Archean Chemical Industries Limited

NSEI:ACI Stock Report

Market Cap: ₹81.8b

Archean Chemical Industries Valuation

Is ACI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ACI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ACI (₹663.05) is trading below our estimate of fair value (₹705.91)

Significantly Below Fair Value: ACI is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ACI?

Key metric: As ACI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ACI. This is calculated by dividing ACI's market cap by their current earnings.
What is ACI's PE Ratio?
PE Ratio37.2x
Earnings₹2.20b
Market Cap₹81.84b

Price to Earnings Ratio vs Peers

How does ACI's PE Ratio compare to its peers?

The above table shows the PE ratio for ACI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average66.2x
ANURAS Anupam Rasayan India
114x47.6%₹79.7b
530117 Privi Speciality Chemicals
50.7x19.6%₹68.9b
GALAXYSURF Galaxy Surfactants
30.6x14.1%₹95.8b
500123 ELANTAS Beck India
69.3xn/a₹101.7b
ACI Archean Chemical Industries
37.2x43.0%₹81.8b

Price-To-Earnings vs Peers: ACI is good value based on its Price-To-Earnings Ratio (37.2x) compared to the peer average (66.2x).

Price to Earnings Ratio vs Industry

How does ACI's PE Ratio compare vs other companies in the IN Chemicals Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ZUARI Zuari Agro Chemicals
4.9xn/aUS$104.29m
NAGAFERT Nagarjuna Fertilizers and Chemicals
0.3xn/aUS$64.62m
UNIVPHOTO Universus Photo Imagings
5xn/aUS$49.59m
526773 Pressure Sensitive Systems (India)
0.6xn/aUS$7.15m
ACI 37.2xIndustry Avg. 31.4xNo. of Companies36PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ACI is expensive based on its Price-To-Earnings Ratio (37.2x) compared to the Indian Chemicals industry average (31.4x).

Price to Earnings Ratio vs Fair Ratio

What is ACI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ACI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio37.2x
Fair PE Ratio46.2x

Price-To-Earnings vs Fair Ratio: ACI is good value based on its Price-To-Earnings Ratio (37.2x) compared to the estimated Fair Price-To-Earnings Ratio (46.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ACI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹663.05
₹835.29
+26.0%
5.9%₹912.00₹776.00n/a7
Nov ’25₹649.70
₹890.14
+37.0%
13.3%₹1,158.00₹800.00n/a7
Oct ’25₹720.05
₹878.71
+22.0%
14.7%₹1,158.00₹720.00n/a7
Sep ’25₹742.85
₹878.71
+18.3%
14.7%₹1,158.00₹720.00n/a7
Aug ’25₹785.95
₹788.17
+0.3%
11.9%₹943.00₹675.00n/a6
Jul ’25₹680.90
₹757.20
+11.2%
9.2%₹864.00₹675.00n/a5
Jun ’25₹621.40
₹730.50
+17.6%
6.9%₹812.00₹675.00n/a4
May ’25₹652.25
₹743.00
+13.9%
5.5%₹812.00₹705.00n/a4
Apr ’25₹676.25
₹743.00
+9.9%
5.5%₹812.00₹705.00n/a4
Mar ’25₹731.30
₹743.00
+1.6%
5.5%₹812.00₹705.00n/a4
Feb ’25₹628.40
₹663.33
+5.6%
4.3%₹700.00₹630.00n/a3
Jan ’25₹647.20
₹651.67
+0.7%
2.4%₹665.00₹630.00n/a3
Dec ’24₹591.40
₹651.67
+10.2%
2.4%₹665.00₹630.00n/a3
Nov ’24₹548.70
₹723.33
+31.8%
3.8%₹750.00₹685.00₹649.703
Oct ’24₹588.85
₹723.33
+22.8%
3.8%₹750.00₹685.00₹720.053
Sep ’24₹664.30
₹723.33
+8.9%
3.8%₹750.00₹685.00₹742.853
Aug ’24₹512.60
₹755.00
+47.3%
5.7%₹810.00₹705.00₹785.953
Jul ’24₹536.25
₹755.00
+40.8%
5.7%₹810.00₹705.00₹680.903
Jun ’24₹544.65
₹755.00
+38.6%
5.7%₹810.00₹705.00₹621.403
May ’24₹550.85
₹785.00
+42.5%
3.6%₹820.00₹750.00₹652.253
Apr ’24₹650.45
₹785.00
+20.7%
3.6%₹820.00₹750.00₹676.253

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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