IIFL Securities Stock Idea: Buy Archean Chemical Ind with Target Rs 690

IIFL Securities recommends a 'buy' call for Archean Chemical Industries at the current market price of Rs 615.55. The target price for the stock has been set at Rs 690. The stock is expected to benefit from the increasing demand for performance chemicals, especially in the automotive and construction sectors. Additionally, the company's strong balance sheet and experienced management team are seen as positives by the brokerage firm.

About Archean Chemical Ind:

Archean Chemical Industries Limited, listed on the National Stock Exchange of India (NSE), is a leading manufacturer of specialty chemicals and pharmaceutical ingredients. The company's portfolio includes products such as pyridine and pyridine derivatives, specialty solvents, performance chemicals, and intermediates used in the pharmaceutical, agrochemical, and textile industries. Archean Chemical has a strong presence in both domestic and international markets, with manufacturing facilities in India, China, and Europe. The company emphasizes research and development to cater to the evolving needs of its customers in various industries.

52 Week Price Trend:

Archean Chemical Industries' (ACI) current market price (CMP) of Rs 615.55 falls within a relatively wide range established by its 52-week high and low prices of Rs 834.25 and Rs 494.15, respectively. This range suggests that the stock has experienced significant price fluctuations over the past year. However, ACI's current price is closer to its 52-week high than its low, indicating a recent upward trend.

Stratzy's MOST Analysis:

ACI has been rated AA by Stratzy's MOST framework, indicating a low fundamental risk. This assessment is based on a detailed analysis of the company's management, outlook, safety, and trend. The strong management team, positive outlook, sound safety practices, and favorable industry trends contribute to ACI's overall favorable rating. This rating suggests that ACI is a financially stable and well-managed company with a promising future.

Company's Fundamentals:

Archean Chemical Ind (NSE:ACI) is a publicly listed company on the National Stock Exchange (NSE) of India. As of the current market analysis, the stock has a Price-to-Earnings (PE) ratio of 25.41, indicating that investors are willing to pay Rs. 25.41 for every Re. 1 of earnings. The Price-to-Book (PB) ratio of 6.47 suggests that the stock is currently trading at a price 6.47 times its book value, implying that investors perceive the company's assets to be undervalued. The dividend yield of 0.3% represents the annual dividend payout as a percentage of the current stock price, indicating a relatively low dividend income for investors. These financial ratios provide insights into the company's valuation, profitability, and dividend policy, helping investors make informed investment decisions.

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

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