Goldman Sachs-owned, DII favourite small-cap stock drops 4%; Axis Securities downgrades it; do you own?
The speciality chemicals company announced its Q4FY25 results after market hours on May 2. The company reported a 2.2 per cent year-on-year (YoY) decline in its profit after tax (PAT) for the quarter to ₹ 58.31 crore from ₹ 59.64 crore in the same quarter last year.
Total income, however, increased 12 per cent to ₹ 333.33 crore from ₹ 297.22 crore in Q4FY24.
EBITDA in Q4FY25 saw a mild dip, coming at ₹ 101.12 crore from ₹ 101.94 crore in Q4FY24.
Brokerage firm Axis Securities downgraded the stock to a "hold" from a "buy", pegging the target price of ₹ 560.
Axis pointed out that the company's Q4FY25 consolidated revenue beat its estimate by
17 per cent. However, EBITDA fell short of its estimates by 4 per cent, while the PAT also missed its estimate by 4 per cent.
According to Axis Securities, Archean Chemical Industries remains confident in its bromine derivatives project and the strategic acquisition of Oren, which is expected to make a meaningful contribution to the top line in the coming quarters.
Moreover, Axis highlighted that the company anticipates sustained strong demand in the industrial salt segment and a recovery in the SOP segment beginning in FY26.
Strategic investments have also been made in two UK- and US-based companies, which are expected to unlock new growth opportunities in semiconductors and energy storage, Axis Securities said.
(This is a developing story. Please check back for fresh updates.)
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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
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