Archean Chemical Industries Ltd (ACI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Yasho Industries

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Elantas Beck

Balaji Amines

Epigral

Galaxy Surfact.

Clean Science

Archean Chemical

Why is Archean Chemical Industries Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of -6.92% and Operating profit at -37.00% over the last 5 years

The company has declared Negative results for the last 10 consecutive quarters

OPERATING CF(Y) Lowest at Rs 139.63 Cr
PAT(Latest six months) At Rs 44.10 cr has Grown at -52.95%
INTEREST(Latest six months) At Rs 15.88 cr has Grown at 59.76%

With ROCE of 6.2, it has a Very Expensive valuation with a 3 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -16.76%, its profits have fallen by -47.7%

29.16% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
The proportion of pledged holdings has increased by 7.23% over the last quarter

Below par performance in long term as well as near term

Along with generating -16.76% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Archean Chemical for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Archean Chemical

-16.84%

-0.50

33.60%

Sensex

-3.09%

-0.21

13.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.92%

EBIT Growth (5y)

-37.00%

EBIT to Interest (avg)

20.01

Debt to EBITDA (avg)

0.63

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

0.66

Tax Ratio

28.27%

Dividend Payout Ratio

28.88%

Pledged Shares

29.16%

Institutional Holding

35.18%

ROCE (avg)

23.61%

ROE (avg)

15.29%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.42

EV to EBIT

52.11

EV to EBITDA

30.82

EV to Capital Employed

3.00

EV to Sales

6.30

PEG Ratio

Dividend Yield

0.47%

ROCE (Latest)

6.24%

ROE (Latest)

5.50%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DPR(Y)

Highest at 28.88%

NET SALES(Q)

Highest at Rs 327.20 cr

PBT LESS OI(Q)

At Rs 38.61 cr has Grown at 28.5% (vs previous 4Q average

-22What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 139.63 Cr

PAT(Latest six months)

At Rs 44.10 cr has Grown at -52.95%

INTEREST(Latest six months)

At Rs 15.88 cr has Grown at 59.76%

ROCE(HY)

Lowest at 7.20%

DEBT-EQUITY RATIO(HY)

Highest at 0.24 times

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.03 times

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Here's what is working for Archean Chemical

Dividend Payout Ratio (DPR) - Annually

Highest at 28.88% and Grown

each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Net Sales - Quarterly

Highest at Rs 327.20 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 327.20 cr has Grown at 21.1% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 270.26 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 38.61 cr has Grown at 28.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 30.04 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for Archean Chemical

Profit After Tax (PAT) - Latest six months

At Rs 44.10 cr has Grown at -52.95%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Latest six months

At Rs 15.88 cr has Grown at 59.76%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Cash Flow - Annually

Lowest at Rs 139.63 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.24 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio- Half Yearly

Lowest at 5.03 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio