Buy Archean Chemical Ind: IIFL Securities's Target Price Rs 805

IIFL Securities recommends a "buy" rating for Archean Chemical Industries, with a target price of Rs. 805, indicating a potential upside of approximately 3.1% from the current market price of Rs. 780.95 as of July 29. This positive outlook is based on the company's strong financial performance, growth prospects, and favorable industry trends.

About Archean Chemical Ind:

Archean Chemical Industries Limited is a specialty chemicals manufacturing company listed on the National Stock Exchange of India (NSE). Founded in 1983, the company manufactures a wide range of specialty chemicals, including bromine and bromine derivatives, quaternary ammonium compounds (QACs), phase transfer catalysts, and other specialty chemicals. Archean Chemical's products find applications in diverse industries such as pharmaceuticals, textiles, personal care, water treatment, food additives, and oil and gas. The company has a strong focus on research and development, with a dedicated R&D center in Mumbai. Archean Chemical has received recognition for its innovative products and sustainable practices, winning several industry awards.

52 Week Price Trend:

Archean Chemical Industries (ACI) is currently trading at Rs 780.95, significantly below its 52-week high of Rs 834.25. The stock has witnessed a notable rise from its 52-week low of Rs 494.15, reflecting a potential recovery trend. ACI's recent performance may be attributed to factors such as improved demand for its products, cost optimization measures, or positive market sentiment. Investors may consider monitoring the company's financial performance and industry dynamics to gauge its growth prospects.

Stratzy's MOST Analysis:

Stratzy's MOST Framework has assigned ACI a rating of AA, indicating a Low Fundamental Risk. This rating reflects strong performance in the areas of Management, Outlook, Safety, and Trend. ACI demonstrates effective management practices, a positive outlook for the future, a strong safety record, and a favorable industry trend. This rating suggests that ACI is a company with sound fundamentals and a low risk of encountering significant financial or operational challenges.

Company's Fundamentals:

Archean Chemical Industries (ACI), listed on NSE, is currently trading at a Stock PE of 25.41, indicating that investors are willing to pay 25.41 times the company's annual earnings for each share. The PB Ratio of 6.47 suggests that ACI's market value is 6.47 times its book value, indicating a premium valuation compared to its assets. Despite its valuations, ACI offers a modest Dividend Yield of 0.3%, providing investors with a small income stream but not being a major attraction for income-seeking investors.

Fundamental and Technical information provided in this blog were last updated on 27 Jul, 2024

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