Archean Chemical Industries Ltd. (ACIL) offers multiple MOATS which are expected to translate into key growth drivers going forward as the company slowly ramp-up its Bromine Derivative capacity along with its traditional secured Salt business and soon-to-be-revived Sulphate of Potash business. We believe ACIL is well placed in the bromination space given i) Strong industry growth drivers; increased usage of Bromine in agrochem and pharma chemistries, ii) Forward integration into highvalue business with strong demand from the largest geographies in the world,and iii) Well-nurtured long-term relationship with customers. The stock currently trades at 10x FY25E EPS. We value the stock at 14x FY25E EPS and initiate coverage with a BUY rating on the stock with a target price of Rs 810/share, implying an upside of 33% from the CMP.
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