WEBSITE BSE:537326 NSE: CHEMTECH Inc. Year: 1997 Industry: Engineering - Industrial Equipments My Bucket: Add Stock
Last updated: 10:42
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1. Business Overview
Chemtech Industrial Valves Ltd. is an Indian manufacturer of a wide range of industrial valves. The company designs, develops, and produces various types of valves including Gate, Globe, Check, Ball, Butterfly, Plug, and specialized valves. These products are crucial components for controlling flow and pressure in various industrial processes. Chemtech primarily serves critical sectors such as oil & gas, petrochemicals, power generation, chemicals, fertilizers, steel, paper, sugar, and water treatment plants. The company generates revenue by selling these valves directly to industrial clients, often as part of new project installations (CAPEX) or for maintenance, repair, and overhaul (MRO) needs.
2. Key Segments / Revenue Mix
Chemtech Industrial Valves Ltd. does not typically disclose its revenue breakdown by specific segments with percentage contributions. However, its product portfolio can be broadly categorized by valve type (e.g., Gate, Globe, Check, Ball, Butterfly valves) and by material of construction (e.g., cast iron, cast steel, forged steel, stainless steel, alloy steel). The company serves diverse end-user industries, indicating a relatively diversified revenue base across industrial applications rather than concentration in a single sector.
3. Industry & Positioning
The industrial valves industry in India is competitive, characterized by the presence of numerous domestic manufacturers and international players. It is driven by infrastructure development, industrial growth, and capital expenditure across manufacturing sectors. Chemtech positions itself as a quality-focused manufacturer, emphasizing product reliability, adherence to international standards (e.g., API, ISO), and the ability to customize solutions. The company likely operates as a mid-sized player within the Indian market, competing on product quality, certifications, competitive pricing, and established customer relationships, rather than being a dominant market leader.
4. Competitive Advantage (Moat)
Chemtech's competitive advantages likely stem from:
Product Reliability & Certifications: In industrial applications, valve failure can be catastrophic and costly. Adherence to stringent quality standards and relevant industry certifications (e.g., API, ISO) builds trust and acts as a barrier to entry for new competitors.
Established Customer Relationships: Long-term relationships with industrial clients, built on consistent product performance and reliable service, can lead to repeat orders and preferred supplier status.
Specialized Engineering & Customization: The ability to engineer and customize valves for specific, demanding applications can differentiate the company from commodity producers.
Manufacturing Expertise & Scale (relative to smaller players): Efficient manufacturing processes and a certain level of production scale allow for cost-effectiveness and timely delivery, crucial in project-driven environments.
5. Growth Drivers
Indian Industrial Growth & Infrastructure Development: Government initiatives like "Make in India," and investments in sectors like oil & gas, power, chemicals, water treatment, and infrastructure projects will drive demand for industrial valves.
Capital Expenditure Cycle Revival: A resurgence in private sector capital expenditure in manufacturing and process industries will lead to increased demand for new industrial equipment, including valves.
Modernization & Replacement Demand: Aging industrial infrastructure in various sectors necessitates the replacement and upgrade of existing valves, providing a consistent revenue stream.
Diversification into New Applications/Markets: Expanding product offerings for emerging industrial needs or exploring export opportunities can contribute to growth.
6. Risks
Economic Downturn: Demand for industrial valves is cyclical and highly sensitive to economic slowdowns, industrial output, and capital expenditure decisions by client industries.
Raw Material Price Volatility: Fluctuations in the prices of key raw materials like steel, alloys, and other metals can significantly impact production costs and profit margins.
Intense Competition: The presence of numerous domestic and international players can lead to pricing pressures and challenges in securing orders.
Project Delays/Cancellations: Large industrial projects, which often require significant valve orders, are subject to delays or cancellations, impacting the company's order book and revenue realization.
Technological Obsolescence: Continuous innovation in valve design and materials requires ongoing R&D investment to remain competitive.
7. Management & Ownership
Chemtech Industrial Valves Ltd. is typically understood to be a promoter-driven company, common among many mid-sized Indian manufacturers. The management team likely comprises individuals with significant experience in the industrial manufacturing sector, particularly in valve engineering and production. The ownership structure generally involves the promoter family holding a substantial stake, aligning their long-term interests with the company's performance.
8. Outlook
Chemtech Industrial Valves Ltd. operates in a fundamental industry driven by India's industrialization and infrastructure growth. The ongoing thrust on domestic manufacturing, capacity expansion across core sectors, and the need for modernization provide a favorable demand environment for industrial valves. The company's focus on product quality and certifications should help it capitalize on these opportunities. However, its growth trajectory will be subject to the cyclical nature of industrial capital expenditure, intense competition from both domestic and international players, and the volatility of raw material prices. Sustained economic growth and effective execution in securing and delivering on large projects will be crucial for its performance.
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Market Cap ₹150 Cr.
Stock P/E 21.3
P/B 1.4
Current Price ₹81.2
Book Value ₹ 59.4
Face Value 10
52W High ₹149.9
Dividend Yield 0%
52W Low ₹ 53.7
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 5 | 11 | 10 | 11 | 8 | 8 | 12 | 10 | 5 | 5 |
| Other Income | 0 | 0 | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 1 |
| Total Income | 5 | 11 | 11 | 11 | 9 | 9 | 14 | 11 | 6 | 7 |
| Total Expenditure | 4 | 9 | 9 | 8 | 6 | 7 | 11 | 6 | 4 | 6 |
| Operating Profit | 1 | 2 | 2 | 3 | 2 | 2 | 3 | 5 | 2 | 1 |
| Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 0 | 1 | 1 | 3 | 2 | 2 | 2 | 4 | 2 | 1 |
| Provision for Tax | -0 | -0 | -0 | 1 | 0 | 1 | 1 | 1 | 1 | 1 |
| Profit After Tax | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 3 | 1 | 0 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 3 | 1 | 0 |
| Adjusted Earnings Per Share | 0.5 | 0.9 | 0.8 | 1.5 | 1.1 | 0.9 | 1 | 1.7 | 0.7 | 0.1 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 33 | 39 | 47 | 48 | 17 | 20 | 14 | 11 | 20 | 31 | 40 | 32 |
| Other Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 3 | 4 |
| Total Income | 34 | 39 | 47 | 48 | 17 | 20 | 14 | 12 | 21 | 32 | 43 | 38 |
| Total Expenditure | 34 | 39 | 44 | 45 | 14 | 17 | 11 | 10 | 17 | 26 | 32 | 27 |
| Operating Profit | -0 | 1 | 3 | 3 | 3 | 3 | 3 | 2 | 5 | 6 | 11 | 11 |
| Interest | 2 | 2 | 2 | 2 | 1 | 1 | 1 | 1 | 1 | 1 | 0 | 0 |
| Depreciation | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 0 |
| Exceptional Income / Expenses | -0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | -4 | -3 | 0 | 0 | 0 | 1 | 1 | -1 | 3 | 4 | 9 | 9 |
| Provision for Tax | 0 | 0 | 0 | 0 | -0 | -0 | -0 | -0 | -0 | 0 | 2 | 4 |
| Profit After Tax | -4 | -3 | 0 | 0 | 0 | 1 | 1 | -1 | 3 | 4 | 7 | 6 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | -4 | -3 | 0 | 0 | 0 | 1 | 1 | -1 | 3 | 4 | 7 | 6 |
| Adjusted Earnings Per Share | -3.3 | -2.5 | 0.1 | 0.3 | 0.2 | 0.8 | 0.6 | -0.5 | 2.4 | 3.6 | 3.9 | 3.5 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 29% | 54% | 15% | 2% |
| Operating Profit CAGR | 83% | 77% | 30% | 0% |
| PAT CAGR | 75% | 0% | 48% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -41% | 27% | 51% | 15% |
| ROE Average | 12% | 19% | 12% | 1% |
| ROCE Average | 14% | 16% | 13% | 9% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 10 | 7 | 7 | 8 | 8 | 9 | 10 | 9 | 12 | 35 | 96 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 9 | 10 | 10 | 9 | 9 | 8 | 11 | 10 | 9 | 4 | 0 |
| Other Non-Current Liabilities | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Total Current Liabilities | 8 | 31 | 16 | 7 | 7 | 6 | 6 | 7 | 7 | 12 | 8 |
| Total Liabilities | 28 | 49 | 34 | 25 | 25 | 24 | 27 | 27 | 28 | 51 | 104 |
| Fixed Assets | 18 | 17 | 16 | 15 | 14 | 13 | 12 | 12 | 12 | 11 | 13 |
| Other Non-Current Assets | 0 | 0 | 3 | 2 | 3 | 2 | 3 | 3 | 2 | 4 | 1 |
| Total Current Assets | 10 | 32 | 16 | 8 | 7 | 9 | 12 | 12 | 14 | 36 | 90 |
| Total Assets | 28 | 49 | 34 | 25 | 25 | 24 | 27 | 27 | 28 | 51 | 104 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 7 | 2 | 2 | 2 | 1 | 0 | 1 | 2 | 3 | 2 | 17 |
| Cash Flow from Operating Activities | 2 | 0 | 3 | 4 | 2 | 2 | 1 | 2 | 2 | 4 | -1 |
| Cash Flow from Investing Activities | -3 | 0 | 0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | 0 |
| Cash Flow from Financing Activities | -3 | -0 | -3 | -6 | -3 | -1 | -1 | -0 | -2 | 12 | 49 |
| Net Cash Inflow / Outflow | -4 | -0 | 0 | -2 | -0 | 1 | 0 | 1 | -1 | 15 | 47 |
| Closing Cash & Cash Equivalent | 2 | 2 | 2 | 1 | 0 | 1 | 2 | 3 | 2 | 17 | 65 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | -3.29 | -2.45 | 0.1 | 0.28 | 0.2 | 0.85 | 0.6 | -0.49 | 2.43 | 3.62 | 3.91 |
| CEPS(Rs) | -2.17 | -1.38 | 1.12 | 1.23 | 1.13 | 1.73 | 1.45 | 0.39 | 3.28 | 4.44 | 4.44 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 8.31 | 5.87 | 6.11 | 6.42 | 6.66 | 7.54 | 8.2 | 7.77 | 10.22 | 26.22 | 51.18 |
| Core EBITDA Margin(%) | -2.22 | 1.36 | 6.75 | 6.76 | 13.97 | 15.52 | 19.73 | 13.82 | 18.99 | 18.34 | 19.82 |
| EBIT Margin(%) | -4.81 | -1.38 | 4.81 | 4.81 | 8.83 | 11.57 | 14.47 | 6.6 | 19.15 | 16.57 | 24.04 |
| Pre Tax Margin(%) | -10.59 | -6.74 | 0.69 | 0.87 | 0.04 | 4.82 | 4.72 | -5.25 | 13.6 | 13.29 | 23.09 |
| PAT Margin (%) | -11.15 | -7.05 | 0.24 | 0.67 | 1.4 | 4.97 | 4.91 | -4.88 | 13.66 | 13.24 | 17.52 |
| Cash Profit Margin (%) | -7.36 | -3.98 | 2.67 | 2.92 | 7.76 | 10.14 | 12.01 | 3.92 | 18.45 | 16.25 | 19.89 |
| ROA(%) | -11.91 | -7.27 | 0.28 | 1.09 | 0.94 | 3.97 | 2.67 | -2.09 | 10.12 | 10.47 | 9.04 |
| ROE(%) | -33.11 | -34.56 | 1.68 | 4.46 | 3.1 | 11.91 | 7.56 | -6.11 | 27 | 19.85 | 11.51 |
| ROCE(%) | -6.09 | -2.32 | 10.07 | 10.95 | 7.64 | 11.71 | 9.74 | 3.58 | 18.13 | 16.83 | 14.25 |
| Receivable days | 60.58 | 141.92 | 141.22 | 56.07 | 86.87 | 54.46 | 100.3 | 121.87 | 79.32 | 71.37 | 78.54 |
| Inventory Days | 37.28 | 27.07 | 19.89 | 17.32 | 59.86 | 69.64 | 89.98 | 97.69 | 54.38 | 43.4 | 33.54 |
| Payable days | 38.97 | 138.45 | 152.01 | 46.63 | 84.27 | 87.49 | 122.17 | 203.55 | 126.83 | 87.17 | 72.29 |
| PER(x) | 0 | 0 | 153.51 | 54.52 | 41.89 | 10.64 | 11.98 | 0 | 6.63 | 33.48 | 27.53 |
| Price/Book(x) | 0 | 3.85 | 2.53 | 2.37 | 1.28 | 1.19 | 0.87 | 1.96 | 1.58 | 4.62 | 2.1 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.72 | 1.03 | 0.66 | 0.61 | 1.23 | 1.03 | 1.35 | 2.3 | 1.33 | 4.13 | 3.2 |
| EV/Core EBITDA(x) | -86.21 | 59.79 | 8.92 | 8.54 | 8.1 | 6.17 | 6.26 | 14.93 | 5.54 | 21.11 | 12.14 |
| Net Sales Growth(%) | 10.48 | 16.71 | 20.06 | 2.45 | -65.31 | 17.32 | -28.84 | -17.41 | 77.66 | 53.67 | 27.6 |
| EBIT Growth(%) | -294.43 | 66.19 | 518.89 | 0.44 | -36.55 | 53.74 | -11.05 | -62.3 | 415.17 | 32.96 | 85.11 |
| PAT Growth(%) | -127.16 | 25.54 | 104.11 | 177.55 | -27.46 | 316.72 | -29.59 | -182 | 597.44 | 48.96 | 68.88 |
| EPS Growth(%) | -127.16 | 25.54 | 104.11 | 177.55 | -27.46 | 316.76 | -29.6 | -181.99 | 597.48 | 48.96 | 8.15 |
| Debt/Equity(x) | 1.55 | 2.43 | 2.24 | 1.66 | 1.47 | 1.28 | 1.29 | 1.33 | 0.9 | 0.15 | 0 |
| Current Ratio(x) | 1.15 | 1.05 | 1 | 1.2 | 1.05 | 1.52 | 2.13 | 1.86 | 2.2 | 3.15 | 11.57 |
| Quick Ratio(x) | 0.79 | 0.95 | 0.85 | 0.86 | 0.6 | 0.8 | 1.66 | 1.32 | 1.81 | 2.72 | 11.26 |
| Interest Cover(x) | -0.83 | -0.26 | 1.17 | 1.22 | 1.01 | 1.71 | 1.48 | 0.56 | 3.45 | 5.05 | 25.29 |
| Total Debt/Mcap(x) | 0 | 0.63 | 0.88 | 0.7 | 1.15 | 1.07 | 1.49 | 0.68 | 0.57 | 0.03 | 0 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 60.72 | 47.65 | 47.65 | 47.65 | 41.18 | 38.89 | 38.89 | 38.89 | 39.03 | 39.03 |
| FII | 0 | 0 | 0 | 0.04 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 1.97 | 1.86 | 1.86 | 1.91 | 1.91 | 1.67 |
| Public | 39.28 | 52.35 | 52.35 | 52.3 | 56.85 | 59.26 | 59.26 | 59.2 | 59.06 | 59.31 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Public | 0.45 | 0.77 | 0.77 | 0.77 | 0.96 | 1.06 | 1.06 | 1.06 | 1.06 | 1.06 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.15 | 1.46 | 1.46 | 1.46 | 1.69 | 1.79 | 1.79 | 1.79 | 1.79 | 1.79 |
* The pros and cons are machine generated.
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