Fertilizers & Agrochemicals
Chambal Fertilisers and Chemicals Limited, together with its subsidiaries, produces and sells fertilizers primarily in India. It offers urea; and other agri-inputs, such as di-ammonium phosphate, murate of potash, single super phosphate, and pesticides, as well as NPK fertilizers, specialty fertilizers and micro nutrients, insecticides, fungicides, and herbicides under the Uttam brand. The company was incorporated in 1985 and is headquartered in New Delhi, India.
Summary of Chambal Fertilisers & Chemicals's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
The management of Chambal Fertilisers and Chemicals provided an optimistic outlook, emphasizing growth across core and new business verticals. Key highlights include:
Crop Protection & Specialty Nutrients: CPC & SN revenue grew 26% YoY in Q3, with plans to introduce advanced "Gen 1X" products and biological solutions (fungicides, nematicides) to address sustainability. A biologicals pipeline targeting Rs. 300-400 crore in sales is underway.
Strategic Collaborations: Partnered with TERI to establish the CFCL-TERI Centre of Excellence for sustainable agriculture, focusing on bio-based solutions. Exclusive global rights to products developed here over five years.
Capacity Expansion:
Diversification: Entering hybrid seeds (wheat, mustard, millet) by Kharif 2025, complementing agro-input offerings.
Operational Efficiency: Achieved 3% energy efficiency gains, driving cost savings and readiness for potential urea decontrol.
Farmer Engagement: Strengthened outreach via 2,500 farmer meetings, 3,500 demos, and soil testing, enhancing brand loyalty.
Financial Strength: Zero debt with ~Rs. 3,000 crore cash reserves. Exploring global phosphate supply chain investments to secure raw materials.
Outlook focuses on scaling high-margin segments (CPC, SN, seeds), leveraging partnerships, and capitalizing on infrastructure-driven TAN demand. Management remains confident in sustaining growth through operational excellence and strategic expansions.
Last updated: Feb 25
Question 1: What portion of the additional DAP subsidy was booked in Q3, and is the DAP trading business profitable?
Answer: Approximately 80-85% of the Rs. 3,500/ton DAP subsidy was booked. DAP trading is currently a zero-sum game with minimal profitability; Q3 sales were ~1 lakh tons, aimed at maintaining distribution channels.
Question 2: Explain IMACID's phosphoric acid expansion plans and associated costs.
Answer: IMACID's phosphoric acid capacity will expand from 500,000 to 700,000 tons, with a $173M investment. The project includes sulfuric acid plant upgrades and targets completion by 2027-28.
Question 3: What is the urea production outlook for Q4 FY25?
Answer: Q4 production will reduce by 1"“1.5 lakh tons due to Gadepan-III's annual shutdown. Net debt is zero with ~Rs. 3,000 crore cash reserves.
Question 4: What is the revenue split between Crop Protection Chemicals (CPC) and Specialty Nutrients (SN)?
Answer: CPC and SN revenues are split ~65:35 to 70:30, varying by quarter. CPC+SN revenue grew 26% YoY in Q3 (Rs. 255 crore) and 19% for 9M (Rs. 887 crore).
Question 5: How will Chambal address phosphate supply chain challenges?
Answer: The company is negotiating international investments to secure phosphate supply chains, prioritizing cost efficiency and global market integration.
Question 6: What are the demand and competition dynamics for TAN?
Answer: Domestic TAN demand is ~1 million tons, with imports of 200,000"“400,000 tons. Competitor expansions may cause oversupply, but Chambal's cost efficiency will aid competitiveness.
Question 7: What CAPEX was incurred in 9M FY25, and when will TAN contribute to earnings?
Answer: CAPEX was Rs. 357 crore (Rs. 250 crore for TAN). TAN's commercial production starts January 2026, with EBITDA contributions expected from FY27.
Question 8: How do energy efficiency gains impact EBITDA?
Answer: A 3% energy efficiency improvement and 125 tons/day incremental production boost EBITDA, though gains are shared with the government beyond regulated production limits.
Question 9: What growth strategies are in place for CPC and SN?
Answer: CPC+SN targets Rs. 1,750 crore gross revenue by FY27 (Rs. 1,750 crore gross vs. net ~20% lower). Growth drivers include new product launches (e.g., biologicals) and expanded distribution.
Question 10: How will capital be allocated post-TAN project?
Answer: Focus areas include global phosphate integration, hybrid seeds, and biologicals (targeting Rs. 300"“400 crore revenue). Inorganic growth in seeds and TERI partnerships will drive future expansion.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Profitability: Recent profitability of 9% is a good sign.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Size: Market Cap wise it is among the top 20% companies of india.
Balance Sheet: Strong Balance Sheet.
Growth: Poor revenue growth. Revenue grew at a disappointing -10.9% on a trailing 12-month basis.
Comprehensive comparison against sector averages
CHAMBLFERT metrics compared to Fertilizers
Category | CHAMBLFERT | Fertilizers |
---|---|---|
PE | 16.78 | 21.72 |
PS | 1.59 | 1.26 |
Growth | -10.9 % | -0.8 % |
CHAMBLFERT vs Fertilizers (2021 - 2025)
Analysis of Chambal Fertilisers & Chemicals's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
Own Manufactured Fertilisers | 74.0% | 3.6 kCr |
Complex Fertilisers | 20.8% | 1 kCr |
Crop Protection Chemicals and Speciality Nutrients | 5.2% | 254.9 Cr |
Total | 4.9 kCr |
Understand Chambal Fertilisers & Chemicals ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
The Hindustan Times Limited | 14.28% |
Zuari Industries Limited | 14.22% |
SIL Investments Limited | 8.14% |
Earthstone Holding (Two) Private Limited | 3.56% |
Chandra Shekhar Nopany (Shekhar Family Trust) | 3.37% |
HDFC Small Cap Fund and its Associate Funds | 2.43% |
Earthstone Investment & Finance Limited | 2.03% |
Yashovardhan Investment & Trading Co. Ltd. | 1.9% |
Ronson Traders Limited | 1.72% |
Uttam Commercial Ltd. | 1.64% |
Nippon Life India Trustee Ltd - A/c Nippon India Small Cap Fund and its Associate Funds | 1.06% |
Jyotsna Poddar | 1.06% |
Nilgiri Plantations Limited | 1.03% |
Manbhawani Investment Ltd. | 0.91% |
Premium Exchange and Finance Limited | 0.74% |
Shobhana Bhartia | 0.66% |
Manavta Holdings Ltd. | 0.58% |
Akshay Poddar | 0.56% |
Ganges Securities Limited | 0.56% |
Simon India Limited | 0.53% |
Distribution across major stakeholders
Distribution across major institutional holders
Valuation | |
---|---|
Market Cap | 27.68 kCr |
Price/Earnings (Trailing) | 17.13 |
Price/Sales (Trailing) | 1.62 |
EV/EBITDA | 10.22 |
Price/Free Cashflow | 7.12 |
MarketCap/EBT | 12.04 |
Fundamentals | |
---|---|
Revenue (TTM) | 17.06 kCr |
Rev. Growth (Yr) | 12.12% |
Rev. Growth (Qtr) | 13.49% |
Earnings (TTM) | 1.62 kCr |
Earnings Growth (Yr) | 16.33% |
Earnings Growth (Qtr) | -0.37% |
Profitability | |
---|---|
Operating Margin | 13.47% |
EBT Margin | 13.47% |
Return on Equity | 19.73% |
Return on Assets | 12.93% |
Free Cashflow Yield | 14.05% |
Investor Care | |
---|---|
Dividend Yield | 1.16% |
Dividend/Share (TTM) | 8 |
Shares Dilution (1Y) | 3.74% |
Diluted EPS (TTM) | 40.43 |
Financial Health | |
---|---|
Current Ratio | 1.71 |
Debt/Equity | 0.01 |
Debt/Cashflow | 1.79 |
Detailed comparison of Chambal Fertilisers & Chemicals against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
COROMANDEL | Coromandel InternationalFertilizers | 65.92 kCr | 23.33 kCr | +12.89% | +88.90% | 40.19 | 2.83 | -2.06% | -4.82% |
RCF | Rashtriya Chemicals & FertilizersFertilizers | 7.7 kCr | 17.23 kCr | +11.21% | -8.16% | 29.04 | 0.45 | -4.00% | -8.43% |
GSFC | Gujarat State Fertilizers & Chem.Fertilizers | 7.57 kCr | 9.89 kCr | +7.21% | -23.96% | 13.97 | 0.77 | -0.39% | -29.07% |
GNFC | Gujarat Narmada Valley Fert.Co.Commodity Chemicals | 7.28 kCr | 8.43 kCr | -0.25% | -31.17% | 14.1 | 0.86 | -1.64% | -26.60% |
NFL | National FertilizersFertilizers | 4.23 kCr | 20.71 kCr | +7.24% | -18.45% | 16.46 | 0.2 | -16.37% | +187.50% |