Check Before You Invest : Archean Chemical Industries Ltd

Q: Which industry/sub-sector does Archean Chemical Industries Ltd belong to?

Archean Chemical Industries Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q: Is Archean Chemical Industries Ltd a good quality company?

Archean Chemical Industries Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Archean Chemical Industries Ltd undervalued or overvalued?

Archean Chemical Industries Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 41.71, Historic Median: 29.96. Price to Book, Current: 3.22, Historic Median: 4.17. Price to Sales, Current: 6.18, Historic Median: 5.97. EV to EBITDA, Current: 21.64, Historic Median: 15.81

Q: Is Archean Chemical Industries Ltd a good buy now?

Archean Chemical Industries Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Archean Chemical Industries Ltd?

Archean Chemical Industries Ltd revenue growth is -23.8% for FY-2025, which is below its 5-year CAGR of 10.76%, indicating slower growth.

Q: Gross Profit margin of Archean Chemical Industries Ltd?

Archean Chemical Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 35.8% for FY-2025, which is in line with its 5-year median of 35.8%, indicating stable margins.

Q: Operating Profit Margin of Archean Chemical Industries Ltd?

Archean Chemical Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 31.85% for FY-2025, which is below its 5-year median of 35.43% indicating decreasing margins.

Q: Net Profit Margin of Archean Chemical Industries Ltd?

Archean Chemical Industries Ltd Net Profit Margin is 18.24% for FY-2025, is in line with its 5-year median of 18.24%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 35.8, Historic Median: 35.8. Operating Profit Margin (%), Current: 31.85, Historic Median: 35.43. Net Profit Margin (%), Current: 18.24, Historic Median: 18.24

Q: Return on Asset of Archean Chemical Industries Ltd?

Archean Chemical Industries Ltd Return on Asset is 8.17%, which is below its 5-year historical median of 12.95%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Archean Chemical Industries Ltd?

Archean Chemical Industries Ltd Return on capital employed is 14.22% for FY-2025, which is below its 5-year historical median of 27.9%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : Archean Chemical Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Archean Chemical Industries Ltd belong to?

Archean Chemical Industries Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Archean Chemical Industries Ltd a good quality company?

Archean Chemical Industries Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Archean Chemical Industries Ltd undervalued or overvalued?

Archean Chemical Industries Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	41.71	29.96
Price to Book	3.22	4.17
Price to Sales	6.18	5.97
EV to EBITDA	21.64	15.81

Q.4 Is Archean Chemical Industries Ltd a good buy now?

Archean Chemical Industries Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Archean Chemical Industries Ltd?

Archean Chemical Industries Ltd revenue growth is -23.8% for FY-2025, which is below its 5-year CAGR of 10.76%, indicating slower growth.

Q.2 Gross Profit margin of Archean Chemical Industries Ltd?

Archean Chemical Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 35.8% for FY-2025, which is in line with its 5-year median of 35.8%, indicating stable margins.

Q.3 Operating Profit Margin of Archean Chemical Industries Ltd?

Archean Chemical Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 31.85% for FY-2025, which is below its 5-year median of 35.43% indicating decreasing margins.

Q.4 Net Profit Margin of Archean Chemical Industries Ltd?

Archean Chemical Industries Ltd Net Profit Margin is 18.24% for FY-2025, is in line with its 5-year median of 18.24%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	35.8	35.8
Operating Profit Margin (%)	31.85	35.43
Net Profit Margin (%)	18.24	18.24

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Archean Chemical Industries Ltd?

Archean Chemical Industries Ltd Return on Asset is 8.17%, which is below its 5-year historical median of 12.95%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Archean Chemical Industries Ltd?

Archean Chemical Industries Ltd Return on capital employed is 14.22% for FY-2025, which is below its 5-year historical median of 27.9%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Archean Chemical Industries Ltd?

Archean Chemical Industries Ltd Return on equity is 10.33% for FY-2025, which is below its 5-year historical median of 45.47%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Archean Chemical Industries Ltd?

Archean Chemical Industries Ltd Cash conversion cycle is 59 days, above its 5-year historical median of 28 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.45	0.68
ROE (%)	10.33	45.47
ROCE (%)	14.22	27.9
Cash Conversion Cycle	59 days	28 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Archean Chemical Industries Ltd?

Archean Chemical Industries Ltd Debt-to-Equity ratio is 0.03, which is lower the industry average of 0.13, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Archean Chemical Industries Ltd?

Archean Chemical Industries Ltd Debt to cash flow from operations is 0.31, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Archean Chemical Industries Ltd?

Q.1 Promoter shareholding and pledge status of Archean Chemical Industries Ltd?

Promoters hold 53.43% of the Archean Chemical Industries Ltd, with 17.26% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Archean Chemical Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Archean Chemical Industries Ltd vs industry peers?

Archean Chemical Industries Ltd revenue CAGR is 10.76%, compared to the industry median CAGR of 7.53%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-23.8	7.5
Gross Profit Growth (%)	-27.5	12.1
Operating Profit Growth (%)	-30.6	11.7
Net Profit Growth (%)	-42.6	9.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.45	0.93
ROE (%)	10.33	10.17
ROCE (%)	14.22	12.96
Cash Conversion Cycle (days)	58.89	62

Valuation & price assessment

Q.1 Stock return of Archean Chemical Industries Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of -1.32% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-1.3%	-16.5%

Q.2 Valuation ratios of Archean Chemical Industries Ltd vs historical?

The current P/E ratio of 41.71 is higher than its historical median of 29.96, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	41.71	29.96	28.17
Price to Book	3.22	4.17	2.22
Price to Sales	6.18	5.97	1.93
EV to EBITDA	21.64	15.81	14.20

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Check Before You Invest : Archean Chemical Industries Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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