Chemplast Sanmar (CHEMPLASTS)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me start with what attracts me: the price of ₹243.85 is almost exactly the book value of ₹245.12. For a Graham investor, buying near book can give a margin of safety if the assets are real and earnings power exists. But in this case, the earnings power is missing. Chemplast Sanmar lost ₹119 crore in the latest quarter on sales of ₹835 crore. Annual profit growth collapsed by 144%, and sales fell 21%. The company earns a return on equity of -3.76% and a return on capital of just 1.83% — far below what I would demand for a commodity chemical business. With debt/equity at 0.97, the balance sheet is not deeply distressed, but leverage plus losses is a dangerous combination. There is no dividend to compensate while waiting, and the Piotroski F-score of 3/9 suggests weak operational health. Promoter holding at 54.99% is a positive, but even good ownership cannot overcome a business without pricing power. This is a cyclical commodity producer in a downcycle, not a wonderful franchise. I cannot say it is a bargain just because it trades near book. Book value is an accounting number; value comes from future cash earnings. Until I see stabilising sales, narrowing losses, and returns moving back toward a respectable cost of capital, this remains a risky turnaround speculation, not a Graham investment. The 52-week range of ₹170 to ₹460 shows how volatile this stock can be. I would keep it on the watchlist but not put my capital to work.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer