AksharChem India Ltd. (AKSHARCHEM) AI Stock Analysis

• Market Cap: ₹1.83B
• Dividend Yield: 0.3%
• Average Volume (3M): 645.00
• Price to Earnings (P/E): 95.2
• Beta (1Y): 1.19
• Revenue Growth: 14.22%
• EPS Growth: N/A
• Country: IN
• Employees: 163
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -1.70
• Shares Outstanding: 8,033,099
• 10 Day Avg. Volume: 1,037
• 30 Day Avg. Volume: 645
• PEG Ratio: -0.29
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -18.27
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹273.00 ▲(13.49% Upside)

AksharChem India Ltd. has a moderate overall stock score driven by stable financial performance and technical indicators. However, high valuation metrics and profitability challenges weigh down the score. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

The company's ability to rebound with a 16.96% revenue growth in 2025 indicates resilience and potential for sustained market demand.

Gross Profit Margin

A strong gross profit margin of 27.6% suggests effective cost management and pricing power, supporting long-term profitability.

Equity Structure

A strong equity base with a 63.48% equity ratio provides financial stability and reduces reliance on debt, enhancing long-term resilience.

Negative Factors

Net Profit Margin

A low net profit margin of 1.38% indicates high costs or inefficiencies, which could hinder profitability and growth potential.

Free Cash Flow

Negative free cash flow suggests challenges in capital management, potentially impacting investment in growth and operational flexibility.

Return on Equity

A low return on equity of 1.81% indicates limited profitability on shareholders' investments, which may affect investor confidence and capital attraction.

AksharChem India Ltd. Business Overview & Revenue Model

Company Description

AksharChem (India) Limited manufactures and sells dyes and pigments in India. The company offers dye intermediates, including H-acid, vinyl sulphone, ortho anicidine vinyl sulphone, and sulpho para vinyl sulphone; reactive blue 21 and reactive black 5 dyes; green 7 and violet 23 pigments; and precipitated silica. It serves textile, printing ink, plastic, paint, leather, and tyre industries. AksharChem (India) Limited also exports its products to Europe, the Far East, South East Asia, China, the United States, and internationally. The company was formerly known as Audichem (India) Limited and changed its name to AksharChem (India) Limited in March 2003. AksharChem (India) Limited was incorporated in 1989 and is headquartered in Mehsana, India.

How the Company Makes Money

AksharChem India Ltd. generates revenue through multiple streams primarily derived from the sale of its chemical products to various industrial sectors. The company's revenue model is built on direct sales to manufacturers in industries such as textiles, where it supplies dyes and pigments, and coatings, where it provides specialty chemicals that enhance product performance. Additionally, AKSHARCHEM may engage in long-term contracts or partnerships with key clients, ensuring steady income from recurring orders. Factors contributing to its earnings include the demand for sustainable and high-quality chemical solutions, strategic pricing, and a focus on research and development to create innovative products that meet specific industry needs.

AksharChem India Ltd. Financial Statement Overview

Summary

AksharChem India Ltd. shows resilience with a strong gross profit margin and stable equity structure. However, low net profit margins and negative free cash flow indicate profitability challenges and the need for better cash flow management.

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	3.57B	3.46B	3.02B	3.35B	3.68B	2.46B
Gross Profit	1.36B	955.94M	1.18B	217.93M	435.60M	207.26M
EBITDA	253.18M	248.34M	19.48M	155.64M	317.97M	250.36M
Net Income	43.30M	47.70M	-186.77M	-9.42M	159.15M	125.01M
Balance Sheet
Total Assets	0.00	4.15B	3.81B	3.65B	4.06B	3.55B
Cash, Cash Equivalents and Short-Term Investments	17.94M	1.44M	1.60M	17.79M	3.82M	16.00M
Total Debt	0.00	667.67M	518.21M	246.25M	502.73M	147.89M
Total Liabilities	-2.64B	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: Negative
• Last Price: 240.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 240.55 is above the 20-day moving average (MA) of 239.22, below the 50-day MA of 248.20, and below the 200-day MA of 257.46, indicating a bearish trend. The MACD of -6.75 indicates Positive momentum. The RSI at 33.97 is Neutral, neither overbought nor oversold. The STOCH value of 21.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AKSHARCHEM.

AksharChem India Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MHLXMIRU	73 Outperform	₹2.08B	10.24	―	―	-26.45%	57.89%
OCCL	72 Outperform	₹1.29B	12.32	―	10.99%	-76.65%	-76.77%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KESORAMIND	60 Neutral	₹3.09B	0.06	―	―	-91.62%	―
AKSHARCHEM	54 Neutral	₹1.83B	95.16	―	0.30%	14.22%	―
SADHNANIQ	51 Neutral	₹2.19B	-10.42	―	1.25%	-37.44%	-950.73%