ICICI Securities Limited recently issued Buy Call on Archean Chemical Industries, along with a new Target Price for the company. Now, let’s examine the research reports and explore their overviews.
Archean Chemical Industries Limited is a leading specialty chemicals manufacturing company based in India with a wide presence in the global markets.
​Reliably delivering quality products has been our mission since our inception. We are trusted partners of numerous global customers continuous commitment to excellence has helped build our reputation as one of the best in the industry.
Archean Chemical Industries Share Price
First of all, let’s take a look at the current share price of Archean Chemical Industries. To visualize these changes, we can refer to the Archean Chemical Industries Share chart which displays the historical share prices, indicating the ups and downs over time.
Research Report
ICICI Securities Limited’s Report Overview
Archean Chemical Industries (ACI) reported a significant growth in its Q4FY23 EBITDA, which increased by 21.5% year-on-year to reach Rs1.9 billion. This positive performance can be attributed to strong pricing in the bromine and salt segments. However, the company has experienced challenges in terms of bromine export volumes and realizations, which are anticipated to improve in the coming two quarters. It is expected that bromine realizations will decline to US$4/kg from approximately US$4.7 in FY23.
On the other hand, the salt segment has performed better than expected in terms of pricing, which is projected to remain stable in FY24, accompanied by strong volume growth. ACI has plans to achieve a 5 million tons per annum (mtpa) salt capacity by FY25, with the entire production expected to be sold within the same year. Additionally, the company is set to bill 8.8 thousand tonnes equivalent (kte) of SOP production in FY23 and foresees higher production levels in FY24.
ACI aims to commence bromine derivative production by the end of FY24, with a capital expenditure of Rs2.5 billion and a potential asset turnover of 3x. Consequently, EPS estimates have been revised downward by 29% for FY24E, primarily due to lower bromine revenues, and by 8% for FY25. The target price has been adjusted to Rs750 (from Rs820), while the FY25E P/E multiple remains unchanged at 13x. Despite the challenges and risks, including weak demand for bromine and a sharp decline in salt prices, the recommendation for investors is to maintain a BUY stance.
ICICI Securities Limited Buy Call: Archean Chemical Industries
Archean Chemical Industries’ current market price is Rs 547. Recently, ICICI Securities Limited recently issued Buy Call on Archean Chemical Industries with a new Target Price of Rs 1,038.
| Company | Archean Chemical Industries |
|---|---|
| AUTHOR | ICICI Securities Limited |
| DATE | 30 May 2023 |
| Current Price | Rs 547 |
| TARGET | Rs 750 |
| Type | Buy |
| Report |
Shareholding Pattern
Here’s a table summarizing the ownership structure of the company.
| Shareholding Pattern | Dec ’22 (%) | Mar ’23 (%) |
|---|---|---|
| Promoters | 53.6 | 53.6 |
| Institutional Investors | 33.5 | 35.7 |
| – Mutual Funds and Others | 21.7 | 15.0 |
| – FIs and Banks | 4.5 | 12.8 |
| – Insurance | 0.9 | 2.5 |
| – FIIs | 6.4 | 5.4 |
| Others | 12.9 | 10.7 |
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