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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Aether Industri.

Privi Speci.

Elantas Beck

Alkyl Amines

Archean Chemical

Epigral

Galaxy Surfact.

Jubilant Ingrev.

Clean Science

Balaji Amines

Laxmi Organic

Why is Archean Chemical Industries Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of -7.69% and Operating profit at -28.74% over the last 5 years

With a fall in Net Sales of -8.55%, the company declared Very Negative results in Dec 25

The company has declared negative results for the last 2 consecutive quarters
INTEREST(Latest six months) At Rs 9.94 cr has Grown at 75.31%
PAT(Q) At Rs 23.64 cr has Fallen at -44.6% (vs previous 4Q average)
ROCE(HY) Lowest at 11.55%

With ROE of 9, it has a Very Expensive valuation with a 3.7 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 4.95%, its profits have fallen by -24.5%

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, Medium Return

Absolute

Risk Adjusted

Volatility

Archean Chemical

4.95%

0.13

38.37%

Sensex

7.07%

0.61

11.53%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.69%

EBIT Growth (5y)

-28.74%

EBIT to Interest (avg)

22.58

Debt to EBITDA (avg)

0.41

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

0.69

Tax Ratio

28.65%

Dividend Payout Ratio

22.84%

Pledged Shares

13.92%

Institutional Holding

36.33%

ROCE (avg)

26.51%

ROE (avg)

16.06%

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

3.71

EV to EBIT

37.31

EV to EBITDA

25.30

EV to Capital Employed

3.57

EV to Sales

6.37

PEG Ratio

Dividend Yield

0.52%

ROCE (Latest)

11.02%

ROE (Latest)

8.97%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-28What is not working for the Company

INTEREST(Latest six months)

At Rs 9.94 cr has Grown at 75.31%

PAT(Q)

At Rs 23.64 cr has Fallen at -44.6% (vs previous 4Q average

ROCE(HY)

Lowest at 11.55%

DEBT-EQUITY RATIO(HY)

Highest at 0.15 times

NET SALES(Q)

At Rs 254.56 cr has Fallen at -8.5% (vs previous 4Q average

PBDIT(Q)

Lowest at Rs 54.39 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 21.37%

PBT LESS OI(Q)

Lowest at Rs 26.38 cr.

EPS(Q)

Lowest at Rs 1.91

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Here's what is not working for Archean Chemical

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 26.38 cr has Fallen at -49.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 51.77 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 23.64 cr has Fallen at -44.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 42.70 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Latest six months

At Rs 9.94 cr has Grown at 75.31%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.15 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

Net Sales - Quarterly

At Rs 254.56 cr has Fallen at -8.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 278.35 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 54.39 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 21.37%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 26.38 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 1.91

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)