Buy Archean Chemical Industries, target price Rs 665: JM Financial

JM Financial has buy call on Archean Chemical Industries with a target price of Rs 810. The current market price of Archean Chemical Industries is Rs 541.2.

Archean Chemical Industries, incorporated in the year 2009, is a Small Cap company (having a market cap of Rs 6670.09 Crore) operating in Chemicals sector.

Archean Chemical Industries key Products/Revenue Segments include Bromine, Salt, Potash, Others for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 390.71 Crore, up 4.92 % from last quarter Total Income of Rs 372.40 Crore and unchanged .00 % from last year same quarter Total Income of Rs Crore. Company has reported net profit after tax of Rs 136.51 Crore in latest quarter.

The company’s top management includes Mr.Ranjit Pendurthi, Mr.Ravi Pendurthi, Mr.Subrahmanyam Meenakshisundaram, Ms.Padma Chandrasekaran, Mr.Chittoor Ghatambu Sethuram, Mr.Kandheri Munaswami Mohandass. Company has PKF Sridhar & Santhanam�LLP as its auditors. As on 31-03-2023, the company has a total of 12 Crore shares outstanding.

Investment Rationale
The brokerage continues to like the bromine derivatives story offering 36% EPS CAGR over FY23-26E (even after baking in normalised bromine prices). The brokerage maintains BUY with a Jun’24 TP of INR810/share (based on 12X Jun’25E EPS).

Promoter/FII Holdings
Promoters held 53.6 per cent stake in the company as of 31-Mar-2023, while FIIs owned 5.47 per cent, DIIs 30.25 per cent.