Archean Chemical Industries Ltd. (ACI) AI Stock Analysis

• Market Cap: ₹63.24B
• Dividend Yield: 0.78%
• Average Volume (3M): 8.93K
• Price to Earnings (P/E): 37.0
• Beta (1Y): 0.76
• Revenue Growth: -3.15%
• EPS Growth: -22.30%
• Country: IN
• Employees: 288
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 2.40
• Shares Outstanding: 123,427,680
• 10 Day Avg. Volume: 6,499
• 30 Day Avg. Volume: 8,929
• PEG Ratio: -0.81
• Price to Book (P/B): 3.47
• Price to Sales (P/S): 6.21
• P/FCF Ratio: -74.07
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹613.00 ▲(19.64% Upside)

Archean Chemical Industries Ltd. has a mixed financial performance with strong operational efficiency but challenges in revenue growth and cash flow management. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold conditions. The valuation suggests the stock may be overvalued, with a high P/E ratio and modest dividend yield. These factors collectively result in a moderate overall stock score.

Positive Factors

Operational Efficiency

Strong operational efficiency indicates effective management and cost control, supporting long-term profitability and competitiveness.

Financial Stability

Improved leverage and financial stability enhance the company's ability to withstand economic fluctuations and invest in growth opportunities.

Cash Generation

Strong operating cash flow supports ongoing operations and strategic investments, ensuring the company can sustain its growth and financial commitments.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth poses a risk to future profitability, potentially limiting the company's ability to expand and invest in new opportunities.

Profitability Decline

Decreased net profit margin affects overall profitability, making it challenging to maintain competitive pricing and reinvest in business growth.

Cash Flow Management

Inefficiencies in converting income into cash flow can impact liquidity, limiting the company's ability to fund operations and growth initiatives.

Archean Chemical Industries Ltd. Business Overview & Revenue Model

Company Description

Archean Chemical Industries Ltd. (ACI) is a prominent player in the chemical manufacturing sector, specializing in the production of marine chemicals, industrial chemicals, and specialty chemicals. The company operates primarily in the sectors of chemicals for agriculture, water treatment, and other industrial applications. ACI's core products include bromine, which is used in various applications such as flame retardants and water treatment, along with other specialty chemicals that cater to diverse industrial needs.

How the Company Makes Money

Archean Chemical Industries Ltd. generates revenue through multiple key streams, primarily by manufacturing and selling a range of chemical products to various industries. Its revenue model is based on the production of both bulk and specialty chemicals, which are sold to clients in sectors such as agriculture, water treatment, and industrial manufacturing. The company also benefits from strategic partnerships with key players in the industry, enhancing its market reach and distribution capabilities. Additionally, ACI's commitment to innovation and quality allows it to maintain competitive pricing and secure long-term contracts, contributing significantly to its earnings.

Archean Chemical Industries Ltd. Financial Statement Overview

Summary

Archean Chemical Industries Ltd. shows a combination of strengths and weaknesses across its financial statements. The income statement demonstrates solid operational efficiency but faces challenges in revenue growth and profitability. The balance sheet reflects improved leverage and financial stability, despite a decline in return on equity. Cash flow management needs improvement to ensure sustainable liquidity.

Income Statement

Archean Chemical Industries Ltd. has demonstrated a mixed performance in its income statement. The gross profit margin is robust, indicating effective cost management. However, the net profit margin has decreased due to declining revenue and increased operational costs, impacting profitability. Revenue growth has been inconsistent, with declines in recent years, which pose a risk to future profitability. The EBIT and EBITDA margins remain healthy, reflecting strong operational efficiency.

Balance Sheet

The balance sheet shows a strong equity position with a solid equity ratio, indicating financial stability. The debt-to-equity ratio has significantly improved over the years, suggesting reduced leverage and better financial health. However, the return on equity has declined, implying less efficient use of equity capital. Overall, the balance sheet portrays a stable financial position with manageable liabilities.

Cash Flow

The cash flow analysis reveals challenges in maintaining positive free cash flow, as seen in the most recent negative figures. Operating cash flow remains strong, indicating good cash generation from core operations. However, the free cash flow to net income ratio indicates inefficiencies in converting income into cash flow, which could impact liquidity if not addressed. The company needs to manage capital expenditures more effectively to improve cash flow stability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.21B	10.41B	13.30B	14.40B	11.30B	7.39B
Gross Profit	10.85B	10.49B	12.16B	14.37B	8.50B	5.62B
EBITDA	3.17B	3.11B	5.06B	6.77B	4.79B	2.76B
Net Income	1.58B	1.62B	3.19B	3.83B	1.88B	666.06M
Balance Sheet
Total Assets	0.00	23.93B	20.56B	17.55B	15.31B	14.32B
Cash, Cash Equivalents and Short-Term Investments	2.43B	2.55B	3.95B	2.31B	695.11M	555.29M
Total Debt	0.00	2.35B	978.23M	693.85M	9.00B	9.06B
Total Liabilities	-18.64B	5.29B	3.54B	3.24B	12.69B	13.60B
Stockholders Equity	18.64B	18.64B	17.02B	14.31B	2.62B	723.83M
Cash Flow
Free Cash Flow	0.00	-873.38M	1.71B	3.96B	2.18B	1.09B
Operating Cash Flow	0.00	1.76B	3.79B	4.96B	3.15B	1.19B
Investing Cash Flow	0.00	-2.46B	-3.07B	-2.90B	-1.10B	-17.52M
Financing Cash Flow	0.00	649.80M	-325.69M	-2.12B	-2.24B	-1.10B

Archean Chemical Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 512.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ACI, the sentiment is Negative. The current price of 512.35 is below the 20-day moving average (MA) of 594.31, below the 50-day MA of 638.01, and below the 200-day MA of 616.40, indicating a bearish trend. The MACD of -35.48 indicates Positive momentum. The RSI at 18.16 is Positive, neither overbought nor oversold. The STOCH value of 5.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ACI.

Archean Chemical Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNFC	70 Outperform	₹72.90B	12.97	―	3.62%	-7.53%	42.74%
GSFC	68 Neutral	₹73.84B	11.05	―	2.70%	15.25%	26.49%
PRIVISCL	64 Neutral	₹116.50B	43.66	―	0.16%	24.25%	96.45%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
REFEX	60 Neutral	₹44.60B	26.57	―	0.15%	21.67%	25.86%
GUJALKALI	59 Neutral	₹41.42B	-120.51	―	2.99%	10.35%	―
ACI	55 Neutral	₹63.24B	37.03	―	0.78%	-3.15%	-22.30%

Archean Chemical Industries Ltd. Corporate Events

Archean Chemical Industries Reports Strong Q2 Financial Performance

Archean Chemical Industries Ltd. announced the approval of its un-audited financial results for the quarter and half-year ending September 30, 2025, during a board meeting. The results, reviewed by the audit committee, show a profit after tax of Rs. 3,846.27 lakhs for the quarter, indicating a strong financial performance. This announcement underscores the company’s solid market position and operational efficiency, which are likely to have positive implications for stakeholders.

Archean Chemical Industries Schedules Earnings Call for Q2 & H1 FY26 Results

Archean Chemical Industries Limited has announced the schedule for its upcoming earnings call, which will discuss the company’s financial results for the quarter and half-year ending September 30, 2025. The call is scheduled for November 18, 2025, at 11:30 AM IST, and will provide insights into the company’s operational and financial performance, potentially impacting its market positioning and stakeholder interests.