Archean Chemical Industries Upgraded to 'Hold' by MarketsMOJO for Strong Management Efficiency and Growth

Archean Chemical Industries, a midcap company in the chemical industry, has recently been upgraded to a 'Hold' by MarketsMOJO on August 26, 2024. This upgrade is based on the company's high management efficiency, with a ROCE of 42.90%, and its healthy long-term growth, with an annual growth rate of 21.50% in net sales and 65.40% in operating profit.
The stock is currently in a bullish range, with technical trends showing improvement since August 22, 2024, and generating a return of -3.78% since then. Multiple factors, such as MACD, Bollinger Band, and KST, also indicate a bullish outlook for the stock.

One of the key reasons for the upgrade is the high institutional holdings at 32.92%. These investors have better capabilities and resources to analyze the fundamentals of companies, making their stake increase by 32.92% over the previous quarter.

However, the company declared very negative results in June 2024, with a fall in operating profit of -18.36%. This has been the case for the last two consecutive quarters, with PAT(Q) at Rs 44.86 crore, falling by -43.7%, and NET SALES(Q) at its lowest of Rs 212.69 crore, and PBDIT(Q) at its lowest of Rs 71.20 crore.

With a ROE of 18.7, the company has a very expensive valuation, with a 5.7 price to book value. However, the stock is currently trading at a discount compared to its average historical valuations. Over the past year, while the stock has generated a return of 32.86%, its profits have fallen by -16%.

Overall, with a 'Hold' rating from MarketsMOJO, investors should carefully consider the company's financial performance and valuation before making any investment decisions.