Archean Chemical Industries Ltd - Stock Valuation and Financial Performance

BSE: 543657 | NSE: ACI | Chemicals | Small Cap

Archean Chem Inds Share Price

694.40 40.40 6.18%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on Archean Chem Inds

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

Archean Chemical Industries stock performance -

mw4me loader
P/E Ratio (SA):
21.45
Market Cap:
8,568.7 Cr.
52-wk low:
495
52-wk high:
838.2

Is Archean Chemical Industries Ltd an attractive stock to invest in?

1. Is Archean Chemical Industries Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Archean Chemical Industries Ltd is a average quality company.

2. Is Archean Chemical Industries Ltd undervalued or overvalued?

The key valuation ratios of Archean Chemical Industries Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Archean Chemical Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Archean Chemical Industries Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Archean Chem Inds:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Archean Chemical Industries Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 7.9%-1.1%-0.2%-1.3%13.4%7.3%16.9%29.4%33.7%-
Value Creation
Index
-0.4-1.1-1.0NA0.0-0.50.31.11.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2253412884395666087411,1301,4411,429
Sales YoY Gr.-51.3%-15.5%52.6%28.9%7.5%21.8%52.6%27.5%-
Adj EPS 12.1-17.3-15.2-16.73.8-2.56.319.429.632.4
YoY Gr.--243.3%NANANA-167.2%NA210.4%52.4%-
BVPS (₹) 40.122.88.2-5.64.50.87.727.3115.8135.8
Adj Net
Profit
60.4-86.6-75.7-83.436.5-24.460.2187364400
Cash Flow from Ops. 11727011839.1312148119327498-
Debt/CF from Ops. 8.63.78.224.82.45.87.22.60-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales NA26.9%33.3%27.5%
Adj EPS NANANA52.4%
BVPSNANA427.3%324.6%
Share Price - - - 19.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
30.1-55-97.8-1274.9465.2-95.7147.611142.925.7
Op. Profit
Mgn %
40.530.924.318.912.22735.441.34440
Net Profit
Mgn %
26.9-25.4-26.3-196.5-48.116.525.228
Debt to
Equity
58.723.8-34.917.4112.611.63.20-
Working Cap
Days
0209229168130115111989688
Cash Conv.
Cycle
045663-3-17-18152866

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 33.32%

Return on Equity has declined versus last 3 years average to 25.70%

Net Profit has been subdued in last 3 years 0.00%

Sales growth is not so good in last 4 quarters at 0.09%

Latest Financials - Archean Chemical Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 32.4 32.2
TTM Sales (₹ Cr.) 1,429 1,429
BVPS (₹.) 135.8 135.6
Reserves (₹ Cr.) 1,651 1,649
P/BV 5.11 5.12
PE 21.45 21.54
From the Market
52 Week Low / High (₹) 495.00 / 838.20
All Time Low / High (₹) 440.05 / 838.20
Market Cap (₹ Cr.) 8,569
Equity (₹ Cr.) 24.7
Face Value (₹) 2
Industry PE 49.3

Management X-Ray of Archean Chem Inds:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.004.554.55
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Archean Chem Inds

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales2253412884395666087411,1301,441
Operating Expenses 134235218356497460479663807
Manufacturing Costs60724178748289148184
Material Costs-78-1429499609393
Employee Cost 162619263034353872
Other Costs 136152129202297343345438548
Operating Profit 91105708369148262467634
Operating Profit Margin (%) 40.4%30.9%24.3%18.9%12.2%24.3%35.4%41.3%44.0%
Other Income 314678141344
Interest 5110610610211412213016297
Depreciation 367281734752556769
Exceptional Items 00001140000
Profit Before Tax 7-72-113-8529-1790251513
Tax -5314-40-6-12182463129
Profit After Tax 60-87-73-7941-3667189384
PAT Margin (%) 26.8%-25.4%-25.5%-18.0%7.3%-5.9%9.0%16.7%26.6%
Adjusted EPS (₹)12.1-17.3-14.7-15.84.3-3.76.919.631.2
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%8%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 20111441-28438742631,425
Share Capital 101010101919191925
Reserves 19110431-3824-12552431,400
Minority Interest000000000
Debt80569187285875485485684321
Long Term Debt7485898177927418488468431
Short Term Debt5710255661369020
Trade Payables488411214010516711211296
Others Liabilities 323448211208245324339314235
Total Liabilities 1,3761,3371,2371,1781,1471,3531,3811,5321,777

Fixed Assets

Gross Block8181,1321,1931,0131,0311,0871,2661,3771,456
Accumulated Depreciation4611820073114170224291359
Net Fixed Assets7721,0139949409179171,0421,0861,097
CWIP 32566009158191733
Investments 00000474116215
Inventories981131271136399111121168
Trade Receivables25452726674468153118
Cash Equivalents 706961134825325432
Others Assets8731288744636885113
Total Assets 1,3761,3371,2371,1781,1471,3531,3811,5321,777

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 11727011839312148119327498
PBT 7-72-113-8529-1790251513
Adjustment 12517518518360184197228161
Changes in Working Capital -1016746-59224-19-168-153-156
Tax Paid -5000-1000-21
Cash Flow From Investing Activity -117-5580-25-197-2-128-288
Capex -119-554-6-32-152-10-97-96
Net Investments 00000-467-15-196
Others 2046711-164
Cash Flow From Financing Activity -122-216-133-87-25226-110-224-212
Net Proceeds from Shares 00000000789
Net Proceeds from Borrowing -87-1590000000
Interest Paid -92-104-107-67-112-83-100-198-163
Dividend Paid 000000000
Others 5746-26-21-141109-10-26-838
Net Cash Flow -122-1-8-4835-237-24-2
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)30.06-55.04-94.58N/A523.94-139.72163.22112.0545.47
ROCE (%)4.82.95-0.68N/A16.4412.5624.5840.547.63
Asset Turnover Ratio0.160.260.230.370.490.490.540.780.87
PAT to CFO Conversion(x)1.95N/AN/AN/A7.61N/A1.781.731.3
Working Capital Days
Receivable Days403744223033283634
Inventory Days159111148995748523737
Payable Days-227-1,7491,24393246605,7231,0400

Archean Chemical Industries Ltd Stock News

Archean Chemical Industries Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Archean Chem Inds on 12-Apr-2024 16:59 is ₹694.4.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 16:59 the market cap of Archean Chem Inds stood at ₹8,568.7.
The latest P/E ratio of Archean Chem Inds as of 12-Apr-2024 16:59 is 21.45.
The latest P/B ratio of Archean Chem Inds as of 12-Apr-2024 16:59 is 5.11.
The 52-week high of Archean Chem Inds is ₹838.2 and the 52-week low is ₹495.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Archean Chem Inds is ₹1,429 ( Cr.) .

About Archean Chemical Industries Ltd

The company was originally formed as a partnership firm under the name of “Archean Chemical Industries” at Chennai, Tamil Nadu, India pursuant to a partnership deed dated November 20, 2003 which was registered under the Indian Partnership Act, 1932 with the Registrar of Firms, Chennai, Tamil Nadu, India on November 25, 2003. Subsequently, the partnership firm was converted into private limited company under the Companies Act, 1956 with the name “Archean Chemical Industries Private Limited” and a certificate of incorporation dated July 14, 2009 was issued by the Registrar of Companies, Tamil Nadu at Chennai. Consequent upon conversion into a public limited company under the Companies Act, 2013 pursuant to a special resolution passed by the Shareholders on November 15, 2021 and fresh certificate of incorporation dated December 15, 2021 issued by the Registrar of Companies, Tamil Nadu at Chennai, the name of the Company was changed to “Archean Chemical Industries Limited”.

Archean Chemical Industries is a leading specialty marine chemical manufacturer in India and focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. It produces its products from its brine reserves in the Rann of Kutch, located on the coast of Gujarat, and it manufactures its products at its facility near Hajipir in Gujarat.

Its bromine is used as key initial level materials, which have applications in the pharmaceuticals, agrochemicals, water treatment, flame retardant, additives, oil & gas and energy storage batteries. Industrial salt is an important raw material used in chemical industry for production of sodium carbonate (soda ash), caustic soda, hydrochloric acid, chlorine, bleaching powders, chlorates, sodium sulphate (salt cake) and sodium metal. Sulphate of potash is used as a fertilizer and also has medical uses.

The company’s marine chemicals business is predominately conducted on a business-to-business basis both in India and internationally. The key geographies to which it exports its products include China, Japan, South Korea, Qatar, Belgium and the Netherlands. Some of its major customers include Sojitz Corporation, which is also a shareholder in the Company, Shandong Tianyi Chemical Corporation, Unibrom Corporation, Wanhau Chemicals and Qatar Vinyl Company. It has an integrated production facility for its bromine, industrial salt, and sulphate of potash operations, located at Hajipir, Gujarat, which is located on the northern edge of the Rann of Kutch brine fields. The company’s manufacturing facility is located in close proximity to the captive Jakhau Jetty and Mundra Port, where it transport its products to its customers internationally.

Business area of the company

The company is the leading speciality marine chemical manufacturer in India and is focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world.

Key Awards, Accreditations and Recognition

  • 2016: Received certification of quality management system conforming to the ISO 9001:2015 standards with respect to manufacturing, trading, exporting of industrial salt and marine based salt chemicals.
  • 2017: Accredited three star export house by Director General of Foreign Trade, Ministry of Commerce and Industry, Government of India.
  • 2022: Became member-signatory to Responsible CARE – Indian Chemical Council.

Major events and milestones

  • 2011: Strategic investment of approximately Rs 22.50 crore by Sojitz Corporation.
  • 2013: Commenced industrial salt operations.
  • 2013: Commenced exports to Japan and South Korea.
  • 2014: Commenced production of bromine.
  • 2014: Commenced exports to China.
  • 2015: Commissioned production of sulphate of potash.
  • 2015: Commenced exports to Belgium.
  • 2018: Strategic investment by India Resurgence Fund, a joint venture between Piramal Enterprises Limited and Bain Capital Credit, and issued listed and redeemable NCDs aggregating to Rs 840 crore. The NCDs issued by the Company are listed on the wholesale debt segment of the BSE Limited.
  • 2021: Expansion and increase of bromine installed capacity to 28,500 MT.
  • 2021: Commenced exports to Qatar. 
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