ScoreWhy is Archean Chemical Industries Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of -6.76% and Operating profit at -23.20% over the last 5 years
2
With a fall in Operating Profit of -20.1%, the company declared Very Negative results in Sep 25
- The company has declared negative results for the last 7 consecutive quarters
- INTEREST(Latest six months) At Rs 10.90 cr has Grown at 240.63%
- OPERATING CF(Y) Lowest at Rs 176.23 Cr
- PAT(Q) At Rs 29.09 cr has Fallen at -37.2% (vs previous 4Q average)
3
With ROE of 9, it has a Very Expensive valuation with a 3.3 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -27.26%, its profits have fallen by -31%
4
Below par performance in long term as well as near term
- Along with generating -27.26% 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 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?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Archean Chemical
-27.26%
-0.69
39.79%
Sensex
4.83%
0.41
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-6.76%
EBIT Growth (5y)
-23.20%
EBIT to Interest (avg)
18.33
Debt to EBITDA (avg)
0.41
Net Debt to Equity (avg)
0.05
Sales to Capital Employed (avg)
0.69
Tax Ratio
28.36%
Dividend Payout Ratio
22.84%
Pledged Shares
12.01%
Institutional Holding
36.67%
ROCE (avg)
26.51%
ROE (avg)
16.06%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
36
Industry P/E
40
Price to Book Value
3.27
EV to EBIT
28.61
EV to EBITDA
20.48
EV to Capital Employed
3.15
EV to Sales
5.68
PEG Ratio
NA
Dividend Yield
0.59%
ROCE (Latest)
11.02%
ROE (Latest)
8.97%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
NO KEY POSITIVE TRIGGERS
-30What is not working for the Company
INTEREST(Latest six months)
At Rs 10.90 cr has Grown at 240.63%
OPERATING CF(Y)
Lowest at Rs 176.23 Cr
PAT(Q)
At Rs 29.09 cr has Fallen at -37.2% (vs previous 4Q average
ROCE(HY)
Lowest at 11.55%
DEBT-EQUITY RATIO(HY)
Highest at 0.15 times
NET SALES(Q)
At Rs 233.18 cr has Fallen at -16.8% (vs previous 4Q average
OPERATING PROFIT TO INTEREST (Q)
Lowest at 11.34 times
PBDIT(Q)
Lowest at Rs 62.60 cr.
PBT LESS OI(Q)
Lowest at Rs 33.53 cr.
Loading Valuation Snapshot...
Here's what is not working for Archean Chemical
Interest - Latest six months
At Rs 10.90 cr has Grown at 240.63%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 33.53 cr has Fallen at -40.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 56.40 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 29.09 cr has Fallen at -37.2% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 46.31 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Cash Flow - Annually
Lowest at Rs 176.23 Cr and Fallen
each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (Rs Cr)
Net Sales - Quarterly
At Rs 233.18 cr has Fallen at -16.8% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 280.17 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Operating Profit to Interest - Quarterly
Lowest at 11.34 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debt-Equity Ratio - Half Yearly
Highest at 0.15 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
Net Sales - Quarterly
Lowest at Rs 233.18 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 62.60 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 33.53 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
