What is this information and the source behind it?
Why promoters pledged 4.55% of its holding in Dec '23 quarter? Any info?
Is Archean chemical enjoying these war like situation taking place between Israel and Iran ?
I find this company rather interesting, from a long term perspective. As per the DRHP the Rann of Kutch where Archean leases 6,50,000 acres of land is the second lowest cost source of bromine after the Dead Sea. While even long term contracts will be impacted by spot prices of bromine, the cyclicity should be much lower than that of other chemical companies. Further as this company moves into downstream bromine, the internal source of bromine would give a cost advantage over competition. It’s a nice little long term moat - while 3-4 companies have similar leases on smaller parcels in Gujarat there wouldn’t be too many places in the world which have this kind of advantage - it is a somewhat unique advantage as far as speciality chemicals cos go.
IMO renewal of leases is the long term concern otherwise with 20% + ROCE & 24% net margin in 2023-24 which is like a really poor year in the cycle, the company looks like a long term compounder. 2023 ROCE was 38%+. EvenPE of 24 times (again in a downcycle on low earnings) on CMP of 616 looks quite decent.
Anybody got any insights on SicSim (a subsidary of Neun Infra Private Limited, which is WOS of Archean Chemical and owns 70% SicSim) and its foray into manufacturing semiconductors?(SiCSem plans plant in Odisha, ties up with IIT)
10%+ shares changed hands in the block deal today done at average 658/-. Sellers were India Resurgence Fund and Piramal Natural Resources Pvt Ltd. Buyers included Goldman Sachs and Nistha Investment