Archean Chemical Industries Ltd. (ACI) AI Stock Analysis

• Market Cap: ₹80.47B
• Dividend Yield: 0.65%
• Average Volume (3M): 8.51K
• Price to Earnings (P/E): 51.1
• Beta (1Y): 0.76
• Revenue Growth: -6.59%
• EPS Growth: -41.72%
• Country: IN
• Employees: 288
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals
• EPS (TTM): 3.30
• Shares Outstanding: 123,427,680
• 10 Day Avg. Volume: 10,728
• 30 Day Avg. Volume: 8,507
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹676.00
• Price Target Upside: -2.65% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: ₹676.00 ▼(-2.65% Downside)

Archean Chemical Industries Ltd. has a moderate overall stock score driven primarily by its financial performance and technical analysis. The company's operational efficiency is strong, but challenges in revenue growth and cash flow management need addressing. Technical indicators suggest short-term bearish momentum. The high P/E ratio indicates potential overvaluation, while the dividend yield is modest.

Archean Chemical Industries Ltd. Business Overview & Revenue Model

Company Description

Archean Chemical Industries Ltd. (ACI) is a leading chemical manufacturing company specializing in the production of marine chemicals. The company operates primarily in the sectors of industrial chemicals, focusing on products such as bromine, industrial salt, and sulphate of potash. ACI leverages its strategic location near the Arabian Sea to access rich marine resources, enabling it to produce and supply high-quality chemicals to various industries globally.

How the Company Makes Money

Archean Chemical Industries Ltd. generates revenue through the production and sale of its core chemical products: bromine, industrial salt, and sulphate of potash. Bromine is a significant revenue driver due to its extensive applications across industries like pharmaceuticals, agriculture, and flame retardants. Industrial salt is another key revenue stream, primarily used in the chemical industry for chlorine and caustic soda production. Additionally, ACI produces sulphate of potash, a premium fertilizer, catering to the agriculture sector. The company's strategic partnerships with global distributors and its export-oriented business model further bolster its revenue, allowing it to tap into international markets and maintain a steady flow of earnings.

Archean Chemical Industries Ltd. Financial Statement Overview

Summary

Archean Chemical Industries Ltd. shows a mix of strengths and weaknesses in its financial performance. While the income statement reflects strong operational efficiency, revenue growth and profitability present challenges. The balance sheet indicates improved leverage and financial stability, yet cash flow management needs improvement to ensure 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	10.41B	10.41B	13.30B	14.40B	11.30B	7.39B
Gross Profit	10.15B	10.49B	12.16B	14.37B	8.50B	5.62B
EBITDA	3.11B	3.11B	5.06B	6.77B	4.79B	2.76B
Net Income	1.62B	1.62B	3.19B	3.83B	1.88B	666.06M
Balance Sheet
Total Assets	23.93B	23.93B	20.56B	17.55B	15.31B	14.32B
Cash, Cash Equivalents and Short-Term Investments	2.75B	2.75B	3.95B	2.31B	695.11M	555.29M
Total Debt	2.35B	2.35B	978.23M	693.85M	9.00B	9.06B
Total Liabilities	5.29B	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: Positive
• Last Price: 694.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ACI, the sentiment is Positive. The current price of 694.4 is above the 20-day moving average (MA) of 661.06, above the 50-day MA of 647.89, and above the 200-day MA of 613.25, indicating a neutral trend. The MACD of -6.49 indicates Positive momentum. The RSI at 50.84 is Neutral, neither overbought nor oversold. The STOCH value of 30.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	70 Outperform	¥179.17B	11.24	5.69%	3.09%	2.75%	-12.76%
GSFC	70 Outperform	₹81.33B	12.66		1.96%	3.26%	19.19%
PRIVISCL	66 Neutral	₹94.99B	43.66		0.21%	21.50%	78.82%
ACI	62 Neutral	₹80.47B	51.10		0.65%	-6.59%	-41.72%
GNFC	61 Neutral	₹73.87B	13.15		3.28%	-9.97%	9.63%
REFEX	58 Neutral	₹53.14B	31.71		0.12%	41.37%	31.76%
GUJALKALI	56 Neutral	₹41.14B	―		2.50%	8.51%	84.67%

Archean Chemical Industries Ltd. Corporate Events

Archean Chemical Releases Q1 FY26 Earnings Call Transcript

Archean Chemical Industries Ltd. announced the release of the transcript from its earnings call for the first quarter of fiscal year 2026, held on July 31, 2025. This call followed the announcement of the company’s financial results for the quarter ending June 30, 2025. The transcript, which is available on the company’s website, provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.