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 10-year financial track record.

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

Archean Chemical Industries Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

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

Archean Chemical Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

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 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.3 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.4 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.5 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	0.45	0.68
ROE	10.33	45.47
ROCE	14.22	27.9
Cash Conversion Cycle	59 days	28 days

Q.6 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.7 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.8 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 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

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 with the industry average of 0.26, 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

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)

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 9.62%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-23.8	9.6
Gross Profit Growth	-27.5	14.3
Operating Profit Growth	-30.6	12
Net Profit Growth	-42.6	12.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.45	0.97
ROE	10.33	10.68
ROCE	14.22	13.26
Cash Conversion Cycle (days)	58.89	63

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 3.68% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	3.7%	0.6%

Q.3 Valuation ratios of Archean Chemical Industries Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	41.02	32.34	27.93
Price to Book	3.81	4.41	2.22
Price to Sales	7.01	6.43	1.93
EV to EBITDA	21.92	17.21	14.18

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