This Chemical stock which deals in the business of manufacturing specialty marine chemicals and focused on bromine production and export surged 17% after the company’s subsidiary semiconductor plant investment of Rs. 3,000 crore.
Share Price Movement
In Thursday’s trading session, Archean Chemical Industries‘s share price was up by 17.31 percent to the day’s high of Rs. 642.90. The stock reiterated from the day’s high and was trading at Rs. 620.15 which is 13.17 percent higher from the previous close of Rs. 548 per share. In the past year, the stock has given a negative return of around 1 percent returns and underperformed the Nifty Index.
What Happened
The company’s stock surged after its subsidiary SiCSem Private Limited conducted a groundbreaking ceremony with Odisha Chief Minister Mohan Charan Majhi virtually and Union Minister of Railways, Information and Broadcasting and Electronics & IT, Ashwini Vaishnaw and Mukesh Mahaling, Minister of Health & Family Welfare, Parliamentary Affairs and Electronics & IT.
SiCSem is projected to invest upto Rs. 3,000 crores for Compound Semiconductor Facility and it will integrate the process of power devices manufacturing including a Wafer Fabrication Plant. This plant will cater to industries like electric vehicles, fast chargers, energy storage, industrial tools, green energy, data centres, consumer appliances, and others. For this project, the State government has allotted 14.32 acres of land in Bhubaneshwar and approved under the policy of Odisha Semiconductor and Fabless – 2023.
Financials
In its latest filing for the quarter ending September 2024, the company reported a 17.24 percent decline in revenue, reaching Rs.240 crore compared to Rs.290 crore in Q2FY24. During the same period, net profit declined by 75.75 percent to Rs.16 crore in Q2FY25, compared to Rs.66 crore in Q2FY24.
Volume Guidance
The company has a guidance of around 22,000 to 25,000 metric tons for bromine and for the salt business, it is around 4.5 million tons for FY25.
Company Profile
Archean Chemical Industries Limited is a premier Indian manufacturer that specializes in marine chemicals while focusing on bromine, industrial salt, and sulfate of potash, with a strong global export presence.
Written by – Santhosh S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
