In November 2023, Chemplast Sanmar Ltd is one of the top Chemical companies that has been catching the eye of many investors. It has a history of making money and growing its business, making it an attractive prospect for those looking to invest. In this article, we’re going to explore what the future might hold for Chemplast Sanmar’s stock price.
We’ll look at the company’s past performance, market trends, and other important factors to get a better idea of where its stock might be headed in the months and years to come. So, let’s dive in and see what the future could have in store for this intriguing investment opportunity.
About Chemplast Sanmar
Chemplast Sanmar Ltd is a major player in the world of chemicals, known for producing a variety of non-specialty and specialty chemicals. The company’s focus on quality and innovation has made it a key manufacturer of Specialty Chemicals, serving industries such as fine chemicals, agro-chemicals, and pharmaceuticals. Their product range includes Specialty Paste PVC resin and Custom Manufactured Chemicals, alongside other essential chemicals like Chlorochemicals, Refrigerant gas, Caustic Soda, Hydrogen Peroxide, , and Industrial Salt.
In the fiscal year 2023, the company’s primary product segments are Suspension PVC (61%), Specialty Chemicals (22%), and Non-Specialty Chemicals (17%). They lead the market in South India for various products, and their offerings are used in industries ranging from water conveyancing and construction to leather cloth, mats, gloves, and more.
Chemplast Sanmar Ltd is on a path of growth with significant investments, totaling over Rs. 1,000 Crores, directed towards expanding their capacities in the Speciality Paste PVC and Custom Manufactured Chemicals Division. These expansion projects are expected to be completed in 2023-24, with a focus on enhancing their production capabilities and market presence.
The company operates manufacturing facilities in Mettur, Berigai, Vedaranyam in Tamil Nadu, and Karaikal in the Union Territory of Puducherry. Each facility is strategically chosen to produce specific chemicals, ensuring efficient operations and distribution.
Chemplast Sanmar Ltd has a dynamic history. It faced challenges during the global financial crisis of 2008-09 and was delisted in 2012. However, it made a remarkable comeback in 2021 with a market capitalization of 8553 crore, showcasing its resilience and commitment to success.
Q1 Fy2024 Key Points And Summary:
- Revenue in Q1 FY ’24: In the first quarter of the fiscal year 2024, the company earned a total revenue of Rs. 996 crores.
- Q1 FY ’24 EBITDA: During the same quarter, the company faced challenges in making a profit, reporting an EBITDA loss of Rs. 35 crores. This means they didn’t earn as much as they spent on operations.
- Debt Position (June ’24): As of June 2024, Chemplast Sanmar Ltd had a debt of about Rs. 27 crores. This is a manageable level of debt, and the company has enough money to fund its future growth plans.
- Cash Savings: The company has a good amount of money saved up to support its expansion plans. This keeps them financially stable and flexible for future growth.
- Working Capital: The amount of money the company needs to run its different business segments varies. More details on this can be discussed offline.
- Return on Capital (Custom Manufacturing): The custom manufacturing part of the business is doing well. It’s earning around 40% in returns on the money invested. This shows that this part of the business is making good profits and operating efficiently.
Chemplast Sanmar Share Price Target 2023 To 2030
Chemplast Sanmar Share Price Target 2023
| When | Maximum Price | Minimum Price |
| November 2023 | ₹463.66 | ₹428.78 |
| December 2023 | ₹469.95 | ₹413.59 |
- Maximum Price for the Year: The highest expected share price occurred in December 2023, reaching ₹509.95.
- Minimum Price for the Year: The lowest expected share price was in November 2023, at ₹448.78.
So, for the year 2023, the maximum share price for Chemplast Sanmar was ₹509.95, and the minimum share price was ₹448.78. This information provides an overview of the price range that investors and analysts can expect for the company’s shares during the year.
Chemplast Sanmar Share Price Target 2024
| When | Maximum Price | Minimum Price |
| January 2024 | ₹481.35 | ₹452.48 |
| February 2024 | ₹501.97 | ₹461.72 |
| March 2024 | ₹511.81 | ₹471.14 |
| April 2024 | ₹526.03 | ₹457.42 |
| May 2024 | ₹518.25 | ₹450.66 |
| June 2024 | ₹536.91 | ₹466.88 |
| July 2024 | ₹531.54 | ₹462.21 |
| August 2024 | ₹552.80 | ₹480.70 |
| September 2024 | ₹574.92 | ₹499.93 |
| October 2024 | ₹563.64 | ₹490.13 |
| November 2024 | ₹580.55 | ₹504.83 |
| December 2024 | ₹595.07 | ₹517.45 |
- Maximum Price for the Year: The highest expected share price occurred in December 2024, reaching ₹595.07.
- Minimum Price for the Year: The lowest expected share price was in January 2024, at ₹452.48.
So, for the year 2024, Chemplast Sanmar’s maximum share price was ₹595.07, and the minimum share price was ₹452.48.
Chemplast Sanmar Share Price Target 2025
| when | Maximum Price | Minimum Price |
| January 2025 | ₹606.97 | ₹466.90 |
| February 2025 | ₹622.53 | ₹478.87 |
| March 2025 | ₹646.81 | ₹497.55 |
| April 2025 | ₹634.13 | ₹487.79 |
| May 2025 | ₹615.66 | ₹473.58 |
| June 2025 | ₹643.36 | ₹494.89 |
| July 2025 | ₹630.75 | ₹485.19 |
| August 2025 | ₹650.26 | ₹500.20 |
| September 2025 | ₹673.01 | ₹517.70 |
| October 2025 | ₹690.51 | ₹531.16 |
| November 2025 | ₹707.78 | ₹544.44 |
| December 2025 | ₹725.47 | ₹558.05 |
- Maximum Price for the Year (December 2025): The year seems to end on a high note for Chemplast Sanmar holders, with the share price reaching a maximum of ₹725.47 in December. Investors might be pleased with this upward momentum.
- Minimum Price for the Year (January 2025): On the other hand, the year started with a lower share price of ₹466.90 in January. It’s interesting to note that the prices have steadily increased from this point.
| Year | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| 2026 | ₹761.74 | ₹533.22 |
| 2027 | ₹837.92 | ₹586.54 |
| 2028 | ₹1,173.09 | ₹586.54 |
| 2029 | ₹1,015.66 | ₹507.83 |
| 2030 | ₹1,320.36 | ₹924.25 |
- 2026: Max: ₹761.74, Min: ₹533.22. Positive performance, some fluctuation.
- 2027: Max: ₹837.92, Min: ₹586.54. Continued rise, stability.
- 2028: Max: ₹1,173.09, Min: ₹586.54. Significant increase, steady floor.
- 2029: Max: ₹1,015.66, Min: ₹507.83. Slightly lower max, stability.
- 2030: Max: ₹1,320.36, Min: ₹924.25. Strong performance, bullish sentiment.
Overall, this analysis suggests a positive long-term trend in the expected share prices of the company. There are instances of price fluctuations, but the general trajectory appears to be upward. The significant increase in share prices in 2028 and 2030 is particularly noteworthy and may reflect exceptional performance or favorable market conditions during those years. However, investors and analysts should continue to monitor these trends and factors influencing the stock’s performance.
Chemplast Sanmar Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
| Sales + (Crores Rs.) |
1,254 | 1,258 | 3,799 | 5,892 | 4,941 |
| Expenses + (Crores Rs.) |
969 | 1,011 | 3,171 | 4,695 | 4,473 |
| Operating Profit (Crores Rs.) |
286 | 247 | 628 | 1,197 | 468 |
| OPM % | 23% | 20% | 17% | 20% | 9% |
| Other Income + (Crores Rs.) |
12 | 8 | 484 | 57 | -1 |
| Interest (Crores Rs.) |
48 | 95 | 433 | 322 | 154 |
| Depreciation (Crores Rs.) |
56 | 87 | 131 | 137 | 142 |
| Profit before tax (Crores Rs.) |
193 | 72 | 547 | 796 | 172 |
| Tax % | 39% | 36% | 25% | 18% | 11% |
| Net Profit + (Crores Rs.) |
118 | 46 | 410 | 649 | 152 |
| EPS in Rs | 14.81 | 6.88 | 30.59 | 41.03 | 9.64 |
| Dividend Payout % | 0% | 0% | 0% | 0% | 0% |
In a financial snapshot spanning from March 2019 to March 2023, we observe notable shifts in a company’s performance, marked by fluctuating profitability and expense management.
- Sales: Revenue increased from ₹1,254 crore in March 2019 to ₹4,941 crore in March 2023.
- Expenses: Costs grew with revenue but were well-managed, though expenses-to-sales ratio increased to 90% in March 2023.
- Operating Profit Margin: Dropped from 23% in March 2019 to 9% in March 2023 due to increased expenses.
- Other Income: Varied, reaching ₹484 crore in March 2021 but becoming negative (-1 crore) in March 2023.
- Profit before Tax: Grew to ₹796 crore in March 2022 but fell to ₹172 crore in March 2023.
- Tax Rate: Decreased from 39% in March 2019 to 11% in March 2023.
- Net Profit: Rose to ₹649 crore in March 2022 but declined to ₹152 crore in March 2023.
- Earnings per Share (EPS): Grew from ₹14.81 in March 2019 to ₹41.03 in March 2022 but fell to ₹9.64 in March 2023.
- Dividend Payout: No dividends were distributed during this period.
- In summary, revenue increased significantly, but maintaining profitability became challenging. Expenses and declining operating profit margins were key concerns, while tax management improved. The company did not distribute dividends during this period.
FAQs
What Is the Current Market Cap Value of Chemplast Sanmar Ltd?
The current market cap value of Chemplast Sanmar Ltd is ₹7,000 crore.
What is the Current Share Price of Chemplast Sanmar Ltd?
The current share price of Chemplast Sanmar Ltd as of November 26, 2023, stands at ₹445.
What Is the Trend in Return on Equity (ROE) for Chemplast Sanmar Ltd?
The Return on Equity (ROE) for Chemplast Sanmar Ltd shows stability at 18% over the last 3 years, with a recent decrease to 12%. The current ROE is 11.9%. Data for the past 10 and 5 years is unavailable, but these trends indicate shifts in the company’s financial performance and suggest the need for closer scrutiny of its future prospects.
What Is the Current Stock Price-to-Earnings (P/E) Ratio?
The current Stock P/E ratio stands at 199.
Should One Invest in Chemplast Sanmar?
When considering whether to invest in Chemplast Sanmar, it’s important for potential investors to take a close look at both the company’s strengths and areas of concern. On the bright side, the company has been consistently profitable and has seen growth in its sales and profits over the last few years. Additionally, its manageable level of debt is a good sign, indicating lower financial risk.
However, there are some cautionary points to consider. The first thing: is the PE ratio. It is close to 199 and is one of the highest in the industry.
Chemplast Sanmar’s decision not to pay dividends might not be attractive to investors looking for regular income. The low-interest coverage ratio raises questions about whether the company can meet its interest payments with its current earnings. The remarkably low tax rate may also need further examination, and the significant other income in earnings may not be sustainable.
Moreover, it’s worth noting that the Chemplast Sanmar stock’s high Price-to-Earnings (P/E) ratio and Return on Capital Employed (ROCE) should be assessed in comparison to industry and sector standards. Additionally, the Price-to-Book Value (CMP / BV) ratio can help gauge its valuation.
In conclusion, the choice to invest in Chemplast Sanmar should align with your personal investment goals, risk tolerance, and portfolio strategy.
