Archean Chemical Industries Intrinsic Value

ACI • Chemicals
Current Stock Price
₹583.90
Primary Intrinsic Value
₹175.17
Market Cap
₹1460 Cr
-31.8% Downside
Median Value
₹397.95
Value Range
₹175 - ₹746
Assessment
Trading Above Calculated Value
Safety Margin
-46.7%

ACI Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹175.17 ₹140.14 - ₹210.20 -70.0% EPS: ₹9.44, Sector P/E: 12x
Book Value Method asset ₹745.60 ₹671.04 - ₹820.16 +27.7% Book Value/Share: ₹745.60, P/B: 1.0x
Revenue Multiple Method revenue ₹307.20 ₹276.48 - ₹337.92 -47.4% Revenue/Share: ₹384.00, P/S: 0.8x
EBITDA Multiple Method earnings ₹662.40 ₹596.16 - ₹728.64 +13.4% EBITDA: ₹276.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹653.58 ₹522.86 - ₹784.30 +11.9% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹175.17 ₹157.65 - ₹192.69 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹175.17 ₹157.65 - ₹192.69 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹464.00 ₹417.60 - ₹510.40 -20.5% ROE: 6.2%, P/E Multiple: 10x
Graham Defensive Method conservative ₹397.95 ₹358.15 - ₹437.75 -31.8% EPS: ₹9.44, BVPS: ₹745.60
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

ACI Intrinsic Value Analysis

What is the intrinsic value of ACI?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Archean Chemical Industries (ACI) is ₹397.95 (median value). With the current market price of ₹583.90, this represents a -31.8% variance from our estimated fair value.

The valuation range spans from ₹175.17 to ₹745.60, indicating ₹175.17 - ₹745.60.

Is ACI undervalued or overvalued?

Based on our multi-method analysis, Archean Chemical Industries (ACI) appears to be trading above calculated value by approximately 31.8%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 2.08 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Return on Equity 6.2% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 27.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.40x Industry Standard: 1.0x+ Below 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹176 Cr ₹53 Cr Positive Free Cash Flow 7/10
March 2024 ₹379 Cr ₹226 Cr Positive Free Cash Flow 8/10
March 2023 ₹496 Cr ₹351 Cr Positive Free Cash Flow 8/10
March 2022 ₹315 Cr ₹260 Cr Positive Free Cash Flow 8/10