Archean Chemical Industries Ltd. (ACI) AI Stock Analysis

• Market Cap: ₹64.56B
• Dividend Yield: 0.78%
• Average Volume (3M): 8.93K
• Price to Earnings (P/E): 37.8
• Beta (1Y): 0.71
• 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: 123,458,400
• 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: 58 Neutral
• Price Target: ₹528.00 ▲(2.51% Upside)

Archean Chemical Industries Ltd. faces significant challenges, primarily due to bearish technical indicators and valuation concerns. The stock is currently underperforming in the market, as indicated by its technical analysis. Financial performance shows operational efficiency but is hindered by revenue and cash flow issues. The high P/E ratio suggests potential overvaluation, while the dividend yield offers limited income. Addressing these challenges could improve the stock's outlook.

Positive Factors

Operational Efficiency

Strong operational efficiency indicates effective cost management, which can sustain profitability even amid revenue challenges.

Financial Stability

A strong equity position and improved debt-to-equity ratio enhance financial stability, providing a buffer against market volatility.

Cash Generation

Strong operating cash flow suggests robust core business performance, which is crucial for funding growth and maintaining liquidity.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth poses risks to future profitability and market position, necessitating strategic adjustments to drive sales.

Profitability Concerns

Decreasing net profit margins indicate pressure on profitability, which could affect long-term financial health if not addressed.

Cash Flow Management

Negative free cash flow highlights inefficiencies in capital expenditure management, potentially impacting liquidity and investment capacity.

Archean Chemical Industries Ltd. Business Overview & Revenue Model

Company Description

Archean Chemical Industries Limited manufactures and sells specialty marine chemicals in India and internationally. It offers bromine for use in pharmaceuticals, agrochemicals, water treatment products, flame retardants, additives, oil and gas industry, and energy storage batteries; industrial salt, a raw material for use in chemical industry for production of sodium carbonate, caustic soda, hydrochloric acid, chlorine, bleaching powders, chlorates, sodium sulphate, and sodium metal; and sulphate of potash for use as a fertilizer, as well as for medical uses. The company was founded in 2003 and is based in Chennai, India.

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: 515.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 515.05 is above the 20-day moving average (MA) of 505.92, below the 50-day MA of 576.46, and below the 200-day MA of 618.34, indicating a neutral trend. The MACD of -18.62 indicates Negative momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 81.91 is Negative, 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	₹71.84B	11.30	―	3.68%	-7.53%	42.74%
GSFC	68 Neutral	₹70.63B	10.57	―	2.80%	15.25%	26.49%
PRIVISCL	64 Neutral	₹131.00B	49.10	―	0.15%	24.25%	96.45%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
REFEX	60 Neutral	₹36.84B	21.91	―	0.19%	21.67%	25.86%
GUJALKALI	59 Neutral	₹37.27B	24,879.90	―	3.11%	10.35%	―
ACI	58 Neutral	₹64.56B	37.79	―	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.