Archean Chemical

Why is Archean Chemical Industries Ltd falling/rising?

As of 23-Jun, the stock price of Archean Chemical Industries Ltd is Rs 532.45, down 0.26%. The stock has underperformed over the past year and shows declining financial metrics, leading to decreased investor confidence despite some positive management efficiency indicators.

As of 23-Jun, the stock price of Archean Chemical Industries Ltd is currently at Rs 532.45, reflecting a decrease of Rs 1.4 or 0.26%. The stock has shown a trend reversal, having fallen after two consecutive days of gains. Despite outperforming its sector by 0.46% today, the stock's performance has been negatively impacted by a significant decline in investor participation, with delivery volume falling by 5.53% against the five-day average.<BR><BR>Over the past year, the stock has generated a return of -13.91%, indicating consistent underperformance against the benchmark. This trend is further exacerbated by the company's poor long-term growth, with net sales declining at an annual rate of -9.14% and operating profit dropping by -36.33% over the last five years. Additionally, the company has reported negative results for the last nine consecutive quarters, with a notable decrease in profit after tax of -63.3% compared to the previous four-quarter average.<BR><BR>While the company does exhibit high management efficiency with a return on capital employed (ROCE) of 22.97% and has a low debt-to-equity ratio of 0.05 times, these positive factors are overshadowed by the overall financial performance and valuation concerns. The stock is trading at a premium compared to its peers, and its ROCE has fallen to 6.2, indicating a very expensive valuation. Consequently, these factors contribute to the stock's decline, reflecting a lack of investor confidence in its future growth prospects.

Which are the latest news on Archean Chemical?

What does Archean Chemical do?

Archean Chemical Industries Ltd is a small-cap company in the specialty chemicals sector, reporting net sales of ₹301 Cr and a net profit of ₹13 Cr for the quarter ending March 2026. Key metrics include a P/E ratio of 62.00 and a market cap of ₹6,778 Cr.

Overview:<BR>Archean Chemical Industries Ltd operates in the specialty chemicals industry and is categorized as a small-cap company.<BR><BR>History:<BR>The company was originally formed as a Partnership Firm under the name "Archean Chemical Industries" in Chennai, with its incorporation dating back to November 20, 2003. The latest quarterly results reported net sales and net profit for the period ending March 2026.<BR><BR>Financial Snapshot:<BR>Net Sales: 301 Cr (Quarterly Results - Mar 2026)<BR>Net Profit: 13 Cr (Quarterly Results - Mar 2026)<BR>Market Cap: INR 6,778 Cr (Small Cap)<BR><BR>Key Metrics:<BR>P/E: 62.00<BR>Industry P/E: 42<BR>Dividend Yield: 0.46%<BR>Debt Equity: 0.21<BR>Return on Equity: 5.50%<BR>Price to Book: 3.47<BR><BR>Contact Details:<BR>Registrar Address: Not available.

How big is Archean Chemical?

As of 10th June, Archean Chemical Industries Ltd has a market capitalization of 6,778.00 Cr, with recent net sales of 1,081.04 Cr and a net profit of 106.34 Cr over the last four quarters.

As of 10th June, <BR><BR>Market Cap: Archean Chemical Industries Ltd has a market capitalization of 6,778.00 Cr, categorizing it as a Small Cap company.<BR><BR>Recent Quarterly Performance: The sum of Net Sales for the latest 4 quarters is 1,081.04 Cr, while the sum of Net Profit for the same period is 106.34 Cr.<BR><BR>Balance Sheet Snapshot: The reporting period is March 2026, with Shareholder's Funds amounting to 1,934.39 Cr and Total Assets totaling 2,664.78 Cr.

Who are in the management team of Archean Chemical?

The management team of Archean Chemical includes P. Ranjit (Managing Director), Subrahmanyam Meenakshisundaram, P. Ravi (Directors), and three Independent Directors: Padma Chandrasekaran, C. G. Sethuram, and Kandheri Munuswamy Mohandass, along with G. Arunmozhi (Company Secretary & Compliance Officer).

The management team of Archean Chemical includes the following individuals:<BR><BR>1. **P. Ranjit** - Managing Director<BR>2. **Subrahmanyam Meenakshisundaram** - Director<BR>3. **P. Ravi** - Director<BR>4. **Padma Chandrasekaran** - Independent Director<BR>5. **C. G. Sethuram** - Independent Director<BR>6. **Kandheri Munuswamy Mohandass** - Independent Director<BR>7. **G. Arunmozhi** - Company Secretary & Compliance Officer<BR><BR>If you have any more questions about the company or its operations, feel free to ask!

Who are the peers of the Archean Chemical?

Archean Chemical's peers include Jubilant Ingrev., Alkyl Amines, Clean Science, and others, with varying management risks and growth rates. Balaji Amines leads in 1-year returns at 43.99%, while Archean Chemical has a return of -15.72%.

Peers: The peers of Archean Chemical are Jubilant Ingrev., Alkyl Amines, Clean Science, Elantas Beck, Balaji Amines, Galaxy Surfact., Neogen Chemicals, Epigral, Fineotex Chem, and Laxmi Organic.<BR><BR>Quality Snapshot: Excellent management risk is observed at Clean Science, Fineotex Chem, and Epigral, while Good management risk is found at Jubilant Ingrev., Alkyl Amines, Elantas Beck, Archean Chemical, and the rest. Average management risk is present at Balaji Amines, Galaxy Surfact., and Neogen Chemicals. All peers exhibit Below Average growth, except for Fineotex Chem, which has Average growth. Excellent capital structure is noted for Jubilant Ingrev., Alkyl Amines, Clean Science, Elantas Beck, Balaji Amines, Archean Chemical, and the rest, while Neogen Chemicals shows Below Average capital structure.<BR><BR>Return Snapshot: Balaji Amines has the highest 1-year return at 43.99%, while Clean Science has the lowest at -50.53%. Archean Chemical's 1-year return is -15.72%, which is higher than Clean Science but lower than Balaji Amines. Additionally, the six-month returns for Galaxy Surfact., Clean Science, and Epigral are negative.

Should I buy, sell or hold Archean Chemical Industries Ltd?

Are Archean Chemical Industries Ltd latest results good or bad?

The latest results for Archean Chemical Industries Ltd are negative, with a 74.93% decline in net profit to ₹13.42 crores and a 12.92% drop in net sales to ₹300.94 crores, alongside a significant increase in interest expenses, indicating serious operational challenges.

The latest results for Archean Chemical Industries Ltd indicate a significantly negative performance. In Q4 FY26, the company experienced a dramatic decline in net profit, which fell by 74.93% year-on-year to ₹13.42 crores. This sharp drop was primarily driven by a 12.92% decrease in net sales, which amounted to ₹300.94 crores, and a severe contraction in operating profit margins, which plummeted to 14.52% from 25.55% in the same quarter last year.<BR><BR>The situation is further compounded by a substantial increase in interest expenses, which surged to ₹10.43 crores—up from just ₹0.29 crores a year earlier. This rise in interest costs has raised concerns about the company's ability to maintain profitability, especially as it struggles with operational challenges and margin compression.<BR><BR>Overall, the financial metrics reflect a concerning trend, with multiple indicators hitting multi-quarter lows. The company's performance has turned decisively negative, suggesting that the latest results are indeed bad for Archean Chemical Industries Ltd.

Is Archean Chemical technically bullish or bearish?

As of November 18, 2025, Archean Chemical's trend has shifted to mildly bearish, supported by bearish signals from the MACD, Bollinger Bands, and Dow Theory, despite a mildly bullish daily moving average.

As of 18 November 2025, the technical trend for Archean Chemical has changed from sideways to mildly bearish. The current stance is mildly bearish, driven by the weekly MACD and Bollinger Bands both indicating bearish conditions. The Dow Theory also supports this with a mildly bearish signal on both weekly and monthly time frames. Although the daily moving averages show a mildly bullish trend, the overall indicators suggest weakness, particularly with the stock's recent performance against the Sensex, showing a significant decline over the past month and year.

How has been the historical performance of Archean Chemical?

Archean Chemical's historical performance shows a decline in net sales, operating profit, and profit after tax from March 2023 to March 2025, despite an increase in total assets and liabilities. Cash flow from operating activities also decreased significantly, indicating challenges in profitability and cash generation.

Answer:<BR>The historical performance of Archean Chemical shows a fluctuating trend in key financial metrics over the years.<BR><BR>Breakdown:<BR>Archean Chemical's net sales have experienced a decline from INR 1,441.07 crore in March 2023 to INR 1,041.02 crore in March 2025, with a peak of INR 1,441.07 crore in March 2023. The total operating income followed a similar trend, decreasing from INR 1,441.07 crore in March 2023 to INR 1,041.02 crore in March 2025. The operating profit (PBDIT) also saw a decline, dropping from INR 677.27 crore in March 2023 to INR 351.43 crore in March 2025. Despite this, profit after tax decreased from INR 382.56 crore in March 2023 to INR 162.14 crore in March 2025, indicating a significant reduction in profitability. On the balance sheet, total assets increased from INR 1,531.31 crore in March 2022 to INR 2,389.03 crore in March 2025, while total liabilities rose from INR 1,531.31 crore to INR 2,389.03 crore in the same period. Cash flow from operating activities decreased from INR 496 crore in March 2023 to INR 176 crore in March 2025, reflecting challenges in cash generation. Overall, Archean Chemical's financial performance indicates a decline in revenue and profitability, despite growth in total assets and liabilities.

When is the next results date for Archean Chemical?

The next results date for Archean Chemical is 14 November 2025.

The next results date for Archean Chemical is scheduled for 14 November 2025.

Who are the top shareholders of the Archean Chemical?

The top shareholders of Archean Chemical include Chemikas Speciality LLP with 30.54%, mutual funds at 15.56% (led by SBI Small Cap Fund at 6.88%), foreign institutional investors at 10.94%, and individual investors holding 9.52%. Additionally, there is a pledged promoter holding of 6.974%.

The top shareholders of Archean Chemical include a mix of promoters, mutual funds, and foreign institutional investors (FIIs). The majority shareholders are the promoters, with Chemikas Speciality LLP holding the largest stake at 30.54%. Additionally, mutual funds collectively hold 15.56% of the company, with the SBI Small Cap Fund being the highest public shareholder at 6.88%. FIIs account for 10.94% of the shares, and individual investors hold 9.52%. Notably, there is a pledged promoter holding of 6.974%.

Is Archean Chemical overvalued or undervalued?

As of November 22, 2022, Archean Chemical is considered very expensive and overvalued with a PE Ratio of 41.74 and an EV to EBITDA of 25.16, despite outperforming the Sensex recently, indicating it may not be a compelling investment at its current price of 644.70.

As of 22 November 2022, the valuation grade for Archean Chemical moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial ratios, which include a PE Ratio of 41.74, an EV to EBITDA of 25.16, and a Price to Book Value of 4.25. These figures suggest that the stock is trading at a premium compared to its earnings and assets.<BR><BR>In comparison to its peers, Archean Chemical's PE Ratio is notably lower than Solar Industries India Ltd., which has a PE of 123.77, but higher than Godrej Industries Ltd. at 46.63. Additionally, the EV to EBITDA ratio of Archean is higher than that of Deepak Nitrite Ltd. at 24.57, further supporting the notion of overvaluation. Despite a recent strong performance relative to the Sensex, with a 1-month return of 15.95% compared to the Sensex's 3.81%, the overall valuation metrics indicate that Archean Chemical is not a compelling investment at its current price of 644.70.

Has Archean Chemical declared dividend?

Yes, Archean Chemical Industries Ltd has declared a 150% dividend, amounting to ₹3 per share, with an ex-date of May 26, 2025. The dividend yield is 0.63%, and while recent total returns have varied, the company has shown positive returns over the longer term.

Archean Chemical Industries Ltd has declared a 150% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 150%<BR>- Amount per share: 3<BR>- Ex-date: May 26, 2025<BR><BR>Dividend Yield: 0.63%<BR><BR>Total Returns by Period:<BR>Over the last 6 months, the price return was -7.19%, the dividend return was 0.43%, resulting in a total return of -6.76%.<BR><BR>In the past year, the price return was 5.72%, the dividend return was 0.64%, leading to a total return of 6.36%.<BR><BR>For the 2-year period, the price return was 9.71%, the dividend return was 1.53%, culminating in a total return of 11.24%.<BR><BR>Over the last 3 years, there was no price return and no dividend return, resulting in a total return of 0.0%.<BR><BR>In the 4-year period, there was also no price return and no dividend return, leading to a total return of 0.0%.<BR><BR>For the 5-year period, the price return and dividend return remained at 0%, resulting in a total return of 0.0%.<BR><BR>Overall, Archean Chemical has declared a significant dividend, and while the recent total returns show variability, the company has managed to provide positive returns over the longer term despite some periods of stagnation.