IIFL Securities's Stock Pick Today: Buy Archean Chemical Ind with Target Rs 715

IIFL Securities recommends buying shares of Archean Chemical Industries at the current market price of Rs 690.9 with a target price of Rs 715. The brokerage believes that Archean Chemical is well-positioned to benefit from the growing demand for specialty chemicals in various end-use industries such as paints, adhesives, and construction. The company's strong financial performance and strategic initiatives are expected to drive growth in the coming quarters.

About Archean Chemical Ind:

Archean Chemical Industries Limited, incorporated in 1961, is a specialty chemicals company based in Mumbai, India. It manufactures over 100 chemical formulations across eight dedicated business segments, including surfactants, chlor-alkali products, oleochemicals, and specialty chemicals. The company has a strong presence in the personal and home care, textile, paper, and other industries. Archean Chemicals also exports a significant portion of its products to various countries around the world. With a focus on innovation and sustainability, the company has been recognized for its commitment to environmental protection and corporate social responsibility.

52 Week Price Trend:

Archean Chemical Industries (ACI) is currently trading at Rs 690.9, within a 52-week range of Rs 494.15 and Rs 834.25. The stock has seen a significant decline from its 52-week high, indicating a potential buying opportunity for long-term investors. However, it is crucial to conduct thorough research and consider market conditions before making any investment decisions.

Stratzy's MOST Analysis:

Based on Stratzy's MOST framework, ACI has received an AA rating, indicating medium fundamental risks. The MOST framework evaluates companies across four pillars: Management, Outlook, Safety, and Trend. ACI's strong performance in these areas has resulted in a favorable overall score, suggesting a relatively stable and reliable investment with moderate risk.

Company's Fundamentals:

Archean Chemical Industries (ACI) is a company listed on the National Stock Exchange (NSE) of India. As of today, the stock has a price-to-earnings (PE) ratio of 25.41, indicating that investors are willing to pay 25.41 times the company's annual earnings per share. The price-to-book (PB) ratio of 6.47 suggests that the stock is trading at 6.47 times the company's book value per share. Lastly, the dividend yield of 0.3% represents the annual dividend payout divided by the current stock price, reflecting the low amount of dividends paid out by the company relative to its stock price.

Fundamental and Technical information provided in this blog were last updated on 20 Jun, 2024

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