Should I buy Chambal Fertilisers stock in 2025?

What is Chambal Fertilisers?

How much is Chambal Fertilisers stock?

The price of Chambal Fertilisers stock is falling this week. Currently trading at ₹621.75, the stock has declined by ₹10.35 or 1.64% in the last 24 hours, with a sharper weekly drop of 10.40%.

A beta of 1.49 indicates higher volatility compared to the broader market.

Investors should be aware of the recent pullback, as the current volatility may present both risks and opportunities in the Indian equity landscape.

Our full analysis on Chambal Fertilisers stock

After conducting a comprehensive review of Chambal Fertilisers and Chemicals Ltd’s latest financial results, coupled with a systematic evaluation of the stock’s performance over the past three years, our proprietary analysis—integrating technical, fundamental, and comparative market data—highlights several compelling dynamics at play. The blending of robust financial indicators, technical signals, and evolving sectoral context uniquely positions Chambal Fertilisers as a stock worth fresh consideration by discerning market participants. So, why might Chambal Fertilisers stock once again become a strategic entry point into India’s fertilizer and agri-inputs sector in 2025?

Recent Performance and Market Context

Over the past year, Chambal Fertilisers has demonstrated remarkable share price strength, rising 55.15% and outpacing both sectoral peers and broader Indian indices. Despite a recent short-term dip—marked by a 1-week decline of 10.40% and an intraday change of -1.64%—the stock remains up by a striking 33.91% over six months. This pattern suggests strong underlying demand, periodic profit-booking, and a healthy rotation in the shareholder base—a combination frequently seen in stocks transitioning to the next leg of secular outperformance.

• A 34.7% YoY surge in net profit for Q4 FY25, defying a modest revenue drop.
• Healthy improvement in operational margins, with quarterly EBITDA margin inching up to 6.7% from 6.3%.
• Successful completion of major debt reduction initiatives, positioning the company’s balance sheet for greater agility and growth.
• The fertilizer sector itself continues to benefit from government support and subsidy flows, ongoing mechanisation and precision agriculture trends, and robust underlying demand driven by India’s large, resilient agricultural base.

This favorable context, combined with Chambal's operational advances, has established a platform for further growth and positions the stock as one to watch closely as the sector’s next cycle develops.

Technical Analysis

A close examination of Chambal Fertilisers’ current technical posture reveals nuanced, potentially opportunistic entry points:

• Relative Strength Index (RSI) has eased to 37.1, moving toward oversold territory—a region where significant medium-term recoveries often originate.
• MACD remains above the centerline (0.6), indicating a bullish undertone, albeit with short-term consolidation as the price sits below the signal line.
• Money Flow Index (MFI) at 36.6 likewise suggests the stock has experienced recent selling pressure, but is not yet in oversold extremes, providing scope for a technical rebound.
• The share price is currently below its 50-day Simple Moving Average (SMA) but above the 200-day SMA (₹537.7)—a classic setup for medium-term buyers seeking strong names that have corrected but retained their trend integrity.

Crucially, major support levels are clustered around ₹616–₹603, with immediate resistance at ₹629–₹643. The clustering of volume and price near support, combined with consolidation after a powerful up-move, has historically been a precursor to renewed accumulation phases.

For traders and longer-term allocators alike, this mix of short-term technical softness and medium/longer-term structural resilience signals a moment where calculated entries can align with favorable risk-reward.

Fundamental Analysis

While Chambal’s topline posted a rare contraction in Q4, the business’s annual fundamentals remain robust and, importantly, trending in a shareholder-friendly direction:

• Annual Net Profit for FY25 soared to ₹1,649 crore (annual EPS: ₹41.17), confirming sustained earnings power and management's operational discipline.
• Consistent Dividend with a payout ratio of 24%, and a yield of 1.21%, offers a meaningful cushion for investors seeking total return in addition to capital appreciation.
• Return on Capital Employed (ROCE) stands at a notably strong 27.9%, underscoring world-class capital efficiency and sound stewardship over shareholder funds.
• With a P/E of 15.1, the stock offers an attractive balance between growth and reasonable valuation, especially against a backdrop of sectoral tailwinds and near debt-free status.
• The company’s book value of ₹218 per share also signals ample balance sheet solidity for future reinvestment or additional cash return initiatives.

Chambal’s relentless focus on deleveraging has de-risked the business, making it less vulnerable to interest rate spikes or subsidy delays, while its planned commissioning of a new Technical Ammonium Nitrate (TAN) plant in early 2026 augurs well for both diversification and bottom-line accretion.

In sum, the fundamentals not only remain intact but are arguably strengthening, offering a rare synthesis of value and growth—a highly sought-after combination for investors in the current environment.

Volume and Liquidity

One of the persistent strengths of Chambal Fertilisers as an investment case is its superior liquidity and market confidence:

• Average Daily Volume over the past 30 days stands at an impressive 4.15 million shares, ensuring that both institutional and retail participants can transact efficiently.
• Delivery volume percentages (51.48% daily, 44.24% weekly) indicate a healthy degree of committed, longer-term ownership rather than pure speculative churn.
• The stock’s inclusion in major indices (BSE 500, Nifty 500, Nifty Smallcap 100) further enhances liquidity, which is especially valuable during broader market volatility.

Such volume dynamics provide fertile ground for dynamic repricing, especially as positive catalysts emerge or technical reversals play out.

Catalysts and Positive Outlook

Chambal Fertilisers is on the cusp of several potent catalysts that could re-ignite its upward trajectory:

• Commissioning of the TAN Plant (January 2026) should drive product diversification, open new market avenues (including mining and explosives), and boost margin resilience.
• Ongoing moderation in global input prices, coupled with stable government subsidies, positions the company to further strengthen profitability in coming quarters.
• India's robust agri-sector, policy push for food security, and accelerating adoption of high-efficiency agri-inputs keep end-market demand buoyant.
• Strengthened governance with a new, dynamic CFO appointed in May 2025 and a Managing Director recently taking charge, ensuring fresh strategic impetus.
• Ongoing ESG initiatives, supply chain optimisation, and digital transformation may further differentiate Chambal as a modern, sustainable industry leader.

Each of these dimensions not only support the company’s outlook but also provide a steady drumbeat of newsflow and potential revaluation triggers for the share price.

Investment Strategies

Given the alignment of technical, fundamental, and structural variables, Chambal Fertilisers stock appears well positioned for diverse investment strategies:

• Short-term
• Current proximity to technical supports (₹616–₹603) offers attractive risk-managed entry points for traders seeking a reversal from oversold conditions.
• A successful retest and rebound from these levels can set up tactical trading opportunities into resistance at ₹629–₹643.
• Medium-term
• Investors looking at a 6–12 month horizon may benefit from potential re-rating as the company's margin, ROCE, and net profit trajectory become more widely recognised, and as institutional participation continues to build.
• Anticipation of TAN plant progress and operational updates can provide periodic upside catalysts.
• Long-term
• The de-risked balance sheet, expanding product portfolio, and improving capital allocation profile create a foundation for compounding value.
• Consistent dividend income and strong stewardship add defensiveness, balancing India’s ongoing macro agri-sector drivers.

For all horizons, entries near current technical support, ahead of major capex commissioning, and before valuation multiples fully rerate, seem particularly well timed.

Is it the Right Time to Buy Chambal Fertilisers?

Bringing the analysis together, several key strengths stand out:

• Strong profit growth and capital efficiency, despite temporary revenue headwinds.
• Attractive valuation metrics, with P/E well below the high-growth segment average.
• Balance sheet transformation, virtually eliminating debt and improving financial flexibility.
• Strategically impactful capex (TAN plant) on the near-term horizon.
• Healthy liquidity and index inclusion, supporting both entry and exit discipline.
• Active governance evolution and sectoral alignment with structural agri and policy megatrends.

Against this backdrop, and with the share price consolidating at strong support after a period of remarkable outperformance, Chambal Fertilisers seems to represent an excellent opportunity for investors seeking a fusion of value, growth, and sectoral relevance in the Indian equity landscape. As the company approaches its next phase of operational expansion and the cyclical tailwinds for agri-inputs gather momentum, the stock may be entering a new bullish phase—one that justifies renewed interest and positioning by forward-looking investors.

In essence, Chambal Fertilisers stands at the intersection of compelling fundamentals and actionable technicals, and the evidence points to the potential for further long-term value creation as the company capitalises on India's evolving agricultural and industrial opportunity set.

How to buy Chambal Fertilisers stock in IN?

Buying Chambal Fertilisers stock online is a straightforward and secure process when you use a regulated broker in India. Whether you’re looking to invest for the long term or take advantage of market movements over a shorter horizon, you have two main options: purchasing shares outright (spot buying) or trading via Contracts for Difference (CFDs). Spot buying allows you to own the shares directly, while CFD trading is typically used for leveraged, short-term strategies. Below, we explain both approaches in detail to help you make an informed decision. For a detailed broker comparison tailored to Indian investors, check out the section later on this page.

Spot buying

What is spot buying of Chambal Fertilisers stock?
Spot buying means you are purchasing real shares of Chambal Fertilisers (NSE: CHAMBLFERT) on the Indian stock market and become a part-owner of the company. You can profit from potential share price appreciation and receive dividends, if paid. To do this, you simply need a demat and trading account with an authorised Indian broker.

What are the typical fees?
Indian brokers commonly charge a fixed commission per order, usually ₹20–₹25 for online trades, along with small statutory charges (STT, GST, etc.). For most retail investors, total fees for a standard order are modest.

Concrete example

Suppose the Chambal Fertilisers share price is ₹621.75 (as of May 2025). With a INR 83,000 stake (approx. USD $1,000), you could buy about 133 shares ( ₹83,000 / ₹621.75 ≈ 133), accounting for a brokerage fee of around ₹400 (approx. $5).

• ✔️ Gain scenario:
  If the share price rises by 10%, your 133 shares would now be worth ₹91,300 (133 × ₹683.93).
• Result: That’s a ₹8,300 gross gain, equivalent to a +10% return on your investment.

Trading via CFD

What is CFD trading on Chambal Fertilisers?
CFD (Contract for Difference) trading allows you to speculate on the price movement of Chambal Fertilisers without owning the underlying shares. With CFDs, you can trade both upwards (going long) and downwards (going short) price trends, often using leverage to amplify your exposure.

What are the fees?
CFDs incur a spread (the difference between buy and sell price) and, if you hold positions overnight, daily financing charges. These costs can add up, especially with high leverage or extended holding periods.

Example

Example with a $1,000 (approx. ₹83,000) stake and 5x leverage:
You open a CFD position worth ₹415,000 (≈ $5,000 exposure) by committing ₹83,000 as margin.

• ✔️ Gain scenario:
  If Chambal Fertilisers stock rises by 8%, your CFD position gains 8% × 5 = 40%.
• Result: This nets you a ₹33,200 gain (40% of ₹83,000), or about $400 (excluding spread and overnight fees).

Final advice

Before you invest, it’s crucial to compare brokers’ fees, platform features, and customer service. Spot buying is well suited for investors seeking real ownership and long-term value, while CFDs cater to those aiming for short-term opportunities and comfortable with higher risk. Your choice depends on your objectives and risk profile. To help you choose the best platform for your needs, our comprehensive broker comparison is available further down the page.

Our 7 tips for buying Chambal Fertilisers stock

The latest news about Chambal Fertilisers

Chambal Fertilisers reported a strong net profit increase of 34.7% year-on-year in Q4 FY25. Despite a 7.35% decline in revenue to ₹2,448.73 crore for the quarter ending March 2025, the company’s net profit rose to ₹130.4 crore. This profitability improvement was achieved even as EBITDA fell slightly by 1.9%, with EBITDA margin improving to 6.7% from 6.3% the previous year. The earnings per share for the quarter stood at ₹3.25, highlighting the company’s operational efficiency and cost control amid a challenging market environment.

The company continued its substantial debt reduction, positioning itself as nearly debt-free and financially robust. The recent financial disclosures confirm that Chambal Fertilisers has achieved a significant reduction in its net debt, reinforcing its balance sheet strength and reducing future interest burdens. This strategic deleveraging not only supports the company’s resilience in volatile commodity cycles but also enables it to focus on expansion and sustainable shareholder returns, which is particularly relevant in the context of India’s fertilizer sector and its subsidy-driven landscape.

A new Technical Ammonium Nitrate (TAN) plant is scheduled to be commissioned in January 2026, supporting future growth. The ongoing project to commission a TAN plant in Kota, Rajasthan, remains on schedule, representing a key growth catalyst for Chambal Fertilisers. The addition of this specialty chemical segment is expected to diversify revenues, enhance profitability, and possibly mitigate cyclicality in urea demand, securing a stronger market position within India’s industrial and agricultural supply chains over the medium term.

Chambal Fertilisers maintained a healthy dividend payout ratio of 24%, supporting investor confidence with consistent returns. For FY25, the annual net profit reached ₹1,649 crore with an EPS of ₹41.17, and the board sustained a steady dividend yield of 1.21%. This tradition of rewarding shareholders is underpinned by solid operating performance and prudent capital allocation. The company’s presence in major indices such as BSE 500 and Nifty 500 further strengthens its appeal amid institutional and retail investors in India.

Technical indicators show near-term bearishness, but the stock retains strong long-term momentum and outperformance. Though Chambal Fertilisers' share price declined 10.4% over the latest week and currently trades below key short-term moving averages, its twelve-month return remains robust at +55.15%. The RSI of 37.1 and current price positioning suggest neutral to mildly bearish short-term sentiment, yet the stock’s performance over six months (+33.91%) and its consistent crossing above long-term moving averages underscore sustained investor interest and potential resilience once near-term pressures subside.

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P. Laurore

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Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.