AksharChem India Ltd. (AKSHARCHEM) AI Stock Analysis

• Market Cap: ₹2.21B
• Dividend Yield: 0.18%
• Average Volume (3M): 1.12K
• Price to Earnings (P/E): 51.0
• Beta (1Y): 1.32
• Revenue Growth: 12.98%
• EPS Growth: N/A
• Country: IN
• Employees: 163
• Sector: Basic Materials
• Sector Strength: 56
• Industry: Chemicals - Specialty
• EPS (TTM): 0.89
• Shares Outstanding: 8,033,099
• 10 Day Avg. Volume: 838
• 30 Day Avg. Volume: 1,116
• 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: ₹269.00
• Price Target Upside: -0.94% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: ₹269.00 ▼(-0.94% Downside)

The overall stock score is primarily influenced by financial performance and technical analysis. The company's strong gross profit margin and stable equity structure are offset by profitability challenges and negative cash flow trends. Technical indicators suggest weak momentum, and the high P/E ratio indicates potential overvaluation.

AksharChem India Ltd. Business Overview & Revenue Model

Company Description

AksharChem India Ltd. (AKSHARCHEM) is a leading manufacturer and exporter of dyes and pigments based in India. Established in 1989, the company primarily operates in the chemical sector, specializing in the production of vinyl sulphone, H-acid, and other dye intermediates. AksharChem serves a diverse clientele across various industries, including textiles, printing, and plastics, with high-quality products that meet international standards.

How the Company Makes Money

AksharChem India Ltd. generates revenue primarily through the manufacturing and sale of dyes and dye intermediates. The company's key revenue streams include the production of vinyl sulphone and H-acid, which are essential components in the textile and printing industries. Additionally, AksharChem exports a significant portion of its products, contributing to its earnings and establishing its presence in international markets. The company benefits from strategic partnerships and a robust distribution network that enhances its market reach and customer base. Factors such as competitive pricing, consistent product quality, and adherence to environmental standards also play a crucial role in sustaining its revenue growth.

AksharChem India Ltd. Financial Statement Overview

Summary

AksharChem India Ltd. shows a strong gross profit margin and a stable equity base. However, it faces challenges with low net profit margins and negative free cash flow, indicating profitability and cash management issues.

Income Statement

AksharChem India Ltd. exhibits fluctuating performance with a recent revenue growth of 16.96% in 2025 after a decline in 2024. The gross profit margin is strong at 27.6%, although the net profit margin is quite low at 1.38%, indicating high costs or inefficiencies. EBIT and EBITDA margins also show volatility, reflecting operational challenges.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.25, suggesting a balanced approach to leveraging. Return on equity is relatively low at 1.81%, indicating limited profitability on shareholders' investments. However, the equity ratio of 63.48% signals a strong equity base, contributing to financial stability.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow in recent years. The operating cash flow to net income ratio is robust at 7.3 times, suggesting effective cash generation from operations despite net income volatility. The negative free cash flow to net income ratio highlights the need for improved capital management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.46B	3.46B	3.02B	3.35B	3.68B	2.46B
Gross Profit	754.75M	955.94M	123.94M	766.36M	1.27B	982.60M
EBITDA	251.63M	248.34M	19.48M	155.64M	317.97M	250.36M
Net Income	47.70M	47.70M	-186.77M	-9.42M	159.15M	125.01M
Balance Sheet
Total Assets	4.15B	4.15B	3.81B	3.65B	4.06B	3.55B
Cash, Cash Equivalents and Short-Term Investments	17.94M	17.94M	1.60M	17.79M	3.82M	16.00M
Total Debt	667.67M	667.67M	518.21M	246.25M	502.73M	147.89M
Total Liabilities	1.52B	1.52B	1.21B	868.84M	1.26B	767.77M
Stockholders Equity	2.64B	2.64B	2.59B	2.78B	2.80B	2.79B
Cash Flow
Free Cash Flow	0.00	-93.80M	-234.00M	290.18M	-206.19M	-22.64M
Operating Cash Flow	0.00	348.23M	-65.55M	379.21M	43.06M	492.74M
Investing Cash Flow	0.00	-440.29M	-164.03M	-84.03M	-237.84M	-493.55M
Financing Cash Flow	0.00	91.91M	229.71M	-295.11M	181.78M	13.06M

AksharChem India Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 271.55
• 50DMA: Negative
• 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:AKSHARCHEM, the sentiment is Neutral. The current price of 271.55 is below the 20-day moving average (MA) of 284.29, below the 50-day MA of 278.44, and above the 200-day MA of 265.55, indicating a neutral trend. The MACD of -3.59 indicates Positive momentum. The RSI at 46.75 is Neutral, neither overbought nor oversold. The STOCH value of 55.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:AKSHARCHEM.

AksharChem India Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OCCL	68 Neutral	₹1.83B	17.51		7.63%	-76.65%	-76.77%
MHLXMIRU	68 Neutral	₹2.41B	13.26		―	-48.17%	47.16%
SADHNANIQ	54 Neutral	₹2.15B	45.12		2.26%	-15.63%	0.14%
KESORAMIND	52 Neutral	₹1.68B	0.03		―	-93.47%	―
AKSHARCHEM	48 Neutral	₹2.21B	51.02		0.18%	12.98%	―
Sector *	44 Neutral	AU$1.54B	-7.54	-18.84%	4.39%	-2.92%	-37.74%