Archean Chemical - Chart of the Week

Apr 13

ACI has a beautiful structure in the Weekly Timeframe that qualifies for my Chart of the Week idea. It saw Decent Volumes this week and closed above its recent swing high, with RSI and MACD Trending Upwards and Closing Above all Major Short moving Averages, breaking the Trendline.

About:
ACI is India's largest exporter of bromine and industrial salt in Fiscal 2021. The company is the leading specialty marine chemical manufacturer in India and is focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world.

Brokerage View:
ICICI Securities research report on Archean Chemical Industries

ACI has a plethora of opportunities – each carrying strong value creation potential – along its path ahead. Right off the bat, the expansion in bromine derivatives, and thus, higher captive bromine consumption would likely provide a strong fillip to ACI’s bromine business. Separately, Oren shall help cater to chemicals’ demand for O&G exploration services along with bromine compounds. Also, the success in its SOP flotation process could unlock extensive value. Further, its foray into SiC chip production – likely production FY28E onwards – would place ACI among the few Indian producers in semiconductors.

Outlook:

It is also exploring a giga-factory in ZincGel batteries using zinc-bromide electrolyte, which exhibits synergies with its bromine. In our view, the stock has little to lose due to undemanding valuations (12.8x FY27E PE). Retain BUY and TP of INR 675 (based on 15x FY27E EPS).

Trade Setup:
It has broken the falling trendline and respected a Major Support Zone, Buy on Dips will the way to play this counter because of the uncertain environment of trump tariffs.

Stop Loss:
Swing Low Levels around the Levels Marked on a Weekly Closing Basis only.

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Disclaimer: "I am not SEBI REGISTERED RESEARCH ANALYST AND INVESTMENT ADVISER."
This analysis is intended solely for informational and educational purposes and should not be interpreted as financial advice. It is advisable to consult a qualified financial advisor or conduct thorough research before making investment decisions.

5 days ago

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Up 5% after Reco