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

Jubilant Ingrev.

Styrenix Perfor.

Elantas Beck

Alkyl Amines

Clean Science

Galaxy Surfact.

Epigral

Archean Chemical

Laxmi Organic

Balaji Amines

Jubilant Agri

Why is Archean Chemical Industries Ltd ?

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

With a fall in Operating Profit of -20.1%, the company declared Very Negative results in Sep 25

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)

With ROE of 9, it has a Very Expensive valuation with a 3.2 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 -24.25%, its profits have fallen by -31%

Below par performance in long term as well as near term

Along with generating -24.25% 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

-24.25%

-0.61

39.58%

Sensex

4.8%

0.41

11.82%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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%

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

3.23

EV to EBIT

28.26

EV to EBITDA

20.23

EV to Capital Employed

3.12

EV to Sales

5.61

PEG Ratio

Dividend Yield

0.60%

ROCE (Latest)

11.02%

ROE (Latest)

8.97%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

1What 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

OPERATING PROFIT TO INTEREST (Q)

Lowest at 11.34 times

NET SALES(Q)

Lowest at Rs 233.18 cr

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 period

MOJO 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 Cr

MOJO 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 Cr

MOJO 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 years

MOJO 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 Cr

MOJO 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 quarters

MOJO 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 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

Lowest at Rs 233.18 cr

in the last five quarters

MOJO 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 quarters

MOJO 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 quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)