10x P/E urea + TAN
| Peer | Status | P/E | ROE | Mkt cap | Why we do not hold it (approved text) | Links |
|---|---|---|---|---|---|---|
| Chambal Fertilisers | Held | 8.69 | 18.77% | 16,753 Cr | 10x P/E urea + TAN | |
| Coromandel International | Not held | n/a | n/a | n/a | Coromandel trades at 31.3x TTM PE / 4.7x P/B with ROE 16% and Q1FY27 PAT -24% on DAP import-cost pressure; Chambal at 8.7x / 1.6x with 20% ROE is a much cheaper way to own fertiliser + crop-protection. | Screener · Tijori |
| GNFC | Not held | n/a | n/a | n/a | GNFC is similarly cheap (8.5x, 0.96x P/B, 3.5% yield) but ROE is only 9% and it took a 60%-of-contract gas cut during the Hormuz crisis; Chambal's 20% ROE, TAN upside and private-sector execution justify the small premium. | Screener · Tijori |
| National Fertilizers (NFL) | Not held | n/a | n/a | n/a | NFL is a PSU with 7.5% ROE, Rs 3,964 cr debt, FY26 PAT of only Rs 211 cr on Rs 21,519 cr revenue and Q1FY27 sales -21%; Chambal earns ~9x NFL's profit on similar revenue. | Screener · Tijori |
Peer numbers are shown only where the peer is in the security master (fundamentals pulled); "n/a" otherwise — a peer is not added to the data pull without a research request. Reasons are quoted from the one-pager (8 Sep 2026).
We own no specialty-chemical compounder (PI, SRF, Navin, Deepak) at 40–60x — the China-plus-one story has been priced for three years while Chinese dumping and agrochemical destocking hit earnings. Coromandel is the quality fertiliser name but at 25x prices its phosphates diversification. Tata Chemicals is a soda-ash cycle we do not want.
All sectors we avoid or underweight →Chambal Fertilisers (0.9%, Cyclical): a 10x P/E, 20% ROE, near-net-cash urea franchise with a TAN growth leg. Archean Chemical (0.6%, Cyclical): a cost-curve leader in bromine and salt at 35x FY28E on depressed pricing, with derivative capex adding value.
| DAP - Market share | 10 % | as of Mar 20 |
| Urea Sales Volume - Market Share | 9.50 % | as of Dec 21 |