AksharChem India Ltd. (AKSHARCHEM) AI Stock Analysis

• Market Cap: ₹1.37B
• Dividend Yield: 0.3%
• Average Volume (3M): 645.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: 14.22%
• EPS Growth: N/A
• Country: IN
• Employees: 163
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -5.75
• 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: 50 Neutral
• Price Target: ₹179.00 ▼(-25.59% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

Overall score is held back most by very weak technical momentum (price below all major moving averages, negative MACD, and extremely oversold RSI/Stoch). Financial performance is mixed with balance-sheet stability but low profitability and negative free cash flow. Valuation provides limited support due to a negative P/E and low dividend yield.

Positive Factors

High gross margin (27.6%)

A 27.6% gross margin in specialty chemicals indicates the company captures meaningful spread over direct production costs. This structural margin supports resilience to raw-material volatility, funds reinvestment in manufacturing efficiency, and underpins sustainable earnings potential if product mix and pricing hold.

Strong equity base & low leverage

A high equity ratio (63.48%) and modest debt-to-equity (0.25) create a conservative capital structure. This durability reduces refinancing and liquidity risk in cyclic chemical markets, preserves strategic optionality for capex or acquisitions, and supports financial stability over downturns.

Strong operating cash conversion

An operating cash flow to net income ratio of 7.3x shows the core business converts accounting profit into actual cash effectively. Durable operational cash generation helps fund working capital and routine capex, lowering reliance on external financing for day-to-day operations.

Negative Factors

Very low net margin (1.38%)

A net margin of only 1.38% implies limited residual earnings after all costs and taxes. Persistently low net profitability constrains retained earnings, limits ability to invest or increase shareholder returns, and leaves the firm highly sensitive to cost inflation or pricing pressure.

Negative free cash flow

Reported negative free cash flow in recent years means capital expenditure and working capital needs exceed operating cash after investments. Over time this forces external financing or asset sales, constraining organic growth and increasing funding and execution risk.

Earnings and margin volatility (EPS -47%)

A roughly 47% decline in EPS combined with volatile EBIT/EBITDA margins indicates inconsistent profitability. Such variability undermines forecasting, raises execution risk in cyclical specialty chemicals, and can impede long-term planning for capex, pricing, and customer contracts.

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 primarily makes money by manufacturing and selling dyes and dye intermediates (specialty chemical products) to business customers. Revenue is generated from (1) domestic sales to Indian industrial customers and (2) export sales to overseas customers that use these intermediates in the production of dyes and related colorant applications. Earnings are driven by product volumes shipped and realized selling prices, which depend on demand from downstream dye/colorant markets and the company’s ability to operate its manufacturing facilities efficiently. Specific details on customer concentration, long-term supply agreements, or named strategic partnerships are null.

AksharChem India Ltd. Financial Statement Overview

Summary

Financials show stability but weak profitability: strong gross margin (27.6%) and a solid equity base (equity ratio 63.48%) with modest leverage (debt-to-equity 0.25). However, net margin is very low (1.38%), ROE is low (1.81%), EBIT/EBITDA margins are volatile, and free cash flow has been negative in recent years.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.68B	3.46B	3.02B	3.35B	3.68B	2.46B
Gross Profit	1.35B	955.94M	1.18B	217.93M	435.60M	207.26M
EBITDA	231.70M	248.34M	19.48M	155.64M	317.97M	250.36M
Net Income	19.20M	47.70M	-186.77M	-9.42M	159.15M	125.01M
Balance Sheet
Total Assets	4.27B	4.15B	3.81B	3.65B	4.06B	3.55B
Cash, Cash Equivalents and Short-Term Investments	18.77M	1.44M	1.60M	17.79M	3.82M	16.00M
Total Debt	745.59M	667.67M	518.21M	246.25M	502.73M	147.89M
Total Liabilities	1.65B	1.52B	1.21B	868.84M	1.26B	767.77M
Stockholders Equity	2.62B	2.64B	2.59B	2.78B	2.80B	2.79B
Cash Flow
Free Cash Flow	-45.12M	-93.80M	-234.00M	290.18M	-206.19M	-22.64M
Operating Cash Flow	107.71M	348.23M	-65.55M	379.21M	43.06M	492.74M
Investing Cash Flow	-152.02M	-440.29M	-164.03M	-84.03M	-237.84M	-493.55M
Financing Cash Flow	44.04M	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: Positive
• STOCH: Positive

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 205.37, above the 50-day MA of 218.62, and below the 200-day MA of 254.91, indicating a bearish trend. The MACD of -13.59 indicates Positive momentum. The RSI at 26.29 is Positive, neither overbought nor oversold. The STOCH value of 5.59 is Positive, 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
OCCL	67 Neutral	₹946.56M	18.71	―	10.99%	-76.65%	-76.77%
SADHNANIQ	63 Neutral	₹5.28B	-2.39	―	1.25%	-37.44%	-950.73%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MHLXMIRU	61 Neutral	₹1.74B	9.04	―	―	-26.45%	57.89%
KESORAMIND	52 Neutral	₹2.33B	17.07	―	―	-91.62%	―
AKSHARCHEM	50 Neutral	₹1.37B	-10.48	―	0.30%	14.22%	―