Hold Archean Chemical Industries; target of Rs 554: Deven Choksey

About this update from Archean Chemical Industries Ltd.

Deven Choksey report on Archean Chemical IndustriesArchean Chemical reported a moderate Q2 FY26 as weather-led disruptions impacted production across core product lines. Consolidated revenue for the quarter stood at INR 2,332 mn, down 3.0% YoY missed our estimate by 34.3%. The revenue mix for Q2 comprised 33% bromine and 67% industrial salt. EBITDA came in at INR 626 mn, declining 16.1% YoY, with margins at 26.8%. PAT for the quarter stood at INR 290 mn. For H1 FY26, Consolidated revenue grew 16.0% YoY to INR 5,255 mn despite monsoon-led challenges. EBITDA declined 3.6% YoY to INR 1,407 mn, while PAT rose 14.2% YoY to INR 692 mn.OutlookWe have roll-forward our valuation basis to Sep’27 EPS. We value Archean Chemicals at 18.0x Sep’27 EPS implying a TP of INR 554 and downgrade our rating from “ACCUMULATE” to “HOLD” factoring in challenges ahead, centered on operational inefficiencies, execution delays, and external volatility.For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Archean Chemical Industries - 25112025 - anand

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