Buy Archean Chemical Ind: IIFL Securities's Target Price Rs 755
IIFL Securities has issued a buy call on Archean Chemical Industries with a target price of Rs 755, implying an upside potential of approximately 4.2% from the current market price of Rs 724.4. The brokerage firm is bullish on the company due to its strong financial performance, robust demand for its products in the paints, adhesives, and construction industries, and capacity expansion plans. Archean Chemical Industries is expected to continue benefiting from the growth in the housing and infrastructure sectors, which should drive demand for its products.
About Archean Chemical Ind:
Archean Chemical Industries is a leading Indian manufacturer of specialty chemicals. Listed on the National Stock Exchange (NSE), the company operates in the fields of crop protection, pharmaceutical, and animal nutrition. Known for its research and development capabilities, Archean Chemical has a diversified product portfolio, including intermediates for herbicides, fungicides, and antibiotics. The company exports its products to over 30 countries globally. It has a strong presence in the Indian market and is also expanding its international footprint. Archean Chemical is committed to sustainable practices and has a focus on reducing its environmental impact.
52 Week Price Trend:
At its current market price of Rs 724.4, Archean Chemical Industries Limited (ACI) is trading significantly below its 52-week high of Rs 834.25, but above its 52-week low of Rs 494.15. This suggests that the stock has witnessed a notable decline from its recent highs but has also recovered from its lows. The company's financial performance, industry trends, and overall market sentiment will influence the future direction of ACI's stock price.
Stratzy's MOST Analysis:
Stratzy's MOST framework has given ACI a rating of AA, indicating a Medium Fundamental Risk. The MOST framework evaluates four pillars: Management, Outlook, Safety, and Trend. Each pillar receives a score, which is then combined to create an overall score. ACI's AA rating suggests that it has a strong management team, a positive outlook, a solid safety record, and a favorable trend. This indicates that ACI is a relatively safe investment with a low risk of fundamental issues.
Company's Fundamentals:
Archean Chemical Industries (ACI), listed on the NSE, has a stock PE ratio of 25.41, indicating that the market is willing to pay 25.41 times the company's per-share earnings. The PB ratio of 6.47 implies that the market values the company at 6.47 times its book value per share. The dividend yield of 0.3% represents the annual dividend per share as a percentage of the current market price. These ratios suggest that ACI is currently trading at a premium to its earnings and book value, while offering a modest dividend yield.
Fundamental and Technical information provided in this blog were last updated on 02 Jul, 2024
Disclaimer: The information and recommendations presented in this section, including any attached reports, are sourced from third-party providers through diverse channels. The views and opinions expressed within these materials belong solely to their respective creators. These views and opinions do not necessarily reflect the position of Stratzy Fintech Pvt Ltd. Stratzy explicitly disclaims any guarantees, express or implied, regarding the accuracy and reliability of the provided content. We strongly advise consulting with a licensed financial advisor before making any investment decisions based on this information. Remember, seeking independent financial advice is crucial.