Buy Archean Chemical Industries, target price Rs 750: ICICI Securities

ICICI Securities has buy call on Archean Chemical Industries with a target price of Rs 750. The current market price of Archean Chemical Industries is Rs 616.4.

Archean Chemical Industries, incorporated in the year 2009, is a Small Cap company (having a market cap of Rs 7597.29 Crore) operating in Chemicals sector.

Archean Chemical Industries key Products/Revenue Segments include Salt, Bromine, Potash, Others for the year ending 31-Mar-2023.


Financials
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 354.02 Crore, down -9.39 % from last quarter Total Income of Rs 390.71 Crore and unchanged .00 % from last year same quarter Total Income of Rs Crore. Company has reported net profit after tax of Rs 93.86 Crore in latest quarter.

Investment Rationale
Archean Chemical’s (ACI) Q1FY24 result was relatively better despite the volatility in bromine prices due to long-term contracts, and strong performance in industrial salts. The brokerage expects bromine to witness volume recovery by Q4FY24E, and prices to firm up only in FY25E. ACI is also in the process of commissioning its derivative plant which increases earnings visibility during the forecasted period.

Promoter/FII Holdings
Promoters held 53.6 per cent stake in the company as of 30-Jun-2023, while FIIs owned 4.06 per cent, DIIs 30.78 per cent.