ScoreWhy is Archean Chemical Industries Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of -9.14% and Operating profit at -36.33% over the last 5 years
2
The company has declared negative results for the last 9 consecutive quarters
- PAT(Q) At Rs 13.42 cr has Fallen at -63.3% (vs previous 4Q average)
- ROCE(HY) Lowest at 7.20%
- DEBT-EQUITY RATIO(HY) Highest at 0.24 times
3
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 -12.85%, its profits have fallen by -44%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -12.85% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow 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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Archean Chemical
-12.87%
-0.40
31.91%
Sensex
-6.63%
-0.51
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-9.14%
EBIT Growth (5y)
-36.33%
EBIT to Interest (avg)
21.70
Debt to EBITDA (avg)
0.63
Net Debt to Equity (avg)
0.21
Sales to Capital Employed (avg)
0.66
Tax Ratio
28.34%
Dividend Payout Ratio
22.84%
Pledged Shares
21.93%
Institutional Holding
36.91%
ROCE (avg)
23.61%
ROE (avg)
15.29%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
62
Industry P/E
42
Price to Book Value
3.42
EV to EBIT
48.11
EV to EBITDA
29.39
EV to Capital Employed
3.00
EV to Sales
6.49
PEG Ratio
NA
Dividend Yield
0.56%
ROCE (Latest)
6.24%
ROE (Latest)
5.50%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-38What is not working for the Company
PAT(Q)
At Rs 13.42 cr has Fallen at -63.3% (vs previous 4Q average
ROCE(HY)
Lowest at 7.20%
DEBT-EQUITY RATIO(HY)
Highest at 0.24 times
INVENTORY TURNOVER RATIO(HY)
Lowest at 5.03 times
OPERATING PROFIT TO INTEREST (Q)
Lowest at 4.19 times
PBDIT(Q)
Lowest at Rs 43.69 cr.
PBT LESS OI(Q)
Lowest at Rs 10.47 cr.
INTEREST(Q)
Highest at Rs 10.43 cr
OPERATING PROFIT TO NET SALES (Q)
Lowest at 14.52%
NON-OPERATING INCOME(Q)
is 33.98 % of Profit Before Tax (PBT
EPS(Q)
Lowest at Rs 1.09
Loading Valuation Snapshot...
Here's what is not working for Archean Chemical
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 10.47 cr has Fallen at -76.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 44.14 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 13.42 cr has Fallen at -63.3% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 36.62 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Quarterly
At Rs 10.43 cr has Grown at 135.97%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 4.19 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 43.69 cr. and Fallen
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite negative
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 10.47 cr. and Fallen
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Lowest at Rs 13.42 cr. and Fallen
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.24 times and Grown
each half year in the last five half yearly periodsMOJO 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 periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Interest - Quarterly
Highest at Rs 10.43 cr
in the last five quarters and Increased by 135.97 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit Margin - Quarterly
Lowest at 14.52%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Non Operating Income - Quarterly
is 33.98 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Earnings per Share (EPS) - Quarterly
Lowest at Rs 1.09
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
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