42%. The book value is ₹134.60, so the P/B of 1.21 offers some asset support, yet the return on that book is poor. The Piotroski score of 4 out of 9 and the FairStock score of 9/100 both warn me to be cautious. There is no dividend, so my return depends entirely on future business improvement. This smells like a cyclical downturn or a company in need of a genuine turnaround. I don't buy stories; I need evidence of margin recovery and higher cash flows. The latest quarter's ₹5 Cr profit at least shows it is still profitable, but I need to see that trend sustained. Until then, this goes on my watchlist, not my wallet.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer