IIFL Securities's Stock Idea: Buy Archean Chemical Ind with Target Rs 835

On August 22, IIFL Securities issued a buy call on Archean Chemical Industries, recommending investors to purchase the stock at its current market price of Rs 806.1. The brokerage firm set a target price of Rs 835 for the stock, indicating an upside potential of approximately 3.6%. This buy recommendation is based on the company's strong financials, robust industry outlook, and potential growth opportunities. Archean Chemical Industries is a leading player in the specialty chemicals sector, serving a diverse range of industries such as pharmaceuticals, food processing, and textiles.

About Archean Chemical Ind:

Archean Chemical Industries Limited, incorporated in 1987, is a mid-cap company in the chemicals sector in India. The company is engaged in the manufacturing and marketing of bromine and its derivatives, specialty chemicals, hydrogen peroxide, and other inorganic chemicals. Its product portfolio includes value-added products, like bromo-methanes, bromo-ethanes, and their derivatives, which find applications in industrial chemicals, pharmaceuticals, and oil exploration. Archean has a presence in over 50 countries and its major revenue is from exports.

52 Week Price Trend:

Archean Chemical Industries (ACI), currently trading at Rs 806.1, has witnessed a notable rise from its 52-week low of Rs 494.15. Although it falls short of its 52-week high of Rs 834.25, the stock has shown a steady upward trend in recent months. Analysts attribute this growth to the company's strong performance in its specialty chemicals and polymers segments. ACI's robust financial results and expansion plans have also contributed to investor confidence. With its commitment to innovation and customer-centricity, ACI is well-positioned to maintain its growth trajectory in the chemical industry.

Stratzy's MOST Analysis:

ACI has received an AA rating from Stratzy's MOST framework, which evaluates stocks based on management, outlook, safety, and trend. This rating indicates that ACI has strong fundamentals with low risk. The management team is experienced and has a track record of success. The company has a positive outlook with growth potential. ACI has a strong financial position and a proven track record of safety. The overall score of AA suggests that ACI is a relatively low-risk investment with solid fundamentals.

Company's Fundamentals:

Archean Chemical Ind (NSE: ACI), a company listed on the National Stock Exchange (NSE), has a stock PE (Price-to-Earnings) ratio of 25.41. This ratio indicates that investors are paying Rs. 25.41 for every Re. 1 of earnings generated by the company. The PB Ratio (Price-to-Book) stands at 6.47, suggesting that the current market price of the stock is 6.47 times its book value, a common measure of the company's assets less its liabilities. Additionally, ACI offers a modest Dividend Yield of 0.3%, translating to a dividend payout of Rs. 0.3 for every Rs. 100 invested in the stock.

Fundamental and Technical information provided in this blog were last updated on 22 Aug, 2024

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