ScoreWhy is Archean Chemical Industries Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of -6.76% and Operating profit at -23.20% over the last 5 years
2
With a fall in Operating Profit of -20.1%, the company declared Very Negative results in Sep 25
- The company has declared negative results for the last 7 consecutive quarters
- OPERATING CF(Y) Lowest at Rs 176.23 Cr
- INTEREST(9M) At Rs 11.19 cr has Grown at 43.09%
- PAT(Q) At Rs 29.09 cr has Fallen at -37.2% (vs previous 4Q average)
3
With ROE of 9, it has a Very Expensive valuation with a 3.3 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -27.32%, its profits have fallen by -31%
4
Below par performance in long term as well as near term
- Along with generating -27.32% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Archean Chemical for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Archean Chemical
-17.57%
-0.69
39.79%
Sensex
-3.02%
0.44
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-6.92%
EBIT Growth (5y)
-37.00%
EBIT to Interest (avg)
20.01
Debt to EBITDA (avg)
0.63
Net Debt to Equity (avg)
0.21
Sales to Capital Employed (avg)
0.66
Tax Ratio
28.27%
Dividend Payout Ratio
28.88%
Pledged Shares
29.16%
Institutional Holding
35.18%
ROCE (avg)
23.61%
ROE (avg)
15.29%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
66
Industry P/E
44
Price to Book Value
3.31
EV to EBIT
50.43
EV to EBITDA
29.82
EV to Capital Employed
2.91
EV to Sales
6.09
PEG Ratio
NA
Dividend Yield
0.48%
ROCE (Latest)
6.24%
ROE (Latest)
5.50%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
DPR(Y)
Highest at 28.88%
NET SALES(Q)
Highest at Rs 327.20 cr
PBT LESS OI(Q)
At Rs 38.61 cr has Grown at 28.5% (vs previous 4Q average
-22What is not working for the Company
OPERATING CF(Y)
Lowest at Rs 139.63 Cr
PAT(Latest six months)
At Rs 44.10 cr has Grown at -52.95%
INTEREST(Latest six months)
At Rs 15.88 cr has Grown at 59.76%
ROCE(HY)
Lowest at 7.20%
DEBT-EQUITY RATIO(HY)
Highest at 0.24 times
INVENTORY TURNOVER RATIO(HY)
Lowest at 5.03 times
Loading Valuation Snapshot...
Here's what is working for Archean Chemical
Dividend Payout Ratio (DPR) - Annually
Highest at 28.88% and Grown
each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Net Sales - Quarterly
Highest at Rs 327.20 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 327.20 cr has Grown at 21.1% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 270.26 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 38.61 cr has Grown at 28.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 30.04 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for Archean Chemical
Profit After Tax (PAT) - Latest six months
At Rs 44.10 cr has Grown at -52.95%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Latest six months
At Rs 15.88 cr has Grown at 59.76%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Cash Flow - Annually
Lowest at Rs 139.63 Cr and Fallen
each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (Rs Cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.24 times and Grown
each half year in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio- Half Yearly
Lowest at 5.03 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
