The shares of the leading industrial salt exporter gained 3% to an intraday high of ₹677.35 per share on Friday’s trade a day after Foreign Institutional Investors (FIIs) bought a stake in the company via a block deal.
On Friday’s early trade, At 10:40 a.m., Archean Chemical Industries Ltd. shares were trading at ₹671 share on the Bombay Stock Exchange, up 2.07 percent from the previous close. The company has a market value of ₹ 8,272 crore.
What News: Foreign Institutional Investor Goldman Sachs, through its Goldman Sachs India Equity Portfolio, acquired 6.2 lakh equity shares in the company at a price of ₹658 per share. Meanwhile, Nishtha Investment & Consultancy Services Private Limited purchased 6.2 lakh shares in the company at ₹669.22 per share via a block deal.
According to BSE block deal data, on June 27th, Piramal Natural Resources Private Limited, India Resurgence Fund – Scheme 2, and India Resurgence Fund – Scheme 1 sold approximately 34 lakh, 57 lakh, and 34 lakh shares, respectively. These sales amounted to ₹223 crore, ₹377 crore, and ₹223 crore, with an average selling price of ₹658 per share.
About the company: Archean is a leading specialty marine chemical manufacturer in India focused on producing and exporting bromine, industrial salt, and sulfate of potash across the world.
Archean Chemical Industries is a prominent exporter of industrial salt, shipping all its production to Japan and China. It operates one of the world’s largest salt works at a single location, equipped with three washeries each capable of processing 200 tons per hour.
Additionally, Archean Chemical has significant manufacturing capacities: 42,500 metric tonnes per annum (MTPA) for Bromine, 3,000,000 MTPA for Industrial Salt, and 130,000 MTPA for Sulphate of Potash.
In terms of revenue, the company derives 26% from the Indian market and 74% from international markets. It serves a total of 69 clients, including 39 global entities such as Sojitz Corporation Japan, UniBrom, and Tianyi Group.
Financials: The Archean Chemical Industries experienced a decline in revenue of 26 percent, moving from ₹382 crore in Q4FY23 to ₹283 crore in Q4FY24. And during this period, net profit declined by 56 percent, rising from ₹137 crore to ₹60 crore
Over the past 12 months, shares of Archean Chemical Industries have surged by 23 percent. However, in the last six months, the share value has increased by 3 percent.
Written by Omkar Chitnis
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