Archean Chemical Industries, a small-cap player, witnessed a notable drop of nearly 4% in its stock price during intraday trading on the Bombay Stock Exchange (BSE) on Thursday, May 8, 2025. This decline marks the third consecutive session of losses for the company. Starting the day at ₹603.25, the share price slipped to an intraday low of ₹583.45, reflecting a 3.6% decrease from its previous close of ₹605.40. By around 12:45 PM, the stock was trading at ₹589, down 2.71%. Meanwhile, the equity benchmark Sensex remained relatively unchanged at 80,789.
Financial Performance in Q4FY25
Archean Chemical Industries recently released its Q4FY25 financial results after the market closed on May 2. The specialty chemicals firm reported a 2.2% year-on-year decline in profit after tax (PAT), which fell to ₹58.31 crore, compared to ₹59.64 crore during the same period last year. However, total income saw an impressive increase of 12%, reaching ₹333.33 crore, up from ₹297.22 crore in Q4FY24. Interestingly, EBITDA for the quarter showed a slight dip, coming in at ₹101.12 crore, a decrease from ₹101.94 crore in the previous year.
Stock Downgrade by Axis Securities
In a recent shift, Axis Securities downgraded Archean Chemical Industries’ stock rating from "buy" to "hold," with a target price set at ₹560. The firm noted that while the company’s consolidated revenue exceeded expectations by 17%, both EBITDA and PAT fell short of projections by 4%. Despite these challenges, Axis Securities expressed confidence in the company’s bromine derivatives project and its strategic acquisition of Oren, which is anticipated to positively impact revenue in the upcoming quarters.
- Key Insights from Axis Securities:
- Strong demand anticipated in the industrial salt segment.
- Recovery in the SOP segment expected to begin in FY26.
- Strategic investments in UK and US firms could foster growth in semiconductors and energy storage.
Shareholding Trends and Institutional Stake
As per the shareholding data for the March quarter (Q3FY25), foreign portfolio investors (FPIs) have increased their stake in Archean Chemical Industries to 10.94%, up from 10.65%. Notably, Goldman Sachs, through its India Equity Portfolio, maintained a holding of 30,38,345 shares, equating to a 2.46% stake in Q4FY25. Domestic Institutional Investors (DIIs) also expanded their holdings to 23.18%, up from 22.85%.
However, some notable investors, including Nippon Life India Trustee, HDFC Mutual Fund, and DSP Small Cap Fund, appear to have reduced their stakes during this period. In contrast, only the SBI Small Cap Fund remains listed among the mutual funds in the current shareholding data, with a stake reduced to 6.88%.
Conclusion
Archean Chemical Industries is navigating a challenging market landscape, reflected in its recent stock performance and financial results. With strategic initiatives underway and an eye on future growth opportunities, the company’s trajectory will be closely watched by investors and analysts alike. For further updates on market trends and investments, stay tuned.
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