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Last Updated on: 23 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 543657 | NSE: ACI

Fundamental Analysis of Archean Chemical Industries Ltd

Basic Stock Data

Last Updated: April 23, 2024, 11:26 am

Market Cap 8,438 Cr.
Current Price 685
High / Low838/494
Stock P/E21.1
Book Value 127
Dividend Yield0.37 %
ROCE45.6 %
ROE44.9 %
Face Value 2.00

Data Source: screener.in

Competitors of Archean Chemical Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Alchemist Corporation Ltd 7.81 Cr. 15.919.4/10.7 31.20.00 %1.15 %1.16 % 10.0
A-1 Acid Ltd 412 Cr. 359440/295290 40.70.42 %9.79 %7.63 % 10.0
Advance Petrochemicals Ltd 19.3 Cr. 214439/108 39.70.00 %20.4 %30.9 % 10.0
Sree Rayalaseema Hi-Strength Hypo Ltd 939 Cr. 546815/4536.97 4790.73 %26.4 %21.6 % 10.0
Alufluoride Ltd 400 Cr. 511587/31323.8 99.20.39 %23.6 %22.1 % 10.0
Industry Average355.62 Cr329.1864.15137.960.31%16.27%16.68%10.00

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales250307373400293365382343290413
Expenses146190212239175205188208195267
Operating Profit10411716016111916019413596146
OPM %42%38%43%40%40%44%51%39%33%35%
Other Income86491989111210
Interest4241393935193322
Depreciation17171718171717171718
Profit before tax53661071138613118212588136
Tax %26%26%24%25%26%25%25%25%24%25%
Net Profit3949828564981379466102
EPS in Rs20.445.098.508.796.637.9911.127.655.398.28

Last Updated: April 10, 2024, 4:43 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 6, 2024, 1:42 pm

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4395666087411,1301,4411,429
Expenses356497460478663807858
Operating Profit8369148262467634571
OPM %19%12%24%35%41%44%40%
Other Income6121814134441
Interest1021141221301629711
Depreciation73475255676970
Profit before tax-8529-1790251513531
Tax %7%-41%-105%26%25%25%
Net Profit-7941-3667189384400
EPS in Rs-79.1621.31-18.5034.5619.5831.1832.44
Dividend Payout %0%0%0%0%0%8%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)151.90%-187.80%286.11%182.09%103.17%
Change in YoY Net Profit Growth (%)0.00%-339.70%473.92%-104.02%-78.91%

Growth

Compounded Sales Growth
10 Years:%
5 Years:27%
3 Years:33%
TTM:0%
Compounded Profit Growth
10 Years:%
5 Years:47%
3 Years:133%
TTM:22%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:25%
Return on Equity
10 Years:%
5 Years:48%
3 Years:60%
Last Year:45%

Last Updated: April 16, 2024, 6:23 pm

Balance Sheet

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital10191919192525
Reserves-3824-12552431,4081,545
Borrowings9687548549048976964
Other Liabilities316439568457372254249
Total Liabilities1,2561,2371,4301,4341,5321,7561,883
Fixed Assets9409148821,0421,0861,0971,082
CWIP0919319173348
Investments00474116215334
Other Assets316314308332412410420
Total Assets1,2561,2371,4301,4341,5321,7561,883

Reserves and Borrowings Chart

Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 39312148119327498
Cash from Investing Activity 0-25-197-2-128-288
Cash from Financing Activity -87-25226-110-224-212
Net Cash Flow-4835-237-24-2

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-885.00-685.00-706.00-642.00-430.00565.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days224327344930
Inventory Days830238999
Days Payable1,0353981,689
Cash Conversion Cycle-183-116-663344930
Working Capital Days-709-34315250
ROCE %3%13%24%39%46%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters53.60%53.60%53.60%53.60%53.46%
FIIs6.03%5.47%4.06%2.92%4.15%
DIIs29.80%30.25%30.78%30.38%28.69%
Public10.56%10.67%11.55%13.08%13.71%
No. of Shareholders49,60648,50762,54873,82192,571

Shareholding Pattern Chart

No. of Shareholders

Archean Chemical Industries Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Small Cap Fund44000001.12278.74
SBI Multicap Fund40944761.77259.39
DSP Small Cap Fund22973761.05145.54
Nippon India Small Cap Fund13733730.1987
HDFC Multi Cap Fund10951750.5969.38
SBI Magnum Childrens Benefit Fund - Investment Plan7000002.7644.35
Kotak Small Cap Fund - Regular Plan6369520.2840.35
Quant Small Cap Fund4960730.231.43
ITI Multi Cap Fund1591111.210.08
Motilal Oswal Multi Asset Fund500003.093.17

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22
FaceValue2.002.00
Basic EPS (Rs.)34.6618.22
Diluted EPS (Rs.)34.5918.22
Cash EPS (Rs.)36.6726.48
Book Value[Excl.RevalReserv]/Share (Rs.)116.2926.75
Book Value[Incl.RevalReserv]/Share (Rs.)116.2926.75
Revenue From Operations / Share (Rs.)117.11117.35
PBDIT / Share (Rs.)55.0449.78
PBIT / Share (Rs.)49.4642.84
PBT / Share (Rs.)41.5826.06
Net Profit / Share (Rs.)31.0919.54
NP After MI And SOA / Share (Rs.)31.0919.54
PBDIT Margin (%)46.9942.42
PBIT Margin (%)42.2336.50
PBT Margin (%)35.5022.20
Net Profit Margin (%)26.5416.64
NP After MI And SOA Margin (%)26.5416.64
Return on Networth / Equity (%)26.7373.02
Return on Capital Employeed (%)38.4430.43
Return On Assets (%)21.7912.29
Long Term Debt / Equity (X)0.003.27
Total Debt / Equity (X)0.013.28
Asset Turnover Ratio (%)0.870.00
Current Ratio (X)3.352.27
Quick Ratio (X)2.371.58
Inventory Turnover Ratio (X)0.310.00
Interest Coverage Ratio (X)6.992.97
Interest Coverage Ratio (Post Tax) (X)4.952.16
Enterprise Value (Cr.)7995.880.00
EV / Net Operating Revenue (X)5.550.00
EV / EBITDA (X)11.810.00
MarketCap / Net Operating Revenue (X)5.560.00
Price / BV (X)5.600.00
Price / Net Operating Revenue (X)5.560.00
EarningsYield0.040.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 1207.64

The stock is undervalued by 76.30% compared to the current price ₹685

Calculation basis:

  • Fair value = (P/E Ratio * (Return on Equity / 100) * Book Value) * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.83%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 6.33, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -141.50, which is a positive sign.
  4. The company has shown consistent growth in sales (336.71 cr) and profit (187.43 cr) over the years.
  1. The company has higher borrowings (644.29) compared to reserves (460.71), which may suggest financial risk.

Stock Analysis

  • Based on the analysis of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Archean Chemical Industries Ltd:
    1. Net Profit Margin: 26.54% (Higher values are generally favorable)
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 38.44% (Industry Average ROCE: 16.27%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 26.73% (Industry Average ROE: 16.68%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.95 (Higher values, preferably > 2, are recommended)
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.37 (Higher values, preferably > 1, are recommended)
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 21.1 (Industry average Stock P/E: 64.15)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.01 (Lower values, preferably < 1, are preferred)
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.
    Stock Rating: ★★★★★

About the Company

Archean Chemical Industries Ltd. is a Private Limited Listed company incorporated on 14/07/2009 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L24298TN2009PLC072270 and registration number is 072270. Currently company belongs to the Industry of Chemicals - Inorganic - Others. Company’s Total Operating Revenue is Rs. 1130.44 Cr. and Equity Capital is Rs. 19.27 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Inorganic - OthersNo. 2, North Crescent Road, Chennai (Madras) Tamil Nadu 600017info@archeanchemicals.com
http://www.archeanchemicals.com
Management
NamePosition Held
Mr. Ranjit PendurthiManaging Director
Mr. Ravi PendurthiNon Independent Director
Mr. Subrahmanyam MeenakshisundaramNon Independent Director
Ms. Padma ChandrasekaranIndependent Director
Mr. Chittoor Ghatambu SethuramIndependent Director
Mr. Kandheri Munaswami MohandassIndependent Director

Archean Chemical Industries Ltd. Share Price Update

Share PriceValue
Today₹685.00
Previous Day₹693.80

FAQ

What is the latest fair value of Archean Chemical Industries Ltd?

The latest fair value of Archean Chemical Industries Ltd is ₹1207.64.

What is the Market Cap of Archean Chemical Industries Ltd?

The Market Cap of Archean Chemical Industries Ltd is 8,438 Cr..

What is the current Stock Price of Archean Chemical Industries Ltd as on 23 April 2024?

The current stock price of Archean Chemical Industries Ltd as on 23 April 2024 is 685.

What is the High / Low of Archean Chemical Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Archean Chemical Industries Ltd stocks is ₹838/494.

What is the Stock P/E of Archean Chemical Industries Ltd?

The Stock P/E of Archean Chemical Industries Ltd is 21.1.

What is the Book Value of Archean Chemical Industries Ltd?

The Book Value of Archean Chemical Industries Ltd is 127.

What is the Dividend Yield of Archean Chemical Industries Ltd?

The Dividend Yield of Archean Chemical Industries Ltd is 0.37 %.

What is the ROCE of Archean Chemical Industries Ltd?

The ROCE of Archean Chemical Industries Ltd is 45.6 %.

What is the ROE of Archean Chemical Industries Ltd?

The ROE of Archean Chemical Industries Ltd is 44.9 %.

What is the Face Value of Archean Chemical Industries Ltd?

The Face Value of Archean Chemical Industries Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Archean Chemical Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE