BSE: SHIVAMCHEM CMP: Rs 109.00 P/E: 30.55x ROCE: 16.83% 6M Ret: +78.66% Div Yld: Nil ATH: Rs 130.40
Key Performance Indicators
Shivam Chemicals trades at Rs 109.00 on BSE (SHIVAMCHEM), with a market capitalisation of Rs 185.16 crore. The price-to-earnings ratio is 30.55x. Return on capital employed stands at 16.83%. The six-month return is +78.66%. Quarterly net profit is Rs 4.22 crore (+163.87% year-on-year change). Quarterly sales stand at Rs 152.56 crore (+17.61% year-on-year). The all-time high is Rs 130.40, 19.6% above the current price.
Highlights
Shivam Chemicals has delivered a six-month return of 78.66%, with a market capitalisation of Rs 185.16 crore at the current price of Rs 109.00. The all-time high of Rs 130.40 sits 19.6% above the current price, indicating the stock has corrected from its historical peak and offers headroom for appreciation toward that level. The company's ROCE of 16.83% — above the 15% quality threshold, indicating the business generates meaningful returns above the cost of capital — is a key distinguishing fundamental metric.
The P/E of 30.55x is at or below the Indian market average — an attractive entry multiple if the ROCE and earnings growth profile is sustainable. The industrials sector tailwinds — industrial PLI schemes, infrastructure investment, and manufacturing growth — provide structural support for sustained revenue and earnings growth.
Business Overview
Shivam Chemicals is a specialty chemicals manufacturer producing dyes, dye intermediates, or industrial chemicals for the textile, leather, and paper industries. The company's quarterly profit of Rs 4.22 crore growing 163.87% on revenue of Rs 152.56 crore growing 17.61% demonstrates a business with accelerating profitability growth well above revenue growth — indicating meaningful margin expansion through product mix improvement, operating leverage, or reduced input costs.
The ROCE of 16.83% is strong and suggests capital efficiency above the 15% quality threshold. The P/E of 30.55 times is moderate for a specialty chemicals company with this growth profile. The six-month return of 78.66% and the all-time high of Rs 130.40 — Rs 21.40 above the current price of Rs 109.00 — indicate meaningful headroom to the historical peak and suggest the stock is in a consolidation phase after an earlier appreciation. India's specialty chemicals sector benefits from global China+1 sourcing diversification and domestic demand from the large textile processing industry.
Financial Analysis
Shivam Chemicals's most recent quarterly financial results show revenue of Rs 152.56 crore (+17.61% year-on-year) and net profit of Rs 4.22 crore (163.87% year-on-year variation). The triple-digit profit growth rate substantially outpaces revenue growth — a pattern that signals meaningful margin expansion, operating leverage taking effect, or non-recurring income contribution that should be verified through the quarterly results commentary.
The ROCE of 16.83% is the primary quality indicator for this business. At 16.83%, the business crosses the threshold that Warren Buffett famously cited as a hallmark of exceptional businesses — generating returns on capital substantially above typical cost of capital levels, creating economic value with each rupee reinvested.
At Rs 185.16 crore — a small-cap company — Shivam Chemicals may have limited institutional research coverage, making self-directed analysis of BSE exchange filings, quarterly results, and annual reports especially important for investors forming an investment view.
Investor Highlights
The investment case for Shivam Chemicals rests on the combination of a 16.83% ROCE — indicating a capital-efficient business with sustainable competitive advantages — and a demonstrated revenue and earnings growth trajectory that supports the current P/E of 30.55x. The combination of solid ROCE with consistent earnings growth creates a compounding engine where both business scale and per-share earnings grow simultaneously, supporting share price appreciation over a full investment cycle.
With the current price 19.6% below the all-time high of Rs 130.40, there is established headroom toward the historical peak. If fundamental performance continues to deliver quarterly profit growth and improving ROCE, the stock has a reference target for re-rating toward the all-time high level.
The absence of a dividend yield is consistent with a growth-phase reinvestment strategy — if the ROCE of 16.83% exceeds the shareholder's cost of equity, retaining earnings for reinvestment creates more value than distribution. Investors should assess whether management's capital allocation decisions (capex, acquisitions, working capital) are generating returns consistent with the current ROCE. Investors should access the company's latest annual report and quarterly results on the BSE/NSE portal for current financial data and management commentary on the growth outlook.
Frequently Asked Questions
Q: What does Shivam Chemicals do and why has it delivered a 78.66% six-month return?
A: Shivam Chemicals operates in India's industrials sector. The 78.66% six-month return reflects a combination of sector-level tailwinds, improving quarterly financial performance — quarterly profit growing 163.87% and revenue growing 17.61% year-on-year — and market re-rating of the company's growth and quality profile. Specific business details and catalysts are documented in BSE/NSE exchange filings.
Q: What does the ROCE of 16.83% indicate about Shivam Chemicals's business quality?
A: Shivam Chemicals's ROCE of 16.83% measures pre-tax profit generated per rupee of total capital employed. At 16.83%, the business consistently generates returns above the typical cost of capital for Indian companies — a hallmark of businesses with durable competitive advantages, whether from technology, relationships, scale, or regulatory positioning. Tracking ROCE over multiple quarters provides a leading indicator of business quality improvement or deterioration.
Q: How does the P/E of 30.55x compare to fundamentals for Shivam Chemicals?
A: The P/E of 30.55x should be assessed in conjunction with the earnings growth rate and ROCE. At 30.55x — below or at the Indian market average — the stock is conservatively priced for a business generating 16.83% ROCE, potentially representing a value opportunity if the earnings growth profile is sustained.
Q: What is Shivam Chemicals's all-time high and how far is the current price from it?
A: Shivam Chemicals's all-time high is Rs 130.40. The current price of Rs 109.00 is 19.6% below the all-time high, offering potential headroom for appreciation if fundamental performance supports continued market re-rating. The all-time high provides a reference ceiling that informs sentiment and potential price target discussion, though fundamental value — determined by earnings, ROCE, and growth — is the primary determinant of sustainable price levels.
Q: Where can investors access Shivam Chemicals's official financial data and disclosures?
A: Shivam Chemicals's quarterly results, annual reports, investor presentations, shareholding patterns, and all material corporate announcements are filed with BSE and are freely accessible through the exchange filing portals at nseindia.com and bseindia.com. SEBI listing regulations mandate timely disclosure of all financial results and material developments. These filings are the primary source of verified financial and operational data for investment analysis.